This information has been gathered from various industry resources including REINSW, Australian Property Monitors, Local Community Councils and City of Sydney websites to assist you in your knowledge about the property market. The content is provided as a general overview for information purposes only and is not legal advice
Frequently Asked Questions: Leasing a Property
What do I have to show when I am applying to lease a property ?
What is a Tenancy Agreement ?
What is a Reservation Fee ?
What is a Rental Bond ?
When can I move in ?
Can I change locks and keys ?
What are my privacy rights ?
What are by-laws ?
What happens when a lease is terminated ?
As a landlord, what do I have to sign ?
What are the benefits of engaging a property manager ?
How much should I charge for rent ?
What kinds of tenants should I look for ?
What happens if I have a dispute about my lease/tenant ?
How much am I obliged to spend on maintenance ?
Who pays for rates, utilities and bills ?
As a tenant, where can I source information about renting ?
What do I have to show when I am applying to lease a property ?
When you visit an estate agent and apply to rent a property, be prepared to provide references and information about yourself and other intending occupants. As agents are entrusted with the management of the landlord's property, it is essential that they check a tenant's credentials before the property is let. Generally there is a 100 point check procedure similar to when you open a bank account.
What is a Tenancy Agreement ?
A Tenancy Agreement allows a tenant to take 'possession' of a property for a limited period of time on certain conditions including the payment of rent.
The Tenancy Agreement is a legally binding contract in which both parties agree to abide by the conditions set out in the agreement. Make sure that you read the Agreement in full and are familiar with all of the conditions included in it.
When you sign the Tenancy Agreement you will receive a copy so that you have a record of each party's rights and responsibilities. You will also receive a Condition Report setting out the condition of the property at the beginning of the tenancy, which you should check for accuracy and return a signed copy to the agent within 7 days.
What is a Reservation Fee ?
A reservation fee is an amount of money (no more than one week's rent) that is sometimes paid to reserve the premises while an application for tenancy is under consideration. However payment of this fee does not guarantee your application will be successful. If your tenancy does not go ahead this amount will be refunded. If your application is successful and you choose not to proceed, this amount will be forfeited to the landlord.
What is a Rental Bond ?
When can I move in ?
The Tenancy Agreement will state when you are able to take possession of the property (ie the day on which your tenancy commences). You will be required to pay rent from that date even if you move into the property later. Rent may be paid on a mutually agreeable basis (ie weekly, fortnightly or monthly). If in unforeseen circumstances you have to vacate before the Tenancy Agreement is due to end, contact the agent who will explain your obligations in accordance with the lease agreement.
Can I change locks and keys ?
The changing of locks or other security devices are alterations which should not be conducted without the written consent of the landlord. Keys held by the agent are for their use in case access to the property is required in an emergency.
What are my privacy rights ?
You have the right to use and occupy your home without unreasonable interference from the landlord or their agent. However they do have the right of access when it is necessary to inspect your home or carry out repairs, so long as you are given reasonable notice. They can also show your home to prospective tenants after notice terminating your tenancy has been given and to prospective buyers if the property is for sale.
The Tenancy Agreement allows access between certain times on any day except Sunday or public holidays as long as it is mutually convenient. Access may be obtained at any time however, with your consent or in an emergency.
What are by-laws ?
By-Laws under the Strata Schemes Management Act will apply to any tenant who occupies a Strata Title home unit. These by-laws include restrictions on car parking facilities and the use of common property. The Tenancy Agreement contains the by-laws and any specific rules or regulations affecting the use of the units.
What happens when a lease is terminated ?
The Tenancy Agreement provides for the notice you must give before vacating the property. In preparing to leave make sure that the property will be left clean. Inside windows, blinds, walls and woodwork should be cleaned. Pay particular attention to the stove, oven and griller in the kitchen. Special attention should also be paid to cleaning the bathroom when preparing to vacate. All appliances and fittings should be left in good working order for the next occupant.
Make sure all of your belongings are removed from the property and that any rubbish is removed. Arrange for an inspection of the premises by the agent, leave a forwarding address and finally return all keys.
As a landlord, what do I have to sign ?
When you engage the services of a real estate agent to let and manage your investment property, your agent is required by law to have you sign your instructions in the form of an Agency Agreement. The Real Estate Institute of NSW produces a standard Letting Agency Agreement and Management Agency Agreement.
What are the benefits of engaging a property manager ?
There are many advantages in engaging a professional to manage your property. The main one is peace of mind - knowing your investment will be managed professionally. A managing agent knows the market and ensures the maximum return on your investment. In using a managing agent you will avoid direct confrontation with the tenant and, should there be a need for representation before the Residential Tenancies Tribunal, your managing agent is able to act on your behalf.
