Property can make a great investment. However, there are risks involved in renting your property. Property owners often struggle with finding and keeping good tenants. Its worth making yourself aware of the property law in your state or territory so that you know how to deal with issues that may arise when renting your property.
Why are there issues?
Disputes about end-of-lease bond repayments demonstrates that there is a gap between landlords’ expectations and tenants’ responsibilities. Often, landlords have emotional attachments to their properties.
Engaging an agent
When landlords don’t engage a real estate agent to manage their rental properties, emotional issues can influence what the landlord perceives as reasonable wear and tear, cleanliness, garden maintenance, and a host of other elements. Property agents’ fees may be tax-deductible, so it might work best for you to use an agent to manage your property.
Tenant’s responsibilities under property law
Whether a property is ‘clean’ can be a difficult issue because cleanliness is subjective.
A tenant needs to inform the landlord if there are issues with the property. For example, the Victorian Civil and Administrative Tribunal dismissed a claim by a tenant against a landlord for a pigeon infestation. The landlord had not been informed of the infestation; therefore, there was no breach of duty.
How to select a property manager
If you have a rental property, it is worth considering the following when selecting a real estate agent to manage your property.
- The percentage of properties in arrears for the agent. You could consider this a performance indicator.
- The percentage of rental payments kept aside for maintenance.
- Common tenancy disputes with the agency, and the reasons for them.
Its important to shop around, negotiate, and check reputations. Make sure you find an agent that you trust and can communicate with.
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