Landlords Your rights and responsibilities at a final inspection
It is crucial to consider the rights and obligations when a tenant vacates your property to prevent lawsuits and ultimately save time and resources.
What is a final inspection on a bond?
When the occupant has terminated the tenancy and delivered an empty house, a final bond check is something you do. The property should be compared to the Property Condition Report as this review is done (either by you or your managing agent).
The Property Condition Report is a report performed before your client moves into your property. It is a detailed paper detailing the property's status, including any damage that was present when the occupant moved in. Make sure that you carry out this report very carefully if you self-manage your house. It's a common area for contradictions.
As a landlord, your rights and obligations
You have to fulfill a variety of duties as a landlord. Of course, there is state and territory-specific law to protect your interests and the rights of your tenant, as with other aspects in the property management profession.
Damage to property
You're entitled to have your house returned to you at the conclusion of a tenancy in a safe and undamaged state. However there is a distinction between malicious damage caused by recklessness and negligence and reasonable wear and tear. For fair wear and tear on your property, your occupant is not liable.
Doing the final inspection
You or your property manager, as soon as possible, must:
- Execute a final property inspection;
- The final condition report detailing the condition of the property is prepared; and
- Provide the occupant with a copy of the report.
You must have a fair opportunity for your tenant to attend this final inspection. It is in both you and your tenant's best interests to conduct a collective inspection around the time they move out and to plan for the property keys to be returned.
Using your Condition Report on Property
Using the Property Condition Report you prepared at the outset at the conclusion of a tenancy. Compare each item's status against the original information and address with the tenant any problems such as breakages, losses or lost objects.
Doing this will help you to find out what's outstanding for your tenant, such as:
- Arrears on rents
- Outstanding bills involving water, gas and electricity;
- Cleaning expenses (if the property has not been left in a clean state); or
- Loss to property and contents (if applicable) belonging to you.
How to Determine repairs costs
You will hold the tenant responsible for any damage they cause during their lease that is wilful or neglectful. However once your tenant has created total havoc on your fixtures or fittings, deciding what amount to charge for content damage can be challenging. Generally speaking, only the replacement cost should be paid if the loss can be fairly restored.
Your occupant will be responsible to pay for repairing the damaged carpet with one of the same quality as the original if the damage is serious (i.e. carpet damage, which may require replacement).
However, assessing burn marks or stains that can not be removed can be more complicated. Consider variables such as the property's age and the damage's size and location. Try, if necessary, to negotiate the amount of money that can be withheld as restitution from the tenant's bond.
Keep all things polite
Where possible, make an attempt to settle on deductions from the security bond for your vacating tenant. Try to negotiate if you do not come to an understanding. If this all doesn't go to schedule, in the state Magistrate's Court the bond disposal will need to be settled.
The Keys Returned
Your tenant is liable for returning all sets of keys given to them at the end of the tenancy. You may keep them accountable for the cost of replacing the locks or charge them rent before the keys are returned if they don't return the keys.
Note this article is not financial or legal advise. Please check with your financial and legal specialist counsel before making any decisions of your own.
For further information about real estate in this area, contact No Bull Real Estate, your most reliable and friendly real estate agents in Newcastle and Lake Macquarie. Buying, selling, leasing for residential, commercial, industrial property, contact your local expert to buy, sell or lease today on 49552624 or https://www.nobullrealestate.com.au