Imagine it:
You’ve taken the plunge and bought a neat lock-up-and-go to supplement your retirement income.
But where to start?
You know that the legal and administrative side of property management can be challenging, especially for the first-time landlord.
Don’t worry, you’re not alone. With your questions answered, you’ll soon be welcoming your first tenant and making your investment work for you.
Ready to become a landlord?
Managing your own rental property:
- Requires administrative know-how;
- Demands legal compliance;
- Requires reference and credit checks;
- Can be time consuming.
While estate agencies do charge a management fee, handing a property over to a reputable agent has significant benefits and fewer headaches in the long-run.
Why?
The agency will:
- Advise you on the market-related rental for your property;
- Show and advertise your property;
- Check prospective tenants’ credit and references;
- Draw up a lease agreement;
- Collect the tenant’s deposit, and invest it appropriately;
- Handle Collect? rental payments each month;
- Ensure that the property is maintained and handle any inspections and complaints on your behalf.
Find out more about leasing through an estate agency here, or give one of our rental partners a call and we’ll walk you through the process.
Do I have rights as a landlord?
Yes, you do! But, so do your tenants.
The A-Z of legal requirements is contained in the Rental Housing Act. It’s a compact (14-page) document that spells out the rights and responsibilities of both landlord and tenant.
In a nutshell, this includes:
- Tenant rights, and landlord rights;
- What should be contained in a lease agreement or rental contract;
- Rules for property inspection;
- Payments and deposits;
- Lease and notice periods;
- Annual increases; and
- Handling of disputes and legal action.
The Act was amended in 2014 to provide clarity and extra legal protection for both parties through the Rental Housing Tribunal where disputes can be mediated and settled.
What are my rights?
As a landlord, you have the right to:
- Decide the rental amount;
- Receive regular and timely payment of rent;
- Request a reasonable deposit;
- Determine the length of the lease period;
- Determine, within reason, the ‘house rules’ the tenant must comply with;
- Recover unpaid rent;
- Terminate the lease on fair grounds;
- Claim compensation for damage to the property;
- Repossess the property after obtaining a court order.
Your responsibilities as a landlord
The ‘catch’ is that property management is a little more complicated than finding a tenant and waiting for a payment to clear your account each month.
Your rights as a landlord are balanced (held in check) by a number of responsibilities, which are in place to protect both you and your tenant.
As a landlord, you’re responsible for:
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Doing your research
Deciding on a reasonable amount of rent needs research, as does advertising the property, and screening prospective tenants for background and credit checks.
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Ensuring that the property is ‘habitable’
General wear-and-tear aside, this means that the property should be structurally sound and in a good state of repair.
On incoming and outgoing inspection, a list of faults or damages to the property must be noted and attached to the rental agreement in event of a dispute.
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Keeping your payments and documents in order
Letting a property requires some administration. Most important is the lease agreement, which should be drawn up and agreed on by both parties.
Tenants must be given a receipt for every payment made, including the deposit and any additional payments for services or accounts.
Any arrears in payment need to be documented, as does damage to the property and any necessary repairs.
Depending on who is managing the property, the responsibility of managing the tenant’s deposit rests with either the agent or the landlord. By law, deposits should be invested in an interest-bearing account, and the statements made available to the tenant on request.
Read about rental deposit rules here.
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Treating your tenants fairly
While landlords have rights, so do their tenants.
This means that as a landlord you must comply with the conditions outlined in the Rental Housing Act, including:
- Respecting the tenant’s right to privacy,
- Not unfairly discriminating,
- Abiding by the terms of the rental contract,
- Giving fair notice in terminating the contract, and
- Performing necessary maintenance on the property.
