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The Landlord Guide

FAQ to Property Management Procedures

Title Page

Introduction1

Consumer and Business Services contact info

Guide totenancies4

Phase 1 – Tenancy Preparation

Leasing a Residential Property

Phase 2 – Tenancy Commencement

Ongoing Management Procedures

Phase 3 – Tenancy Management

Conclusion ofTenancy Agreement

Phase 4 – Tenancy Renewal/Termination

Introduction:

The Landlord Guide provides a basic introduction into the Frequently Ask Questions on property management procedures, and the rights and obligations of a Landlord in South Australia. The guide is structured on four phases: 1) Tenancy Preparation, 2) Tenancy Commencement, 3) Tenancy Management, and 4) Tenancy Renewal/Termination. It is important that the Landlord understands their obligations and rights to minimise risk and manage their property in a professional manner.

The Landlord Guide is design on both current legislation and industry practices, and is to be used as a general checklist to address Frequently Asked Questions on property management procedures. Please note that users should review the relevant legislation listed at the end of the guide before making decisions or taking action.

Allforms discussed in the guide can be downloaded from our website onestoprealty.com.au and from the Consumer and Business Services website In addition the Consumer and Business Services has an advice hotline to further clarify any queries you may have.

Consumer and Business Services

Tenancies

Level 1, 91-97 Grenfell Street, ADELAIDE

GPO Box 965 ADELAIDE SA 5001

DX 225

(Regarding South Australian Tenancies only)

Monday to Friday 8.30am to 5pm (except public holidays)

Residential Tenancies Advice

Telephone 131 882

Facsimile (08) 8204 9570

Email

Bonds

Telephone 131 882

Facsimile (08) 8204 9570

Email

Residential Tenancies Tribunal Registry

Telephone 131 882

Facsimile (08) 8226 8985

Email

Regional Services

All regional services (Berri, Port Augusta, Mount Gambier, Naracoorte, Whyalla, Port Lincoln, Port Pirie, Gawler and Kadina)

Telephone 131 882

Translating & Interpreting Service (TIS)- Telephone: 131 450

Guide to tenancies

Phase 1 – Tenancy Preparation

Ever wondered how to organise your rental property for tenancy? Below are important steps to getting ready for your new tenant/s:

Step 1 – Insurance:

It is recommended to have certain insurance policies to minimize risk: Building Insurance, Landlord Insurance, Contents Insurance, and Public Liability Insurance.

Step 2 – Documentation:

It is principle that you documenteverything throughout the tenancy process. Any phone calls, conversations, receipts, invoices and other paperwork associated to the rental property should be recorded.

Step 3 - Furnish or Unfurnished:

You will need to determine if you will furnish the property or rent unfurnished. Please note that if you choose an unfurnished tenancy the property must provide the basic amenities for cooking (oven and hotplate/s), bathroomsfacilities etc. Furnished properties allow Landlords the opportunity to receive a higher rent and into the short term tenancy market.The increase is subject to demand, condition of the furnishings, property features and location.

Step 4 – Fittings and fixtures:

All fittings and fixtures of the rental property are to be maintained by the landlord. Hence any fittings (air conditioners, dishwashers, oven etc.) that do not work before or breakdown during the tenancy are to be maintained by the landlord. Even if you stipulate in the tenancy agreement that specific fittings are not working and are not to be made good for the tenancy, you are still obliged under law to maintain them.

Step 5 – Maintenance and repairs:

You should inspect the property to identify any maintenance issues that need to be addressed. Landlords are required to provide the property in a reasonable state and to continue to maintain it to a reasonable manner. Please note that although the tenant/s may be aware of the state of disrepair before the tenancy, landlords are obliged to make good.

Step 6 – Cleanliness

The premises must be cleaned to a reasonable state that is fit for occupancy before the tenancy agreement begins. We have a downloadable cleaning guide on our website.

Step 7 – Safety:

The premises must be safe for occupancy with the structure of the property and fixtures to be sound. It is important to inspect the property before the tenancy to identify issues.

Step 8 – Security:

The rental property must be secure with all windows and other points of access working and fitted with appropriate locking systems that are in a good condition. Landlords are not obliged to install additional security systems i.e. alarms, shutters and security screens.

Step 9 – Keys:

The landlord should make at least two personal copies of keys for all locks related to the property. Tenants must have at least one copy of a key to all points of access and lockable devices on the property (Doors, windows, garage, shed, gate locks). If a remote control is required the tenant/s must be provided with at least one working control.

Step 10 – Smoke alarms

The landlord has an obligation to install and maintain working smoke alarms in their rental property throughout the tenancy. We have a link to a smoke alarm pamphlet outlining the required smoke alarms as required by the Development Act 1993.

Step 11– Privacy:

You must provide the tenant/s with reasonable privacy and quiet enjoyment during the tenancy. It is recommended to install adequate internal window coverings to provide reasonable privacy for the tenant/s.

