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Renting unit out without agent

Discussion in 'Real Estate' started by Adamzski, 6th Apr, 2008.

  1. Adamzski

    Adamzski Member

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    Im going to rent my unit out without an agent, anyone have any links to docs or advice on this?

    I know I shouldnt but the tenant has agreed to give me the bond money and not have me send it in to the bond board, whats the legalities of this?

    I probably will end up making a proper lease and send the money in to bond board can I get like a template lease of the net somwhere?
     
  2. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    http://www.fairtrading.nsw.gov.au/realestaterenting/tenantslandlords/

    You have to send it to the Bond Board.

    See the link above.

    Mark
     
  3. Alan

    Alan Well-Known Member

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    Go to a reasonable size Newsagent and ask for a 'Lease Pack'.

    In it you'll get lease, condition reports, bond lodgement/claim forms and also a booklet you are required to give the tenant. All for about $13 or so from memory. As an absolute minimum, read the booklet!
     
  4. Jacque

    Jacque Team InvestEd

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    Hi Adam

    I second Mark's advice- do the right thing with the bond and pick yourself up a leasing pack from the local newsagency or PO- simple and easy. Just follow the instructions.

    A tip or two from someone who's self-managed IP's on and off over the years:

    Take photos and add to the initial condition report
    Conduct quarterly inspections
    Don't become so friendly with the tenant that you can't ask for a rental rise
    Be prepared and know the law

    Best of luck :)
     
  5. Adamzski

    Adamzski Member

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    Thanks, yeah I will be sending thebond off, not worth the hassel,

    Will be brabbing a lease pack tomorow, cheers
     
  6. Adamzski

    Adamzski Member

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    Im wondering what lease term I should ask for? leaning towards 6 months as it seems that rents are still rising and there is plenty of demand.
     
  7. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I would usually go for 12 months. You don't want to be changing over tenants frequently - the costs and lost rent really eat into your returns.

    The only reason I would go for less is if I wanted to get the lease renewal to fall during a peak letting period (eg Jan/Feb), and even then I would make sure the tenant understands this and knows that the following term will be 12 months.

    Unless they are only there short term (eg students), tenants usually do like some certainty.
     
  8. lura

    lura Active Member

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    Lease options

    I agree, if you allow shorter tenancies - the cost of finding new tenants and wear and tear on your IP will far outweigh the benefits of a few dollars more.

    If you are concerned about increasing the rent - apart from the inital period, you will be able to insert rent clauses into the lease. However, you will need to follow these guidelines:-

    1. There must be no more than one rise per 6 monthly period. Some States have it implemented in law others just guidelines - but you do not want to have to go before a tribunal on this matter.
    2. The rent increase must be deemed reasonable - not a huge jump from the original and in line with the market. You will need to prove what market rate for like property is if you were brought before a tribunal should the tenant complain about "excessive increase".

    and 3. Make the tenant aware of the rent increase - I know it will be written into the lease renewal - but you need to back this up with a discussion.

    If you have a good tenant, you should consider the cost of losing them compared to a big rent increase. Whatever you do though - follow the law: protect the person, protect the property, protect the income - in that order.
     
  9. mmerlin

    mmerlin Member

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    That's a very interesting point Lura. I had never considered "wear and tear" being increased by tenants moving in and out, but come to think of it, pretty much every time I've moved houses at least one wall gets dinged badly enough to need repairs (or at the very least a repaint!)
     
  10. Adamzski

    Adamzski Member

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    Yep very good point, it was my PPOR before leasing it and on my way out I put a decent scrape on the loungeroom wall with a table i was pulling apart