How to start your tenancy the correct way to ensure you’re on track for success!

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The quote ‘start as you plan to proceed’ rings true when managing your own property. 

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It’s certainly not rocket science, and can be an extremely rewarding experience (both financially and personally).

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Get the basics right with The Big 4.

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Each state in Australia has their own government agency and regulatory requirements to comply with, but there are consistent themes regarding the approach to renting out your own property. 

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Starting a lease typically consists of 4 key elements, which have slightly different names depending on which state you are in, but ultimately have a similar intent and outcome.

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1) Guide

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A guide or checklist provides the tenant with what they should know or understand before signing a lease.

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2) Lease

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A residential tenancy agreement (or lease) is the legal contract and terms between the owner and the tenant.

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3) Bond

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A rental bond is a security deposit a tenant pays at the start of a tenancy which is lodged with the state government.

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4) Condition Report

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This report records the general condition of the property, on a room by room basis, and is signed within the first 7 days of the lease by both the owner and tenant.

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Click here for the full state by state breakdown with links to the documents you need. 

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The Lease Agreement

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A Lease Agreement (or Tenancy Agreement) is a legally binding, written agreement between a landlord and a tenant.

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Each state and territory has their own regulations but in general, Lease agreements must include the following:

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• The name and address of the tenant, and the property owner
• The period of the agreement and the dates when the agreement starts and ends (or state that the agreement is periodic)
• Details about how the tenant should pay the rent and how much rent is to be paid
• Details about what the tenant and the property owner or provider can and cannot do, known as the 'standard terms'.
• Any special terms - these should be agreed in advance, e.g. Pets allowed but must be kept outside or carpet cleaning, no smoking etc.
• State if it’s a Fixed Term Agreement - where a tenant/resident agrees to rent a property for a fixed amount of time (for example 6 or 12 months) OR a Periodic Agreement - when a tenant/resident lives there for an indefinite period.

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One of the benefits of the RentBetter Platform is the ability to connect relevant information about your property throughout the management process. 

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If your tenant has applied to your property and you have received the application via the RentBetter Platform, then you can click one button to generate a pre-populated lease. 

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If you already have a tenant and are creating a lease agreement without an application, you can set this up via the lease agreement function.

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Find out more on how Lease Agreements work on RentBetter.

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The Bond

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A rental bond is a security deposit that a tenant pays at the start of a tenancy which is then lodged with the relevant state government agency.

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The bond plays a vital role in providing peace of mind and protection for you as a landlord. Typically you would ask for up to 4 weeks' rent to be held as a bond and it is important that there is a bond in place at the beginning of every tenancy.

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The bond lodgement process is different in each state as there are different rules and regulations regarding bonds. We are here to guide you through this process.

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Getting your Bond Account Set Up:

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Set up your Bond Account online in advance with your local authority so that there are no delays and you're ready when you find a tenant. 

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Sometimes Bond Registrations can take up to two weeks to get set up once you apply online with the state authority so it's wise to get yourself registered ASAP.

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We recommend doing this as soon as you've set up your property ad, so that you're ready to go without delay. 

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Through RentBetter, you can collect rental bond directly from your tenant based on our recommendations according to the rules of your state.

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Your tenant will be able to pay their bond via RentBetter. Their payment status will be shown on your dashboard and you can also upload any bond-related documents for your personal record.

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Find out more how you can manage your Bond on RentBetter.

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The Condition Report

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It’s important to conduct an initial condition report and regular rental inspections of your property. This will allow you to identify any maintenance issues, ensure your tenants are keeping the place in a good condition and maintain the value of your property.

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A Condition Report should be completed at the following times:

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• Entry Report - Completed at the commencement of the tenancy, within the first 7 days.

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• Routine inspections - at intervals throughout the term of tenancy (usually at least twice a year) 

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• Exit (outgoing) Report - At the end of the tenancy

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What to do if you’re not in the same location as your property?

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One of the most challenging tasks when you're self-managing is when you have a property but are not living in the same city or even state as the property - how exactly do you go about conducing Condition Report inspections?

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No, you don't need to go hiring an agent for this don't worry! 

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On RentBetter, it's easy to hire a trusted professional who can complete a condition report or inspection on your behalf. 

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This can save valuable time, ensure that no issues are missed, keep your tenants happy, and provide a stress-free, hands-off option when you’re not able to be (or don’t want to be!) in the location of your property.

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Find out how you can Book a Professional for a Condition Report.

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Use the Documents and Resources Available

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Alongside RentBetter, all the state governments have published compliant documents for you to use, and also provide a support service over the phone for you to ask questions. 

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After familiarising yourself with the ‘Big 4’ documents in your state, if you still have questions, we highly recommend you contact your relevant state government authority. 

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They are there to help remove obstacles and ensure you are meeting your obligations.

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If you need help, don’t be shy to chat to us and ask.

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Download the Self-Management eBook.

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Want to understand how to rent out and self-manage your property? Start here - Your step-by-step guide to renting out your own property will include:

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• How to rent out your property - Six simple steps from advertising your property through to signing a lease and managing rental payments.

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• How to start your lease - State-by-state guide for setting up you lease, collecting bond, conducting a condition report & more.

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• Inspection checklist - Everything you need to do to organise and manage inspections.

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• What to do if a tenant doesn’t pay? - What to do next and which state-based laws apply.

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• How to advertise your property - What to include in your property ad to make it stand out.

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• How to select a tenant - What questions to ask and background checks to make.

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• How to collect rent - Payment schedules, rental ledgers, receipts & more.

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