End of Tenancy Guide for Property Owners
A guide for property owners on everything that follows when a tenancy comes to an end.
A Landlord's Guide on what to do at the End of the Tenancy and everything that follows.
All contracts do eventually have to come to end and it’s no different with Lease or Tenancy agreements. There are a few different reasons that tenancies come to an end, - some even end early, but usually, when a tenancy comes to an end it’s because the term period has ended.
So, what exactly are the steps to take next? You might decide you want to renew the lease with the current occupants or perhaps you just need to find new tenants. With all that in mind, we have put together this guide to walk you through each stage of the end-of-tenancy process.
Renewing the Lease
The lease renewal generally occurs near the end of a fixed-term tenancy agreement. Renewing a lease is usually the preferred option for most landlords depending on their circumstances and the one with the least amount of hassle (and cost) due to the stability it provides.
As long as your tenants are happy to stay and have no problems, you should aim to secure another long-term lease agreement.
- Check the market rates for your property
- Give the required amount of notice to your tenants for intention to renew and details of any rate changes.
- Come to an agreement
- Sign and send the renewed lease agreement to your tenants
Periodic Terms
This is an option should you not want to enter into another fixed-term agreement. A periodic agreement is where the tenant continues living at the property and paying rent but on a month-to-month basis. This can be ended by either party providing the necessary amount of notice required in your state.
If you’re on a fixed-term agreement and that lease comes to the end of its term but neither party does anything about it, then your agreement automatically rolls over to periodic terms.
Ending the Tenancy and Finding New Tenants
There are a couple of ways that the tenancy will come to an end - either your tenant has given you notice of their intention to end or perhaps you’re the one giving the notice.
Once that has happened there are a few things that you will need to ensure you do to ensure a smooth transition to a new tenancy.
A Checklist for Landlords:
- Confirm the notice to vacate (dates etc)
- Follow up with your tenants in writing
- Start advertising your property
- Organise inspections and secure the new tenants
- Collect the keys
- Complete an exit Condition Report
1. Termination and Notice
The first step in ending a fixed-term agreement is to issue the tenants with a notice of termination.
Each state and territory provides official notification forms that landlords and tenants should use to notify the other party of termination. It is recommended that you use the official forms as they contain all the information required by law.
It is important to review your lease agreement and give the correct amount of notice to your tenants (or vise versa) on the intention to end the tenancy after the term.
ACT - No official form available
WA
2. Follow-up and the Finer Details
Following up with a detailed email is important as it confirms your discussion and outlines the expectations. The email should include the details of the following:
- Confirmation of the move-out date
- Balance of rent owing
- The bond process - what to expect
- Details of when the final inspection will be carried out
- An end-of-lease cleaning checklist
- A copy of the original condition report
It's important that the tenant understands the proper procedure for moving out, including what condition they should leave the property in to help minimise any issues.
3 and 4. Advertise and Organise Inspections
In an ideal world, you’re going to want to secure the new tenants before the end of the lease so that you avoid leaving your property vacant and rent payment gaps.
We advise property owners to start advertising their property at least 4 weeks before it’s available.
On RentBetter we advertise your property on realestate.com.au, domain.com.au and rent.com.au for a one-off fee. If you’re on our Match, Manage, Maintain plan then this is already included and you’re able to advertise your property any time you want at no extra cost.
When it comes time to organise inspections you need to ensure you are providing notice to your tenants if they are still in the property. In most Australian states and territories, written notice must be provided at least 24 hours prior to the inspection.
We recommend structuring your inspections so that they are consistent if possible. For example twice a week on a Thursday night or Saturday morning.
5. Keys, Bond and a Fond Farewell!
The next step is getting back the keys from your tenants. You should have already addressed how to do this in your initial communication about vacating the property.
At the end of a tenancy, the bond is usually automatically refunded to the tenant by the relevant bond authority unless the landlord makes a claim against the money. There are timeframes by which landlords can make a claim for the bond. That’s why is important to ensure that you have your condition report ready to go and do the exit report as soon as possible - within 5-7 days.
It’s always nice to end things on a positive note so as it comes time to farewell your tenants, you should thank them for looking after your property over the duration of their tenancy.
6. The Exit Condition Report
With keys in hand and the property vacant, you should now be able to commence your exit Condition Report. This is where you will walk around the property just like you may have done in the entry report and mark each category against its condition.
If you’re using RentBetter to manage your property you’ll have access to the Digital Condition Report feature.
You can update the report at the beginning, middle, and end of your lease, and because it's saved on the platform, you won't have to recreate it each time. The report is fully customisable so you can add any specific rooms that are unique to your property as well as add photos and comments right from your laptop, phone or tablet.
The platform also offers the option to hire a professional to complete your report for you if you are short on time, out of state, or just want it done professionally. It’s a stress-free way to ensure you get the task done on time, accurately and with ease!
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With the ability to find a tenant, send and sign your lease, lodge your bond, complete your condition report and manage your rental payments - you can confidently manage your property with ease right from your pocket. It’s automated. It’s easy. It's your property but… better!
