Get To Know The Rules & Regulations In New South Wales (NSW) Before Renting Out Your Own Property
Many property owners prefer to cut out the real estate agent (and their fees) and simply self-manage their property themselves. Renting out your own property is certainly not rocket science, and can be an extremely rewarding experience (both financially and personally) but it is worthwhile getting the basics right so that you and your tenant are set-up for success.
This article aims to provide readers with a quick reference guide on where to go and what to do when starting out.
- What should I know about the real estate market in NSW?
- How should I price my property in NSW?
- How do I start a lease in NSW?
- How do I lodge a rental bond in NSW?
- How can RentBetter help?
What do I need to know about the real estate market in NSW?
When preparing to rent out your own property, it is important to familiarise yourself with similar rental properties in your area. NSW is a large geographic area and the property market can seem complex, so we have compiled a summary of ‘Fast Facts’ about NSW that will help you understand the rental landscape.
There were 7,480,228 people in New South Wales as at the last census date in 2016, and here are the key figures to know:
- 7% were female and 49.3% were male
- Average weekly gross household income increased from $1,237 in 2011 to $1,486 in 2016 and personal income at $662
- 2% of the population was aged between 15-6 and only 16.3% over 65
- Of occupied private dwellings in New South Wales:
- 8% rented, compared to 32.3% mortgaged and 32.2% owned outright
- Rental increase by 1.7% from 2011 to 2016
- 4% were separate houses
- 2% were semi-detached, row or terrace houses, townhouses etc
- 9% were flats or apartments
- 9% were other dwellings.
- 0% had 1 bedroom, 22.2% had 2 bedrooms and 37.2% had 3 bedrooms. The average number of bedrooms per occupied private dwelling was 3.
- The average household size was 2.6 people.
- In New South Wales, of all households, 72.0% were family households, 23.8% were single person households and 4.2% were group households.
- 3% of occupied private dwellings had one registered motor vehicle garaged or parked at their address, 34.1% had two registered motor vehicles and 16.7% had three or more registered motor vehicles.
How should I price my property in NSW?
Most State government have rules about when a landlord can increase the rent on their investment property. The restrictions only apply where there is an existing tenant in the property, so if you are looking to sign on a new tenant you can just change the asking rent when you advertise.
Fair Trading NSW:
- Fixed-term lease (less than 2 years): Cannot increase the rent during the fixed-term unless the terms of the lease specifically allow for it and define the amount (in this case, give tenant 60 days written notice)
- Fixed-term lease (2 years or more): Can increase the rent at any time by giving at least 60 days notice in writing (however cannot increase the rent more than once over a 12 month period)
- Periodic (continuing) Lease: Can increase the rent by giving at least 60 days notice in writing
- Notice Form: no specific form but notice must specify the amount of the new rent, the date from which it is payable and be signed, dated and addressed to the tenant
- Tenant’s rights: within 30 days of receiving the notice, the tenant can apply to the NSW Civil and Administrative Tribunal if they think the rent increase is excessive
How do I start a lease in NSW?
Starting a lease typically consists of 4 key elements, which have slightly different names depending on which state you are operating in, but ultimately have a similar intent and outcome. The ‘big 4’ are;
Starting a lease typically consists of 4 key elements:
- Guide (click here) – A guide or checklist provides the tenant with a range of helpful items that they should know or understand before signing a lease
- Lease (click here) – A residential tenancy agreement (or lease) is the legal contract and terms and conditions between the owner and the tenant
- Condition report (click here)– 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
- Bond (click here)– A rental bond is a security deposit a tenant pays at the start of a tenancy which is then lodged with the state government agency.
How do I lodge a rental bond in NSW?
More information on lodging bonds in NSW:
The Rental Bonds Online will direct you to a website where you can access bond lodgement.
You will need to register by completing the Registration Form and submitting it to Service NSW. You should then receive an email from NSW Fair Trading to activate your log in details, and they will provide you with an information kit (similar to this one attached).
You may then log in by clicking ‘Agents and landlords login’. Once you’ve registered, you will be able to invite tenants to the RBO Portal and they will be able to pay the bond directly. This will record and manage the bond electronically.
For additional help, you can contact Rental Bonds Online Security and Support by emailing email@example.com.
How Can RentBetter.com.au help?
Of course, at RentBetter.com.au our aim is to make this a seamless, frictionless experience for you and your tenant by including the necessary documents and compliance into our process – you can click here to sign-up and get started.
RentBetter is designed to help you find and manage tenants using the RentBetter Platform. Our customers use RentBetter to advertise their property on the major property portals (Realestate.com.au and Domain.com.au), and our platform can help with enquiries, applications, tenant checks and lease documents to assist you in finding a high-quality tenant for your property. The RentBetter platform can also help to onboard your tenant to your lease, and automate the process of rent collection, tracking, receipts, maintenance, and reporting.