It is not a legal requirement to use a property manager, and landlords do have the option to self-manage, in fact, according to the Real Estate Institute of Australia (REIA), 22.7% of rental properties are self-managed by landlords.
But if you are thinking of self-managing, it is imperative you adhere to the law and you are up-to-date with relevant legislation and regulations; as well as some occupational health and safety laws for buildings, there are a few requirements when it comes to lodging of bond monies, giving notice period for inspections, rental renewals or ending a tenancy, to name a few.
Property legislation and regulations are in place to protect both the landlord and the tenant, for many reasons; properties need to be safe to live in, and there needs to be a clear understanding of what is expected by both parties.
Acts & Regulations To Follow:
When learning about Acts and Regulations for Property Management in Real Estate, more than 24 are highlighted! These are the two main ones for landlords and tenants:
• Residential Tenancies Act 2010
• Residential Tenancies Regulation 2019
It's also worth noting, there may be some local council regulations, and strata and community titled properties may also have some by-laws tenants will need to be aware of. For example, in relation to allowing pets and some titled properties do not allow hanging washing on balconies.
Legal Paperwork:
Some of the required paperwork is standard, and there are templates available for legal documents, such as such as lease agreements and bond lodgement forms.
But you will need to also have paperwork to demonstrate to your property is a safe place to live, such as annual testing and battery replacement for fire alarms and a certificate of compliance for pools and spas. These will need to be from a qualified specialist.
Common Disputes:
Inexperienced self-managed landlords often come undone when it comes to disputes. Common disputes between landlords and tenants are often over rental payment, lease conditions, and bond claims. If these end up going to a tribunal, the judge will consider whether the landlord has followed the law in taking the right steps and can provide the correct records to show this.
For example, in order to get an eviction demand, you need to show you have sent the required reminders, notices and applications at the correct intervals. Failure to provide this necessary paperwork may result in the judge deciding the tenant can stay in the property.
As well as the landlord abiding by the right rules and regulations, and ensuring the property is safe, finding the right tenants who will look after your property and treat it with respect, and pay the rent on time is a key part to avoiding disputes in the first place!
We do all the training to ensure your property is legal and your paperwork is in order, and we work hard to ensure your property is leased with reliable and good tenants. We also take the stress out of marketing, managing and running your property and we make sure your asset is cared for