people Rent property rather than purchase. Many companies and businesses rent
commercial property rather than own their own. Renting property is a process that
can become difficult. It is also a process where people can make mistakes.
is very important to do this properly and seek advice from experienced professional
people to ensure that you do not end up with difficulties.
brochure which is produced by the Real Estate Industry Association Inc is designed
to assist people by making them aware of some of the more important aspects of
renting a property.
· LOCATE A PROPERTY
first thing is to loacte the property. The best way to do that is to obtain the
assistance of a real estate agent. You can ask any real estate agent to help you
however we would recommend that you use a member of the Real Estate Industry Association
because he has pledged to abide by the Code of Ethics of the Association. A copy
of the Code of Ethics is available on request from any member's office. Once you
have selected a real estate agent he will assist you with locating a suitable
property for you.
on a Tenancy Agreement or Lease over the property that you are to rent. A lease
drafted by a lawyer is thebest document to have because it covers all contingencies.
You will usually be required to pay for the preparation of the lease by the lawyer
as well as stamp duty on the amount of rent payable over the period of the lease.
A tenancy agreement is a basic agreement that many property owners use to highlight
the main terms for renting a property. You are not required to pay for preparation
of a tenancy agreement. It is not a legal document and is not as specific as a
lease but it does specify some of the responsibilities of the tenant and the property
owner. It is best to have something in writing to clarify the terms of the tenancy.
The real estate agent can help you here.
bond is payable by the tenant to the real estate agent before you are given possession
of the property. The bond is often equal to the rental payable for the property
for one month however the amount of bond payable may be more or less than this
depending on the requirements of the property owner. In most cases the bond is
held by the real etate agent in his trust account. Sometimes the owner might hold
the bond. As the real estate agent is only acting as agent for the property owner
then the owner is entitled to hold the bond if he wishes. The bond is held to
cover any outstanding rental or costs for damages, unpaid utilities etc. If there
is nothing owing at the end of the tenancy then tht bond is refundable in full.
If there are moneys owing then all or part of the bond will be used to cover these.
If any monies remain after the amounts owing are settled then the balance will
NOTICE TO TERMINATE
you wish to terminate the rental and your lease or tenancy agreement enables you
to do so then in most cases you will be required to give one month notice in writing
of your intention to terminate the rental. If you are paying rent monthly then
one calendar month notice means that the rental will cease at the end of the month
following the current month. One calendar month notice is not 30 days from the
date on which the notice is given.
the owner of the property that you are renting is GST registered then you will
be required to pay GST on the rental.
· DUE DATE
most cases where the rent is being paid on a monthly basis the rent is due and
payable on the first day of the month. If your lease or Tenancy agreement specifies
that rents are payable in advance then if the rent is not paid on the first day
of the month then you are in breach of the agreement. It is normal for rent to
be payable in advance rather than in arrears.
· IMPROVEMENTS / ALTERATIONS
is usual for tenants to obtain approval for any improvements or alterations that
they want to undertake in the rented property in advance of undertaking the work.
It is also usual for the owner to have the option to require the tenant, at the
tenants expense, to return the property to its original condition at the end of
the rental period or to keep the alterations / improvements at no cost to the
· MAINTAINING THE PROPERTY
most cases the owner is responsible for maintaining the structures and ensuring
that they are safe. The tenant is normally required to keep the property clean
both inside and outside for most properties except where there are multiple tenants
eg blocks of units and in these cases the owner is responsible for the exterior
and common areas.
you have any further queries please contact a Real Estate Industry Association
Member or your lawyer.