(http://www.tenantmanagement.com.au/videos/08-5-things-to-do-before-handing-over-the-keys-to-tenants/) - As a property investor, it is vital that a number of tasks are completed before handing over the keys to your new tenants. By completing these tasks you are much more likely to have a smooth tenancy so It is important to set the scene from the beginning as to how the tenancy will unfold. I have outlined the 5 most important things every property owner must do before handing over the keys to your tenants and having them move in.
5 things property owners must do before handing over the keys
1 of 4As a property investor, it is vital that a number of tasks arecompleted before handing over the keys to your new tenants.By completing these tasks you are much more likely to have asmooth tenancy so It is important to set the scene from thebeginning as to how the tenancy will unfold.I have outlined the 5 most important things every propertyowner must do before handing over the keys to your tenantsand having them move in.Ensure a smooth tenancywww.rentmyestate.com.au5 Things Property Owners must do before Handing over the Keys
2 of 4The first thing you need to do is get a full period’s rent. That is to say, if you collect rent on a monthly basis, then thetenant has to give a full one month’s rent before you hand them over the keys. If it’s on a weekly basis, a full week’srent. This is important for two reasons: if the tenant seems to have problems paying the first period’s rent, he or she isalso most likely going to have trouble paying rent in the future. Another reason is that it starts the cycle of the tenantpaying rent in advance, otherwise described as “prepaid rent.” So it is best to do this before or during the signing of thelease.Another important point is that you should get the maximum bond that you are legally allowed to receive from yournew tenants. This is different from state to state. Doing this can help cover any damage incurred at the end of thetenancy or if there is any unpaid rent. Once you receive the bond, you should have a bond form signed by all partiesthen handed over to the relevant government body, which will hold the money in trust until the end of the lease whenall parties agree to the disbursement amount of the said bond.Get Full Period’s Rent & Maximum Bondwww.rentmyestate.com.au5 Things Property Owners must do before Handing over the Keys
3 of 4It goes without saying that you must have an agreement in writing signed by both parties, this is generally calledResidential Tenancy Agreement. This lease should be signed by all parties and a copy should be given to each. Attachedto that lease should be a printed copy of the keys (photocopied or a printed copy of a photo), and the key should betaken off the key ring so you can easily identify and match up the keys at the end of the tenancy. You must attach a copyof the relevant Renting Guide (called differently from state to state) to be given to the tenants prior to or when signingthe lease. These forms are now easily accessible through Rent My Estate, you can download copies of the lease formsrelevant to your state anywhere in Australia with just the click of a button.You should complete a comprehensive condition report of your property before the tenants move in. The morecomprehensive your report is, the less likely there will be a disagreement at the end of the tenancy. You should alsoinclude photos, videos and an inventory with the report just to be clear of the condition of the property before thetenancy. Although this may seem like a lot of work but a well documented condition report will save time in the long runand spare you from arguments at the end of the tenancy.Prepare Condition Report & Residential Tenancy Agreement Leasewww.rentmyestate.com.au5 Things Property Owners must do before Handing over the Keys
4 of 4Make it clear on how your tenants should pay the rent, preferablyhave a direct debit form signed by the tenants. When there issome sort of automatic schedule in place for the tenants to payrent, the rent is less likely to ever be paid late. It is essential toaccomplish these things before the start of the tenancy, becauseonce the keys are handed over, most of them are nowhere nearcooperative and it becomes difficult to get them to agree to signmore documentation once they have moved in as the motivation isnow gone. From experience the party that holds the keys, holdsthe power. Use the power while you still have it. Of Course thereare rules and regulations to follow and each party has certainresponsibilities but dont make your life harder than it needs to beand get it right at the start of the tenancy. Set and forget.Rent Collectionwww.rentmyestate.com.au5 Things Property Owners must do before Handing over the Keys