Step 10 –Strata or Community title

If you a leasing out a property which is under a strata or community title you must identify the by-laws and regulations for owners and tenants. For Strata information you should call the managing agent or secretary to get a copy of the rules and regulations. If you own a property under a community title you will need to ask the appointed manager (generally another owner) for the information.

Step 11 – Lease agreements:

You will need to determine what type of agreement (Fixed or Periodic) will be appropriate:

  • A Fixed term agreement is used for long term agreements i.e. 6 – 12 months. The industry norm is to rent the property for a 12 month period.
  • A Short fixed term agreement is used for short rental periods of 90 days or less.
  • A ‘periodic agreement’ is an agreement for short term tenancies or tenancies with no specific end date.
  • A ‘rooming house agreement’ is an agreement used where a boarder or lodger rents a lockable room in a property. This guide does cover this type of agreement, for further information click here, or review the

Step 12 –Rent:

Rent should be reasonable andreflect the current market prices. Similar Rentals within the immediate area provide benchmarks to determining the rental and the REISA have quarterly reports on Adelaidethe rental market for an informed interpretation of the market.

Step 13 – Rental payment system:

Reasonable methods of rental payment include: inter-bank credit, direct deposit, and cash are widely used. The period of rental payments is subject to negotiation, and cannot be changed by the landlord without written agreement from the tenant/s.

Step 14 – Rent receipts and records:

If the tenant/s pays rent into an account held by a recognised financial institution, and the landlord keeps a written record of the transaction history then no receipt is required unless requested. The landlord’s records must include the following information:

  1. The date the rent was received.
  2. The name of the person paying the rent.
  3. The amount paid.
  4. The period of the tenancy to which the payment relates.
  5. The address of the rental premises to which the payment relates.
  6. Any rental arrears on the date of payment should be clearly shown on the record.

If the rent is paid by cash, or the record keeping does not comply with legislation, then the landlord must provide a written receipt to the tenant/s with the information stated above for each payment. A downloadable receipt form can be found our website.

Step 15 - Rent increases:

The landlord has the right to increase rent during a fixed term and periodic residential tenancy agreement IF the lease agreement includes a condition stating that ‘the landlord reserves the right to increase the rent during the agreement’. The landlord must not increase the rent more often than once every six months. Please note that the landlord cannot unfairly increase the rent, and impose unreasonable increases on a continual basis.

Step 16 – Rent Security Deposit:

Tenant/s should provide a two week deposit (2 weeks rent) to the landlord on the day of signing the lease agreement or before. The two week deposit acts as the first two weeks of rent and the landlords should not continue to hold the deposit as a security bond. Under a housing agreement only one week’s rent can be requested as deposit.

Step 17 – Bond:

Tenant/s are required to pay the Private Landlord a bond deposit when they sign the tenancy agreement. The bond is based on the value of the weekly rent, if it is below $250.00 the bond cannot exceed 4 weeks of rent, and if above $250.00 the landlord can ask for bond of no more than 6 weeks rent. If you enter into a housing room agreement the landlord can only request a bond deposit worth 2 weeks rent.

Step 18 - Bond Payment:

Tenant/s have the option to use multiple payment methods to the landlord and directly to the Tenancies Branch. The Consumer and Business Services website outlines these options.

Step 19 – Bond Lodgement:

All Bonds given to the landlord can only be held for seven days before being lodged and held by the Tenancies Branch of the Consumer and Business Services within the Indemnity Fund. Upon lodgement the landlord and tenant/s will be sent a bond receipt and receipt number.This does not comply to housing room agreements where the landlord may hold onto the bond.

Housing SA bond and rent guarantees:

Housing SA offer tenant/s bond guarantees that act as a security for the landlord. This bond must to be lodged to the Office of Consumer Affairs by the date specified on the bond guarantee. Please note that Housing SA will only issue the bond guarantee once the landlord has signed documentation confirming the tenancy.

Step 20 – Water rates:

The Consumer and Business Services hastwo important documents that all landlords should read before making any decisions on the rates and charges passed onto the tenant.A link to these documents can be found on our website under Landlord Forms and Guides.Landlords are obliged to pay water supply and the first 135 kilolitres per year and other water rates.

Step 21 – Exclusion rights:

The landlord has the right to exclude certain areas of the property and freestanding fittings such as garages or sheds. The exclusion condition can not adversely affect the tenant/s enjoyment and privacy of the property.

Step 22 – pets and smoking:

You can add conditions to the tenancy agreement allowing or prohibiting pets and smoking.

Step 23 – Interest:

The cannot request the tenant/s to pay interest on rent arrears or other due expenses.

