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.

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