Renting a property - Stacks property lawyers
Renting a property? Whether you’re a landlord or a tenant, Stacks has specialist advice and services for you.
If you’re a landlord, renting out your property to tenants is a great way to provide you with an extra monthly income, and to help pay off any outstanding loans against the property. But there may be legal responsibilities that you are unaware of, as well as issue that may arise in the course of the tenant-landlord relationship. Similarly, if you’re a tenant, you should be fully aware of your rights and what to do in the case of any disputes.
Stacks Law Firm has many years of experience in legal issues surrounding the renting of all types of property, both residential and rural. We can help you understand the rental process and assist you with any issues that may arise throughout.
If you are a landlord looking to rent out your property, we can draw up the lease and advise you about what are reasonable terms and conditions. If you are a tenant, we can look at the lease and explain the terms to you in everyday English, including your obligations and rights.
The process for renting residential property
When you rent a residential property, whether it be a house or unit, you will generally need to go through a real estate agent. It is important to understand the laws that govern your property rental.
The Residential Tenancies Act is the legislation that sets out the rules and obligations of both the landlord (the property owner) and the tenant (the renter).
In particular, you should be familiar with the following:
- The Residential Tenancy Agreement - You will have to sign this when you lease a residential property. This is a legal contract between the landlord and the tenant. It will often include certain requirements of the tenant such as paying for water usage or not having certain pets. You agree to these requirements when you sign the contract. Whoever signs the lease is generally liable for the period of tenancy in the contract, even if they move out of the property before the end of the period, unless the landlord agrees to tenancy changes.
- The condition report - This details what condition the property is in such as whether there are marks on the walls, carpet stains etc. It is important that you complete this report before you move in, in order to avoid any disputes at the end of your tenancy.
- The bond - When you rent a property you will generally have to pay a bond, which is deposited with NSW Fair Trading. The bond amount can vary, but there are limits on how much it can be. This is the landlord’s safeguard in the event that the property is damaged during the tenancy period.
- The term of the lease - When you sign the contract you commit to a certain period of time, such as 12 months, known as the "fixed period". Once this expires, if you do not sign another contract then the agreement becomes a "continuing agreement".
- Smoke alarms - All residential properties must now have smoke alarms fitted in the vicinity of the bedroom(s). The landlord is responsible for installing the alarm and the tenant is generally responsible for replacing the battery.
Renting rural property
A rural lease is basically an agreement that allows a tenant to hire or rent land for a fixed period of time. The tenant has exclusive possession of the land and receives all of the income derived from working off the land. Usually, the landlord will own the land, buildings and fences, and be responsible for repairs, paying rates and insurance on fixed assets. The tenant will generally supply their own machinery, labour and livestock, and cover all of the operating costs.
In order to reduce the risk of a dispute and protect the interests of landlord and tenant, it is important that the agreement be in written form. Rural leases typically run from three to five years and can be registered with the Department of Lands. The lease agreement should clearly show the duties and obligations of the tenant and landlord, such as stating a maximum crop area, or who is responsible for the control of noxious weeds.
Sharefarming agreements
This is different to a rural lease because exclusive possession is generally not given to the sharefarmer. Instead, they operate the farm more as a licensee, and the landowner and the sharefarmer share the profits/produce from the farm. The financial split will depend on the terms of the agreement. Share agreements must be put in writing and signed by both parties. This is an important safeguard in the event of future disputes. The agreement should clearly show who provides what in the way of assets (eg.money), the obligations of each party, the financial split of the income, and details about the operations and management of the farm.
Need assistance with renting a property? Call us today
