You’ve had people view the property, you’ve done the checks and you’ve found the perfect tenant – what happens next?

Well, the next thing is, you need to draw up a tenancy agreement for both you and your tenant to sign. And there are a few other things to do too.

Here are 5 essential steps to take when starting your rental agreement:

• Ingoing Condition Report

A condition report records the general condition of the property, room by room, including fixtures and fittings. All damage, including minor damage, should be noted and described on the report. You or your tenant can take photos or videos to support the condition report.

A landlord (or landlord’s agent) must fill out a condition report before a tenant moves in. They must give two paper copies, or one electronic copy, to the tenant either before or at the time the agreement is given to the tenant to sign.

Tenants must then complete their part of the condition report and return a copy to the landlord or agent within seven days of moving in. Tenants should also keep a copy of the condition report.

The report should be filled out with as much detail and accuracy as possible. If there is a dispute about missing items or damage later down the track, the condition report can be used as evidence.

• 2 weeks rent Up front

The two weeks rent pays for your tenant’s first fortnightly period. Two weeks later their rent is due again; that rental payment pays rent for the following fortnight and so on.

• 4 weeks bond

The bond is money a tenant pays as security in case they do not follow the terms of the tenancy agreement. It is paid at the start of the tenancy, and it must be lodged with the NSW Fair Trading Rental Bonds Section. A rental bond cannot be more than four weeks rent, and higher bonds cannot be charged for tenants with pets or children.

It’s also worth noting a bond covers the tenancy of the whole property, not each individual tenant.

• Draw up the lease

A residential tenancy agreement is a legal, binding agreement between a landlord and a tenant. It must be in writing and landlords can be fined if this is not done. Unlike signing on the dotted line when purchasing a property, there is no cooling-off period when signing a tenancy agreement.

The lease is vital in the letting process; it ensures both you and your tenant fully understand your rights, and it also outlines who is responsible for what. And most importantly you are adhering to the latest legislation.

Legally, a copy of all required paper work is given to the tenant. The landlord or agent cannot charge a tenant for their copy of the agreement or the costs associated with filling it in.

• Keys

The landlord or agent must give each tenant named in the agreement a set of keys or other opening devices (e.g. swipe cards or garage remote controls) or information (such as an access code), so the tenant can access any part of the rented property or common property.

This can include keys to any door, window, garage or letterbox, and you cannot charge the tenant for this.

For more information about starting a tenancy, visit the NSW Office of Fairtrading website.

The easiest way for peace of mind that you are adhering to all tenancy legislation is to use a quality agent. That way, you’re sure all the ‘i’s are dotted and the ‘t’s are crossed.

We’ve been managing property for over 40 years, and our online landlord portal helps keep all important documents in one place. Get in touch and see how our property management services can make your life easier and free you up to do more of the things you want to do.

Simply give us a ring on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office for a chat.

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