When an offer to purchase a property is accepted by the seller, it is generally referred to as ‘under offer’. This means that the agreement on price, terms and conditions has been reached, however the seller and buyer still need to sign the contracts and exchange.

Depending on various terms and conditions agreed upon during the negotiation phase, it can take several days to progress from the offer being accepted to the contracts being exchanged.

During this time the buyer or the seller may withdraw from the agreement.

In NSW two identical contracts are prepared – one is signed by the seller, the other by the buyer. Solicitors or conveyancers will exchange the contracts, however if the property is sold on auction the real estate agent usually exchanges contracts.

After the contracts have been exchanged, it is referred to as ‘under contract’. With a private treaty sale, the buyer has a five-day cooling off period. However, the buyer would be required to pay the seller 0.25% of the purchase price as a penalty for withdrawing from the sale.

Auction properties do not have cooling off periods. If a property is sold prior to auction, or on auction day, the buyer must complete the purchase or risk losing their 10% deposit.

Most agents put the Sold sticker on after contracts have exchanged and the cooling off period has expired.

When the property transaction is completed, which is commonly 42 days after exchange, it is referred to as settlement and the new owner takes possession of the property!

Today I am discussing whether to allow pets at rental properties.

Although landlords may feel apprehensive, there are some benefits in allowing pets at your investment property.

Most Australian households have pets, with approximately 62% of people owning an animal. So, allowing your rental property to have pets may attract a longer-term tenant or family, which is what landlords desire, as it provides stable rental income.

In addition, allowing pets may enable landlords to aim for a higher return of rent and can assist with renting the property a lot quicker with a larger number of tenant applications to choose from.

At Century 21 Central West we require tenants to complete a Pet Application Form at the beginning of the tenancy, so we can find out what type of pets they have, and the age of the pet, which helps us to ascertain if the property they are applying for will accommodate that type of pet.

During inspections, we will monitor the pets’ living conditions and report back to you, so any issues can be addressed to ensure the property is being looked after.

When a tenant with pets vacates the property, we can enforce a pest spray in the yard and carpet cleaning inside the home.

There are benefits to letting tenants have pets at rental properties, and we recommend assessing this on a case by case basis. For more information on this topic please get in touch with the Century 21 Central West team today.

Changes to the Residential Tenancies Act came into effect on 23rd March this year. Today I thought we should discuss the new break fees for fixed term agreements.

When a tenant signs a lease, they should be committed to staying for the entire fixed term, otherwise the tenant may need to break their fixed term lease which will incur a penalty. This is called a break lease fee.

For tenants that have signed a lease from 23rd March onward, and the lease is for a term of three years or less, their break lease fee will be calculated based on what stage of the agreement they are in.

• Four weeks rent if less than 25% of the agreement has expired.
• Three weeks rent if 25% to 50% of the agreement has expired.
• Two weeks rent if 50% to 75% of the agreement has expired.
• One weeks rent if 75% or more of the agreement has expired.

For example, if two months of a six-month tenancy agreement has expired, that would be 33% of the lease term. Therefore, the tenant would need to pay a fee equal to three weeks rent to the landlord to end their agreement early.

However, if the tenant signed the lease before 23rd March, before the new legislation came in, these fees are not applicable to them. These tenants would still be bound by the former agreement rules.

For more information go to the Fair-Trading website or alternatively, contact us at Century 21 Central West.

Today we are discussing the advantage of using a real estate agent to manage your rental property. Private landlords often feel like agents don’t offer good value for money. They might have had a bad experience with an agent, and feel they are better off doing it themselves.

As agents we are often called to assist private landlords when things turn sour be- tween tenants and themselves. The tenant might have fallen behind with rent and the landlord doesn’t know how to address the issue, or the tenant is not maintaining the property. Quite often we step in as the third party, negotiate, and find solutions. This is where our experience and knowledge of appropriate legislation pays off. We are used to handling all kinds of tenancy related matters, and have the time and energy to commit to it.

We aim to minimise costs for the landlord with professional management and avoid costly bills that they may incur if things go wrong. At Century 21 Central West, we have an experienced team dedicated to the fields of leasing, managing, and maintaining rental properties.

Leasing is the initial letting of the property, from advertising to qualifying tenants prior to letting them have the keys. Managing includes collecting rent on time, ensuring all required documents are completed and keeping up to date with legislation. We also have a routine inspection manager and are proactive regarding repairs and maintenance required.

If you are considering using the services of an agent, contact us at Century 21 Central West for our Landlord Information Package. Email tara.kelly@century21.com.au or call 0418 465 407.