Homes for sale across Australia can be turned into profitable rental properties by savvy investors, but when it comes to becoming a landlord, it’s important to understand the legal obligations relating to tenancy agreements.
Landlord and tenant laws in Australia are intended to protect the rights of both parties when it comes to renting a home, but it’s still essential to understand the differences between different types of tenancy agreements, as well as ways to streamline the process. This is where the property management services of Ray White Balgowlah can become very helpful.
Fixed versus periodic
The tenancy agreement you provide to your renters will outline the rent amount to be paid, how it will be paid, how long the term will last, how much security bond is required and any other rules and conditions you have in place.
However, one of the primary steps that needs to be taken is deciding on a fixed term tenancy agreement or a periodic term tenancy agreement.
Ray White Balgowlah can help you explore your options and recommend the type of agreement that suits your needs.
As its name implies, a fixed term agreement is set for a pre-determined length of time. This way both parties know in advance when the agreement comes to an end, providing you with enough time to work on finding new tenants and getting the home in order.
A periodic term agreement can go from month to month, or even week to week. While this can be more dangerous for you as a landlord, it can also attract more renters who are apprehensive about being locked into a home for an extended period of time.
Regardless of which type of agreement you decide to use, it is still required for landlords and tenants to give each other notice when one party is leaving.
If a tenant wants to end their fixed term agreement, they are required to do so by giving at least 14 days notice before the last day of the agreement. If a landlord would like to end the fixed term agreement, they are required to give at least 30 days notice before the last day of the agreement.
If you want to end your tenancy as a tenant AFTER the fixed term has been and gone, also know as a periodic agreement, you will need to give no less than 21 days notice. If the landlord wants to end the periodic agreement, they are required to give 90 days notice.
At Ray White Balgowlah, our policy is to start the conversation with both tenants and landlords 90 days prior to the lease expiring. This gives everyone plenty of lead in time to make their decisions and notices can be issued either way.