There is state-specific law that covers both owner and occupant interests throughout Australia and its states. Since this statute is often updated, particularly during periods of tougher rental markets, it is critical that landlords recognize their obligations since investment property owners are required to follow state law.
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When it comes to obtaining, maintaining, and bond clean, collecting rent, increasing rent, accessing their home, upkeep, renovations, and terminating a tenancy, this short summary can help all landlords properly understand their tenants’ obligations as well as their own landlord or agent privileges.
What criteria do you use to choose a tenant?
You have the freedom to pick the occupant you think is best for your property as an owner, but you do not discriminate against any of the applicants under the Equal Opportunity Act.
The Relationship
This safeguards you whether the occupant fails to pay all rent due, destroys the house, or fails to maintain it in a reasonable state since you would be entitled to sue a part or the whole bond after the lease ends according to the Tenants Union of NSW.
You will be required to include a bond lodgement document to all parties at the outset of a new lease, and you are liable for ensuring that it is lodged with the appropriate NSW civil and administrative tribunal within the specified time frame.
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The duration of the bond is normally four weeks’ rent, although it varies based on the form of residence by a mutual agreement between the landlords and tenants.
Repairs and maintenance to the property will be compensated for out of the contract at the conclusion of the tenancy, but only if both parties consent.
The Monthly Rental
You have the freedom to seek rent on a frequent, fortnightly, or monthly basis as the landlord. You can have accurate and signed certificates for both the bond clean and rental fees, listing the year, the sum collected, property address, tenant’s name, and the time for which it was billed.
- One of the keys is to make sure you get the right tenants in your homes, those that have the financial means to pay the rent and the commitment to take good care of it.
- Effective tenant selection is a capability that can be supported by the assistance of a competent property manager or real estate agent.
- They’ll also assist you with all of the necessary documentation and follow up if the occupant fails to pay their rent on time.
- As a homeowner, you have the ability to assume that the rent will be charged on time and in the manner decided upon in the contract.
- While the law varies from state to state, renters who do not pay their rent by the due date are found to be in “arrears.”
- Whether they are more than 14 days behind on their rent, homeowners have the power to provide them with eviction notices.
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Landlords must remember that even though their renters do not pay their rent or pay it late, the lease must always be charged, which is still the landlord’s duty and should be budgeted for appropriately.
Why Does a Landlord File a Lawsuit Against a Tenant?
While bringing a case against anyone may be stressful and requires advocacy service, there are some benefits of doing so.
• Tenant Can Agree to a Settlement to Avoid Going to Court:
The first benefit, and something that many people wish for when they file a complaint, is that the matter will never go to court. The expectation is that the tenant would choose to escape the trouble of moving to court and maybe losing anyway after getting the court summons.
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They would rather compensate the full sum requested by the landlord than settle for a lower amount that the landlord refuses to consider. The tenant’s identity will now be removed from the legal documents as a result of this.
• Recover Money That Is Owed To You:
Bringing a tenant to arbitration is often the best way to get the money you’re owed by them. When a tenant does not think they are liable for collateral loss, getting them to refund the money will be problematic because they are legitimately obliged to do so.
• Get Extra Penalties:
You will prosecute the tenant in arbitration for not just the amount you owe, but also for additional damages. For eg, if a resident breaches their contract and vacates the premises early, you can sue them for the rent owed for the duration of the term, as well as the costs of finding a new occupant to occupy the vacancy.
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• Make Your Name Known:
If you sue the tenant and win, you would have court evidence that you were right.
• You’ll Have a Record:
You’ll have proof that you secured a legal battle against your tenant. This will come in handy if the occupant ever wants to sue you in the future. A win would therefore demonstrate you before the tenancy tribunal as a law-abiding homeowner who understands the correct processes and policies for managing a rental home.
Taking a Tenant to Court Has Risks
Although there are benefits of prosecuting the neighbor, a homeowner must still be aware of the consequences. There is no promise of success, and you risk seeing the occupant file a counterclaim.
• You Can Lose:
Just because you file a case does not mean you can win it. You might waste all of the time, effort, and resources in court and yet lose.
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• You Might Win, But You May Never See the Money:
You might be paid the money due to you by the judge, but you will never see it. Despite the fact that the tenant already has a verdict against them, you will have to pursue the tenant for years in order to recover the money you are due.
• Expense:
Heading to court can cost you money regardless of whether you gain or lose. Only to file the petition, you’ll have to pay a court charge. This fee differs greatly depending on the jurisdiction. Depending on the circumstances, you will need to find an attorney to defend you, which may easily become prohibitively costly.
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• Tenant Can Countersue:
Filing a claim may enrage the tenant, prompting them to file a countersuit. You could lose the case and end up owing the tenant much more money in penalties and attorney’s fees.
Reasons to Sue The Tenant
You may refer a tenant to court for a variety of purposes. The below are some of the most popular grounds for a landlord to sue a tenant:
Unpaid Rent: If a resident has not paid their monthly rent according to the signed lease, you should give them a note to pay rent or vacate the premises. If it doesn’t succeed, you will bring an eviction complaint against the occupant. You will even prosecute them for whatever rent they owe at the same moment.
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Unpaid Utility Bills: If the homeowner has some unpaid utility bills at the rented house, you will prosecute the tenant and get the money back. This number is always deducted from the tenant’s security deposit. If the security deposit is insufficient to cover the costs, you will file a suit in small claims court to reclaim the remaining funds.
Property Harm: A homeowner may prosecute a resident if the tenant has incurred property damage. Begin by deducting the sum of loss from the protection deposit once again. If the protection deposit does not meet the cost of the loss, you will take the tenants to court for recovery of the remaining funds owing to you.
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Unapproved Unit Alterations: If the occupant has made modifications to the unit without your permission, you will sue the tenant to recoup the costs of restoring the unit to its original condition report.
Occupant Owes More Than Security Deposit Value: If you’ve deducted the full sum from the tenant’s security deposit so they somehow owe more, you will sue in small claims court to reclaim the difference.
Countersue for Security Deposit: If a resident believes you wrongfully withheld their security deposit, they can sue. You will countersue in this situation by demonstrating that you have the legitimate right to deny or subtract from their deposit.
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To Reclaim Lost Money from an Illegal Move Out: If the tenant moves out before their contract was up, you may take them to court to recover the rent due for the remainder of their lease.
To Recover Costs of Finding a New Occupant For an Illegal Move Out: Certain states will authorise you to pursue an illegally evicted tenant for any extra expenditures you might incur while attempting to locate a new tenant for the unit. This may involve expenses such as ads and services.
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Expenses to Dispose of Tenant’s Discarded Goods: You have the right to prosecute a tenant for the costs of removing or storing their abandoned property or for any professional end of lease cleaning.
Occupant Using the Property for Unlawful Dealings: You may prosecute a tenant for damages if they used the property for illegal purposes.
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Having a Pet Illegally: If you have a no-pets policy and discover that your neighbor has a pet, you can prosecute them for negligence as well as any other harm the pet has incurred at the home.
Other Breach of the Lease Agreement: If the occupant has violated some other provision of the lease that has caused you financial, mental, or physical damages, bringing the tenant to court might be the only option to get the money you are due.
Repairs are the landlord’s responsibility.
Your tenant or property management can sometimes contact you to inform you that you may need to fix an object in your rental property. While some of these might not be immediate, others may need to be addressed as soon as possible.
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You’ll need to react quickly to urgent repairs. If this is completed, the occupant has the ability to get these corrections done at your cost up to the amount of $1000.
Consult the property manager or your nearest Consumer Affairs branch if you’re uncertain what constitutes an “urgent fix.”
