The next thing we need to do is draw up a tenancy agreement for both ourselves to sign on your behalf and your new tenant to sign.
There are a few other things to do too, including these 5 essential steps to take when starting your rental agreement:
1 - 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. Us, 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 three 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 week or fortnight, depending on their preference, and so on.
3 - 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 RTA within 10 business days upon receipt. For general tenancies, the law says if the rent is $700 or less per week, the maximum bond amount is 4 weeks rent. If the weekly rent is higher than $700, the amount of bond should be negotiated between the property manager/owner and tenant. The law gives no maximum amount where the weekly rent is higher than $700. But for the most part, 4 weeks rent is generally taken as bond. It's also worth noting a bond covers the tenancy of the whole property, not each individual tenant
4 - 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. An agreement must be used even if it is between family or friends. A tenant without a written agreement still has legal protection. A tenant must be given the tenancy agreement before paying any money or being committed to the tenancy.
5 - A Tenancy Agreement Must Include:
• Name and address of tenant and property manager/owner
• Start and end dates (or state if it is periodic)
• The rent and how it should be paid (e.g. direct deposit)
• Standard terms (what the tenant and property manager/owner can and cannot do)
• Any special terms (these should be agreed in advance, e.g. dogs are allowed but must be kept outside)
• 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. We would copy all tenant keys, swipes and remotes prior to the key collection, the tenant signs and acknowledges acceptance and we can now ensure these same sets are returned at the end of the tenancy.