Managing agents have a thorough understanding of the Residential Tenancies Act, the Retail Tenancies Act and the Strata Schemes Management Act. Their skill and expertise will reduce the risk of non-compliance with these Acts and save you from facing the possibility of severe financial penalties through non-compliance.
How much should I charge for rent ?
Consider keeping the rent slightly less than the current market rate. This will keep vacancies to a minimum, and encourage tenants to pay fully and on time.
What kinds of tenants should I look for ?
What happens if I have a dispute about my lease/tenant ?
The Residential Tribunal hears and decides on applications for orders from tenants and landlords. It is an inexpensive and informal way of resolving disputes. The application fee is $20, and there is no fee if you are a pensioner or a full-time student. If you think you want to take a matter to the Tribunal, remember that there are time limits for some applications. The Tribunal is located at Level 12, 175 Castlereagh St , Sydney 2000. Contact them on (02) 9641 6400, or outside the Sydney area on Freecall 1800 451 292.
How much am I obliged to spend on maintenance ?
The Residential Tenancies Act demands that you, as the landlord, are responsible for 'fair wear and tear'. The property must be fit for your tenants to live in. Apart from your legal obligations, by keeping your rental property in good shape you will be able to charge a higher rent and avoid disputes with tenants. Your tenants will also be more inclined to keep their home in good shape if they find it that way.
What do I have to show when I am applying to lease a property ?
What is a Tenancy Agreement ?
What is a Reservation Fee ?
What is a Rental Bond ?
When can I move in ?
Can I change locks and keys ?
What are my privacy rights ?
What are by-laws ?
What happens when a lease is terminated ?
As a landlord, what do I have to sign ?
What are the benefits of engaging a property manager ?
How much should I charge for rent ?
What kinds of tenants should I look for ?
What happens if I have a dispute about my lease/tenant ?
How much am I obliged to spend on maintenance ?
Who pays for rates, utilities and bills ?
As a tenant, where can I source information about renting ?
What do I have to show when I am applying to lease a property ?
When you visit an estate agent and apply to rent a property, be prepared to provide references and information about yourself and other intending occupants. As agents are entrusted with the management of the landlord's property, it is essential that they check a tenant's credentials before the property is let. Generally there is a 100 point check procedure similar to when you open a bank account.
What is a Tenancy Agreement ?
A Tenancy Agreement allows a tenant to take 'possession' of a property for a limited period of time on certain conditions including the payment of rent.
The Tenancy Agreement is a legally binding contract in which both parties agree to abide by the conditions set out in the agreement. Make sure that you read the Agreement in full and are familiar with all of the conditions included in it.
When you sign the Tenancy Agreement you will receive a copy so that you have a record of each party's rights and responsibilities. You will also receive a Condition Report setting out the condition of the property at the beginning of the tenancy, which you should check for accuracy and return a signed copy to the agent within 7 days.
What is a Reservation Fee ?
A reservation fee is an amount of money (no more than one week's rent) that is sometimes paid to reserve the premises while an application for tenancy is under consideration. However payment of this fee does not guarantee your application will be successful. If your tenancy does not go ahead this amount will be refunded. If your application is successful and you choose not to proceed, this amount will be forfeited to the landlord.
What is a Rental Bond ?
A rental bond is paid by a tenant as a form of security for the landlord against breaches of the Tenancy Agreement. The amount of bond to be paid varies according to the type of property involved, and can be summarized as follows:
- Four weeks rent for unfurnished premises
- Six weeks rent for fully furnished premises with a rent of less than $250 per week
- Unlimited if the property is fully furnished and the rent is more than $250 per week.
You will be required to sign a bond lodgement form to be lodged with the Rental Bond Board. Upon vacating the property, providing all is in order, the agent will sign a claim form so that you can have the bond paid back to you. If all or part of the bond is to be paid to the landlord (eg for arrears in rent, cleaning or repairs), and you agree to the amount deducted, you should sign the form claiming repayment accordingly.
When can I move in ?
The Tenancy Agreement will state when you are able to take possession of the property (ie the day on which your tenancy commences). You will be required to pay rent from that date even if you move into the property later. Rent may be paid on a mutually agreeable basis (ie weekly, fortnightly or monthly). If in unforeseen circumstances you have to vacate before the Tenancy Agreement is due to end, contact the agent who will explain your obligations in accordance with the lease agreement.
Can I change locks and keys ?
The changing of locks or other security devices are alterations which should not be conducted without the written consent of the landlord. Keys held by the agent are for their use in case access to the property is required in an emergency.
What are my privacy rights ?
