LANDLORDS

Being a landlord
When you own a residential property and intend renting it out, you have two options.
You can either manage the property yourself or use a managing agent.
Engaging an agent to manage the property on your behalf simply means that you
pay a licensed person to run the tenancy for you on a day-to-day basis.
Landlord responsibilities
As the owner of the property, you are responsible for ensuring that the tenancy is
conducted in accordance with the Residential Tenancies Act 1987. The Tenancy
handbook provides landlords and managing agents with more information about
the rights and responsibilities of all parties under the Act. Print or order a
copy from the Fair Trading website or call 13 32 20. One of the key requirements
of the Act is that the tenant must be given a copy of the the Renting guide at
or before entering into the residential tenancy agreement. The Renting guide
is available in various community languages and tenants should receive a copy in
the language most appropriate to their needs. Your agent can obtain free copies
of the Renting guide in English and language versions from the Office of Fair
Trading.
Use a licensed managing agent
All managing agents are required to be licensed by the Office of Fair Trading. You
should ensure that the agent you are interested in using is properly licensed. Do
a licence check online for any agent you are thinking of using or call 13 32 20.

Engaging a managing agent
A good managing agent should have a thorough knowledge and understanding of
tenancy laws and assist you by ensuring your rights and responsibilities as the
landlord are met.
A managing agent's responsibilies include: If rent is paid to you directly into your bank account, it is your responsibility to check the balance regularly to ensure that rent is being deposited. A managing agent must notify you immediately in writing if they become aware a tenant has breached the tenancy agreement. When you engage an agent to manage your property, you will enter into a binding written contract called a Management Agency Agreement. The terms, fees and some conditions of the agreement are negotiable so shop around and compare the prices and services offered by a number of managing agents. To save yourself time and effort, you can specify in the Agreement that only repairs costing more than a nominated amount (eg. $100) require your approval. This enables the agent to authorise minor repairs up to that amount. Standard Management Agency Agreements usually contain a clause stating that a notice period applies to termination. It is your interests to keep the notice period short, say a month or two. Agreements must be terminated in writing. Most agents charge a fee based on a percentage of the gross weekly rental. The agent usually sends you a monthly account, but more frequent accounting can be negotiated. The account shows the amount of rent paid to the landlord less any costs and agency fee. The cost of minor repairs is usually deducted from the rent and listed in your monthly statement as a separate item. Most agents will give you copies of receipts for repairs upon request. It is common industry practice for managing agents to charge a letting or re-letting fee when new tenants are placed in a rental property. The normal fee is 1 week’s rent. These are not compulsory fees and can be negotiated. If a problem arises at any point in the tenancy, taking a pro-active approach to resolving the issue may be an effective way to prevent the problem from escalating into a dispute. Minor problems can become major issues if not dealt with early enough. Fair Trading encourages landlords and agents to intervene early when tenancy problems first emerge. For example, a tenant may be experiencing some kind of temporary personal crisis which is affecting their tenancy. Rather than take action in accordance with the tenancy agreement or the Act it may be more practical to provide the tenant with information on where to go for help, such as a Tenancy Advice and Advocacy Service. Resolving problems quickly is not only good for tenants, it also benefits you the landlord by minimising the possibility of financial loss. The first step in resolving a dispute is to discuss the matter with the parties involved. Ensure you have a clear understanding of your rights and responsibilities in relation to the dispute by checking the residential tenancy agreement, reading the Tenancy handbook or calling the Office of Fair Trading on 13 32 20. If the dispute with your tenant cannot be resolved either on your own or with the assistance of the Office of Fair Trading, you may have to take the case to the Consumer Trader and Tenancy Tribunal (CTTT). The role of the CTTT is to quickly and effectively resolve disputes between tenants, landlords, traders and consumers. For more information about resolving tenancy problems and the CTTT, go to the Fair Trading website or call 13 32 20. This fact sheet must not be relied on as legal advice. For more information about this topic, refer to the appropriate legislation. © State of New South Wales through the Office of Fair Trading * finding suitable tenants
* ensuring the tenancy agreement is correctly completed and signed
* lodging the rental bond with the Office of Fair Trading
* managing the tenancy for you on a day-to-day basis:
* arranging repairs to the property
* collecting the rent and maintaining accurate rent records and receipts
*conducting property inspections
*handling disputes that may arise.
*paying the rent to you less any costs and agency fees, either into your nominated bank account or by cheque.
Management Agency Agreement
Agency fees

Don’t let problems with tenants escalate
When you have problems


