Step by step guide to renting

Homburg Real Estate want to make it easy for everyone to enjoy the benefits of Renting.

1. Marketing your Property

A clear understanding of the local market is crucial. We can make the best decision on the leasing of your property by processing the most comprehensive information possible. Translating the latest statistics into a clear, accurate reading for each individual property allows us opportunities for marketing and customer targeting. Clear and decisive action identifies the correct market rent and innovative marketing delivers motivated tenants. We will work with you to develop, secure and lodge your property advertising using a mix of traditional advertising with some more innovative techniques.

2. Choosing the Right Tenant

It is critical that each potential tenant’s credentials be checked before their application is accepted. Financial serviceability checks on each application are conducted and tenants are required to provide references, personal information, employment/income details, identification documentation and rental history by way of completing our Tenancy Application Form.

3. Property Condition Reports

A full Property Condition Report with photos is carried out by your Property Manager to ensure the condition of your property is recorded in detail prior to any tenant moving in. If your property is furnished we will itemise all chattels and the inventory will form part of the property condition report. Your tenant is issued with two copies of the report at the time of signing their Tenancy Agreement and they then have two weeks to dispute or make any changes to the report. The finalised report must be returned to our office within the 14 day time period allowed. Their failure to return the document will see any amendment to the report un-noted and the original document being legally binding on the tenant.

4. Tenancy Agreement

There are two types of residential tenancy agreements; FIXED TERM – a specific term or period of tenancy as agreed between both parties (landlord and tenant). It contains a start and end date and the terms and conditions of the lease can be enforced for the term contained within the fixed term.

The tenant is not required to give a period of notice of their intention to vacate at the end of a fixed term tenancy. Vacant possession is all they are legal required to provide at lease end. A fixed term lease is guaranteed to the tenant (except when a person with superior title takes possession – e.g. if the mortgagee takes possession of a property, they can issue instructions for the guarantee to be revoked)

PERIODIC – an agreement (written, verbal or implied) for a non-specific time period and only ends when either the landlord or tenant serves the other with the appropriate notice. Landlord terminates with a Form 3 (landlord request for vacant possession)

Tenant terminates with a Form 5 (tenant request for vacant possession)

Termination periods differ for both parties. A tenant is required to give the landlord 21 days notice and is not required to provide a reason.

The landlord must allow 60 days notification to the tenant provided that the criteria outlined in the Residential Tenancies Act is satisfied and the reason for termination is disclosed. Where the criteria cannot be satisfied and a reason for termination is not disclosed, the landlord must provide 90 days notification.

It is important to remember, that termination of a periodic tenancy must be in the prescribed format.

5. Security Bond

A security bond is an amount of money paid by your tenant, lodged with Residential Tenancies Commission and is held as a guarantee against breaches of the residential tenancy agreement. The bond is held for the duration of the tenancy.

For rental properties $250 per week and under, the landlord cannot ask for more than the equivalent of four weeks rent as bond. For rent over $250 per week, a landlord can ask for the equivalent of six weeks rent as bond.

6. Rental Payments

Besides paying a bond at the beginning of the tenancy, a tenant can be required to pay the first 2 weeks rent. If two weeks rent is paid at the start of the tenancy, no rent is due until those two weeks have passed. Besides a security bond and two weeks rent in advance, the landlord cannot ask for any other moneys at the start of the tenancy. Homburg Real Estate deposit rental income monthly into your nominated bank account. By request, we can arrange a mid month payment to suit your requirements.

7. Routine Inspections

Every rental property under our management is inspected on a regular basis (approximately every 16 weeks). Tenants are given written notice prior to an inspection. Routine Inspections are valuable to capture any maintenance items that have not been reported and to ensure the tenant is abiding by the terms of the tenancy. A written report accompanied by photos is sent to you for your records.

8. Maintenance

Your tenant is required to report any items that are in need of repair in writing – unless the required maintenance is of an urgent nature. When we receive such a request, we will always try to contact you. In the case of an emergency, this may not be possible, and we will authorise these repairs on your behalf. The cost associated with the repairs will be deducted from rental income. If maintenance is required due to neglect or by any fault of the tenant, we will follow up re-imbursement for you.

9. Termination of Tenancy

When your tenant gives notice to vacate, we will write and inform you of their intentions. At this time we will commence advertising unless your circumstances have changed and you do not wish to re-let the property. We will write to your tenant acknowledging their vacating notice and provide them with information on preparing the property for their final inspection. This will be conducted immediately after vacating the property. Bonds will be released after the property manager is satisfied with the condition of the property and all rent is fully paid.

10. Re-letting your Property

After we have obtained your authority our work begins again!