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:

* 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.

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.

Management Agency 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.

Agency fees

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.

Don’t let problems with tenants escalate

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.

When you have problems

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

 

www.nobullrealestate.com.au