Today I would like to share some information with you regarding rental bonds. At the beginning of a tenancy, we ask the tenant to pay a bond for the rental property which is equivalent to four weeks rent.

The bond is only four weeks rent regardless of how many tenants occupy the property, and it is used as security for the property in case the tenant does not follow the terms of the agreement and they need to compensate the landlord.

Rental bonds are required to be lodged with the Rental Bond Board. These days we lodge bonds using rental bonds online. The bond lodgement details include the rental property address, the landlord and landlord’s agent, and the primary tenant.

To ensure they get the bond back, tenants need to make sure the property is left in the same condition as when they first rented the property, except for fair wear and tear. If the tenant has damaged the property, or not left it in a clean and tidy condition, or if they owe rent or other money to the landlord, they may forfeit some or all of their bond.

If there is a dispute over the bond at the end of the tenancy, then the matter is taken to the NSW Civil and Administrative Tribunal.

We hope that helps you understand rental bonds a little more, and if you have any questions regarding this topic or would like assistance with managing your rental property, we are more than happy to assist at Century 21 Central West for all your property management needs.

Today I am discussing all the things you should be looking for when purchasing an investment property.

It is important to look for a property with desirable qualities, as this is going to assist you in the long run with aspects such as how long it takes to fill the home, how much rent you can get per week, and the quality of tenant you attract.

The location of the property is important, properties within close proximity to town and main areas such as schools and facilities are desirable.

It is also helpful to consider the condition and quality of the property, purchasing a property that will continuously require work and problems is not ideal for any investor.

Tenants often desire a more modern and comfortable home, sometimes this may be a minor face lift to the home.

Another area to focus on is the neighbourhood, as this will sometimes affect the type of tenants that you do attract.

It is crucial to do your sums beforehand, as cash flow is always king when aiming to ensure an adequate return on investment.

Once you have selected the perfect investment home, it is time to choose a property management team that will provide you peace of mind and security. After all, you want your property to be in the best managing hands.

For more information regarding our property management services, feel free to contact us at Century 21 Central West.

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.

We have had many tenants moving in and out of properties recently, and I thought it a good time to clarify what the term “fair wear and tear” means.

When it comes to Residential Tenancy Agreements, fair wear and tear means the normal deterioration of a property over time from ordinary, everyday use.

Some examples of fair wear and tear consist of faded curtains, frayed cords, furniture indentations and traffic marks on flooring, scuffed wooden flooring, faded or chipped paint or movement cracks.

Some examples of what is not fair wear and tear are missing or torn curtains, large marks or holes in walls, significant damage to flooring such as stains or burn marks, badly scratched or gouged wooden floors, unapproved paint jobs, burns or cuts in benchtops, and damage caused by pets.

The tenant is responsible to rectify any negligent, irresponsible or intentional actions that cause damage to the property. These are things we look for during our regular routine inspections rather than just waiting until the end of the tenancy.

Should we discover that there are some items that need to be rectified, we will ad- dress this as soon as possible to achieve a suitable solution.

Alternatively, if it is the end of the tenancy and damage is noted on the outgoing inspection, we will claim the tenant’s bond to reimburse or compensate the landlord for this.

For more information on this topic please feel free to contact the Century 21 Central West team today.

When looking at renting out a property there are a few things that can mean the difference between a successful investment, and a real estate nightmare.

It is crucial to have a property manager who stays on top of maintenance and has a great relationship with local tradespeople. When looking for a property manager, investors should look for one that is going to maintain the property, so the quality remains.

Consistency and integrity during regular property inspections, clear and concise communication with owners about the required repairs, as well as proactively organising repairs with tradespeople, are just some essential requirements of a successful property manager. Leaving repairs for an extended amount of time only creates larger problems, so we work to identify anything that needs doing and try to organize repairs as soon as possible to avoid further issues.

At Century 21, Tara and her team keep property owners updated throughout the repair process, ensuring the work has been done and to a high standard and sending images of the completed work for peace of mind.

The Century 21 property management team has an excellent relationship with local tradespeople which makes all the difference when getting the job completed to a high standard and in a suitable time frame. For investors to be certain that their property is well looked after and that the value of their property continues to increase, look no further than Tara and her team at Century 21 Central West. For more information about how the property management team at Century 21 can assist you with your investment property, please feel free to contact us today!