You have the right to use and occupy your home without unreasonable interference from the landlord or their agent. However they do have the right of access when it is necessary to inspect your home or carry out repairs, so long as you are given reasonable notice. They can also show your home to prospective tenants after notice terminating your tenancy has been given and to prospective buyers if the property is for sale.
The Tenancy Agreement allows access between certain times on any day except Sunday or public holidays as long as it is mutually convenient. Access may be obtained at any time however, with your consent or in an emergency.
What are by-laws ?
By-Laws under the Strata Schemes Management Act will apply to any tenant who occupies a Strata Title home unit. These by-laws include restrictions on car parking facilities and the use of common property. The Tenancy Agreement contains the by-laws and any specific rules or regulations affecting the use of the units.
What happens when a lease is terminated ?
The Tenancy Agreement provides for the notice you must give before vacating the property. In preparing to leave make sure that the property will be left clean. Inside windows, blinds, walls and woodwork should be cleaned. Pay particular attention to the stove, oven and griller in the kitchen. Special attention should also be paid to cleaning the bathroom when preparing to vacate. All appliances and fittings should be left in good working order for the next occupant.
Make sure all of your belongings are removed from the property and that any rubbish is removed. Arrange for an inspection of the premises by the agent, leave a forwarding address and finally return all keys.
As a landlord, what do I have to sign ?
When you engage the services of a real estate agent to let and manage your investment property, your agent is required by law to have you sign your instructions in the form of an Agency Agreement. The Real Estate Institute of NSW produces a standard Letting Agency Agreement and Management Agency Agreement.
What are the benefits of engaging a property manager ?
There are many advantages in engaging a professional to manage your property. The main one is peace of mind - knowing your investment will be managed professionally. A managing agent knows the market and ensures the maximum return on your investment. In using a managing agent you will avoid direct confrontation with the tenant and, should there be a need for representation before the Residential Tenancies Tribunal, your managing agent is able to act on your behalf.
Managing agents have a thorough understanding of the Residential Tenancies Act, the Retail Tenancies Act and the Strata Schemes Management Act. Their skill and expertise will reduce the risk of non-compliance with these Acts and save you from facing the possibility of severe financial penalties through non-compliance.
How much should I charge for rent ?
Consider keeping the rent slightly less than the current market rate. This will keep vacancies to a minimum, and encourage tenants to pay fully and on time.
What kinds of tenants should I look for ?
It is important to seek references from your tenants. Look for evidence that your tenants:
- can afford the weekly rent
- have the financial security to keep payments up for the term of the lease
- will maintain the property responsibly
It is also a good idea to choose tenants who will stay in the property over a long term. This saves the trouble and expenses incurred when you get new tenants in, like advertising.
What happens if I have a dispute about my lease/tenant ?
The Residential Tribunal hears and decides on applications for orders from tenants and landlords. It is an inexpensive and informal way of resolving disputes. The application fee is $20, and there is no fee if you are a pensioner or a full-time student. If you think you want to take a matter to the Tribunal, remember that there are time limits for some applications. The Tribunal is located at Level 12, 175 Castlereagh St , Sydney 2000. Contact them on (02) 9641 6400, or outside the Sydney area on Freecall 1800 451 292.
The Department of Fair Trading provides a free information service for tenants. For advice on your rights and obligations under the law call (02) 9377 9100 or Freecall 1800 451 301.
How much am I obliged to spend on maintenance ?
The Residential Tenancies Act demands that you, as the landlord, are responsible for 'fair wear and tear'. The property must be fit for your tenants to live in. Apart from your legal obligations, by keeping your rental property in good shape you will be able to charge a higher rent and avoid disputes with tenants. Your tenants will also be more inclined to keep their home in good shape if they find it that way.
Who pays for rates, utilities and bills ?
- The landlord pays the council rates and the water rates.
- The tenant pays electricity, gas, and phone bills.
- You are under no obligation to provide a telephone connection and TV antennae, but these may be expected by tenants and will increase the value of your property.
How much should I charge for rent ?
The Department of Fair Trading provides a free information service for tenants:
- For advice on your rights and obligations under the law, call (02) 9377 9100 or freecall 1800 451 301
- For advice on rental bonds, call (02) 9377 9000 or freecall 1800 422 021
- You can also write to Locked Bag 19, Darlinghurst NSW 2010 or go to Level 4, 234 Sussex St, Sydney NSW 2000.
- For general information on renting, you may contact your nearest Fair Trading Centre on 13 32 20
- The Tenants' Advice and Advocacy Services can also help: check your White Pages for your nearest office.
More assistance is available by calling the Tenants Union Hotline on (02) 9251 6590