This is a great question, particularly as many landlords now face the disturbing trend of 'professional tenants'—renters who are well-versed in the tenancy laws in their state or territory.
This trend was underscored by a high-profile media report about a homeowner who encountered a distressing situation with such a tenant. Seeking to renovate their new property, the owner and her family decided to lease out the property and manage the tenant themselves temporarily. Despite a formal tenancy agreement, their tenant's initially promising facade soon crumbled.
The tenant, claiming single parenthood with two kids, misrepresented herself. She didn't have custody of the children and instead allowed multiple people and dogs on the property, violating the lease. The owner's attempts to inspect the premises were thwarted, and the tenant stopped paying rent. Worse, the property became a hub for illegal activities, causing disturbances in the neighbourhood.
The landlord sought legal recourse through the NSW Civil and Administrative Tribunal (NCAT), citing unpaid rent and lease breaches. Despite the tenant's absence at the hearing, the tribunal favoured the renter. Subsequently, the tenant accused the owner of harassment, delaying legal proceedings and extending their stay.
Only upon the lease conclusion did the tribunal rule in the owner's favour, ordering the tenant to repay the owed rent. However, the tenant vanished post-eviction, making it impossible to reclaim the owed money. The ordeal lasted four months, resulting in $8,000 of lost rent for the owner and untold stress.
The owner could have saved herself a lot of money and heartache by using a property manager. The first thing an experienced property manager will be able to do on a landlord’s behalf is find, vet and secure the right tenants. One of the owner's mistakes was asking for employer's references without completing any checks on the renter's past history.
Securing the right tenant starts with advertising your property online to reach potential tenants. From there, a property manager will organise inspections to allow the interested parties to view the property. Post inspections, each applicant will be carefully assessed. Property managers have access to tenancy databases that enable them to view prospective tenants' rental history. Your property manager can also advise you on the best application for your situation.
Then, before the tenant moves in, a property manager conducts an entry inspection. Afterwards, routine inspections occur every three months to ensure the property's upkeep. These inspections include detailed reports and photographs documenting any repairs needed. A Raine & Horne Property Manager keeps comprehensive records, safeguarding your property's condition throughout the tenancy.
For more information about how to best safeguard your real estate investment, talk to your local Raine & Horne Property Manager.