Step 24 – Sub-letting:

Tenant/s have the right to sublet bedrooms in a rental property of which they are listed on the current tenancy agreement and currently residing within. Tenant/s must give the Landlord formal notice in writing of their intention and provide reasonable information pertaining to the prospective tenant. Please note that the Landlord cannot unreasonable deny the tenant/s request as they can appeal to the Tenancies Tribunal.

Step 25 – Garden:

Landlords can request the tenant/s to maintain the property’s garden, if included as a condition in the tenancy agreement. However, the landlord cannot request the tenant/s to perform specialised work on the garden (pruning & trimming of certain plants and trees).

Step 26 – Wear and Tear vs. Recoverable damage:

Landlords cannot request tenant/s pay for damage to the property or furnishings that are minor and deemed reasonable wear and tear for general residency. The tenant/s is however liable for any damage as a direct result of either their own actions or of individuals or parties consented by the tenant/s to visit the premises.

Step 27 – Tradespeople:

You should make a list of tradespeople who can help with any maintenance issues that may arise during the tenancy. One Stop Realty has a newsletter which provides landlords with a list of reliable tradespeople when they sign up to our public forum.

Step 28 – Council rates and taxes:

The landlord is required to pay all council rates and taxes related to the rental property.

Step 29 – Open Inspections:

You will need to organise an open inspection to show applicants the property. Generally agents will hold an open inspection for 15 minutes at a property between the hours 4pm to 5.30pm weekdays, and 9am to 1pm on Saturday. If you hold an open inspection whilst tenanted you will need written authorisation from the tenant/s. Landlords can only hold opens within 28 days to the end of the tenancy.

Note the landlord is liable for any injury to peoples that enter the property during the period of the inspection, and if they venture onto the property before or after the inspection.

Step 30– Tax and deductions:

As a landlord collecting rent you must abide by the record keeping, invoicing, and income lodgment conditions outlined by the ATO. Landlords can claim deductions for costs incurred in managing the property. Please review the ATO website.

Step 31 – Advertising:

There are several advertising sources that a private landlord can utilise, ranging from online search engines to traditional print. Online search engines are the primary tools used by tenants to search for both Agent and private residential rental properties. One Stop Realty offers landlords the opportunity to advertise on realestate.com for a nominal fee without entering into a long term management agreement.

Step 32 – organising paperwork(All forms and links can be found on our website):

Brief introduction to the some relevant Forms and documents:

  1. Application Form - Provides a description of the applicant’s current work and rental history. All information collected is privateand cannot be used without authorisation.
  2. Lease Agreement – The lease agreement stipulates the length of the tenancy, weekly rent, rental payment system, how often rent will be paid, and other conditions set out by the Residential Tenancies Act 1995. The tenancy agreement is a legally binding contract which all parties must agree and adhere to.
  3. Tenant Fact Sheet – Tenant/s must be given aninformation booklet when they sign the lease. The booklet outlines the rights and obligations of both the tenant and landlord.
  4. Strata Information booklet – Tenant/s must be given a copy of the Strata’s by laws.
  5. Inspection Sheet – Documents the condition and cleanliness of the property, and should be filled out and signed by both the landlord and tenant/s at the start of the tenancy.
  6. Bond Lodgement/RefundForm– This Form must be completed and signed by both the landlord and tenant/s (Use a black or blue pen when filling out the information).
  7. Maintenance Form –Formal request for maintenance by the tenant/s to the landlord. Landlords can download this form from our website.
  8. Rent Receipt Form – If you receive rent in cash or do not keep specific records you will need to provide tenant/s with a rent receipt every time they pay. It must comply with the conditions outlined in Step .
  9. Security Receipt Form – When you receive both the security and bond deposit you should provide the tenant/s with receipts to formally acknowledge the payment.
  10. Notice of Entry – Formal notice to the tenant/s of your intent to enter.
  11. Notice of Rent Increase – Notice to tenant/s of an increase to the weekly rent.
  12. Notice of Lease Renewal – Notice to renew the tenancy agreement.
  13. Notice of Non-renewal – Notice to not renew the tenancy agreement.
  14. Form 2 – Notice to tenant/s to remedy breaches of a fixed term tenancy agreement and or to vacate the property.
  15. Form 3 – Notice to tenant/s to end a periodic tenancy agreement.
  16. Form 4 – Notice to landlord/s to remedy breaches of a fixed term tenancy agreement.
  17. Form5–Notice by tenant/s to remedy breaches of a periodic agreement by the landlord.
  18. Form 6 – Notice to tenant/s and 3rd parties of abandoned goods.
  19. Form 7 – Application to the tenancies tribunal to resolve a dispute.
  20. Form 8 – Application to the Tenancies Tribunal to terminate a tenancy where the tenant/s conduct is unacceptable.
  21. Smoke alarm booklet – Outlines conditions and requirements on smoke alarms.

Step 34–Additional conditions:

Certain conditions cannot be enforced by the tenancy agreement: