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Renting guide: How to leave a rental property and get your bond back

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    You must leave your home in the same state that you found it in when you moved in if you choose to visit your rental property.

    Most of the time, this entails removing any personal possessions and non-included furnishings, completely cleaning the home, and repairing any gardens to their former state.

    Depending on your circumstances and whether your lease is fixed term or periodic, you may need to give the landlord a different amount of notice.

    Would you like to speak to a specialist? Book a complimentary discovery session by calling: (03)999 81940 or emailing team@klearpicture.com.au.

    How to clean a rental property to get your bond back

    In general, tenants are expected to leave rental properties in the same condition they found them. Therefore, it's crucial to record the condition of the house on a condition report when moving into a property to prevent later disagreements.

    The majority of states have laws dictating that when a tenant vacates, the rental property must be returned to a "reasonably clean" state.

    The majority of rental agreements or brokers will give tenants a list of frequently forgotten areas to clean, like fans, vents, filters, blinds, ovens, and beneath appliances.

    To get their bond back, tenants are not required to employ cleaning services.

    Many tenants believe that in order to get their bond back, the carpets must be steam cleaned, although this requirement is not always enforceable or lawful. For instance, in NSW, a residential lease agreement cannot include such a clause unless the landlord consents to the tenant's keeping an animal on the property.

    Other states have fewer defined laws regarding carpet steam cleaning, thus this is frequently specified in a tenancy agreement.

    According to several consumer protection organisations and renters' unions, carpets only require steam cleaning if the landlord had already done so before the tenant moved in. Only returning the rental property to its pre-tenancy condition should be the tenant's responsibility. Unions have successfully argued such cases before a tribunal.

    Always save the receipt as proof if you decide to steam clean the carpets in a rental property.

    Common reasons renters lose their bond

    Renters frequently lose all or part of their security deposit for a number of reasons, such as:

    • Owing rent.
    • Unpaid utility bills
    • Early lease expiration without payment of the associated costs
    • If some copies of the keys are not returned, the locks must be changed.
    • As a result, the property is enduring damage above and above typical wear and use.
    • I'm not going to leave the house in a spotless condition.
    • They are taking things out of the rented house.

    The agent or landlord may require the tenant's bond for extra reasons.

    The tenant's bond must be properly lodged at the start of the tenancy and delivered to the state legislature with a receipt.

    Tenants must ensure their information is correct when they leave a rental home to receive their bond returned and correspondence.

    If the landlord is unable to collect your bond

    The right of a landlord to require a bail is waived in the following situations:

    • The inability to pay rent or any other reason throughout the term of a rental agreement, given that the security deposit can only be returned after the term of the tenancy agreement has come to an end.
    • Leaving without having a professional cleaning done on the property before you leave.
    • Personal differences are likely to blame for this landlord and tenant's strained relationship.
    • The tenant was allowed to have a pet inside the rented residence so long as the animal did not cause any damage to the property.

    This is not an exhaustive list, and the process for getting your bond back varies widely according on the state or territory you're in.

    How much notice do you have to give when moving out?

    At the conclusion of a fixed-term tenancy agreement's term, the agreement may be cancelled, renewed for a new fixed term, or changed into a periodic lease, also referred to as a "month-to-month" lease. Any of these options is possible.

    If you wish to quit the property before the end of a fixed-term agreement, you are required to break the lease, which may result in additional costs being assessed to you.

    The amount of notice that is required for a renter to quit a property that is rented on a periodic basis varies from state to state and area to region.

    • NSW: 21 days
    • VIC: 28 days
    • QLD: 14 days
    • WA: 21 days
    • SA: 21 days’ written notice or one month’s written notice if the rent is paid monthly
    • TAS: 14 days
    • ACT: Three weeks
    • NT: 14 days

    All of these deadlines have exceptions, so check the relevant state legislation for further details.

    How to break a lease

    In every state and territory, it is considered "breaking the lease" if a tenant vacates a rental property prior to the conclusion of a fixed-term agreement on the property.

    Tenants who violate the terms of their lease may be held financially responsible for the loss of rent, advertising costs, and letting fees incurred by the landlord as a result of the breach.

    Tenants in New South Wales are responsible for paying an additional "break charge" if that provision is contained in their lease agreement.

    If the term of the agreement is less than three years, the tenant will be responsible for paying a break charge equal to six weeks' worth of rent if they move out during the first half of the term, and just four weeks' worth of rent if they move out during the second half of the term. If the term of the lease is going to be longer than three years, the lease agreement can include a certain amount that has already been decided upon.

    If a tenant's outstanding balance with their landlord is greater than the amount of the bond, the renter runs the risk of having their name added to a database that is referred to as a "blacklist."

    A fixed-term lease may be terminated early and without penalty in certain states and under certain conditions. For instance, a tenant may be able to do so if they accept an offer of social housing, must move into an assisted living facility, or receive a final order of apprehended violence against a roommate that bars them from the rental property. In these cases, the tenant may terminate the lease early.

    How to reduce the cost of breaking a lease:

    • As much advance warning as you can. This will minimise the landlord's rent loss and give the agent more time to find a new renter.
    • Participate in the re-letting of the property, for example, by keeping the place clean during inspections.
    • Find an appropriate replacement tenant yourself to take over the lease.
    • With your lessor, work out a written mutual termination agreement.

    Can you take plants from the garden when you move?

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    When you moved in, if your rental property had plants, you couldn't take them with you when you left.

    However, if the renters themselves planted these, it is typically up for negotiation as to whether or not they may be taken with them.

    For instance, a landlord might agree to let a tenant grow a vegetable garden as long as they leave it on the property after the lease is up.

    That may be the case because the landlord intends to sell the house and believes that a well-established vegetable garden will increase the property's worth.

    How much rent is too much to pay?

    It's simple to get caught up in the present when shopping for a new house, whether we're trying to buy or rent.

    You locate your ideal property and are more than willing to adjust your financial expectations in order to make it yours.

    Having a home loan pre-approval when buying a house helps keep things in control because the bank is likely to reject your mortgage application if you overcommit to the purchase.

    But what constitutes an excessive rent payment?

    According to Finder insights manager Graham Cooke, spending more than 30% of your salary on rent is generally regarded as excessive and can cause mental stress.

    The 50/30/20 budgeting guideline is a fantastic tool to employ. According to this, you should spend 50% of your salary on necessities like rent, groceries, and bills, 30% on non-essentials like streaming services, dining out, and other luxuries and 20% should go towards savings.

    "You'll need to take into account your circumstances as well as the situation of the market when calculating how much you're willing to pay in rent."

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    Although it's a good idea to aim to keep within that 30% range, other elements like location, property type, and size will also affect how much a property is worth.

    Before you start attending open houses, Mr. Cooke advises doing some research on comparable properties in the neighbourhood to get a sense of what you might be paying.

    You don't want to fall in love with a suburb only to find out that it is much out of your price range.

    Ian Ugarte, the creator of the Australian Housing Initiative, claims that the inability to afford to buy a home in a region frequently drives demand for rentals.

    "Unfortunately, this might raise prices in a location because it can lead to higher rental prices due to a reduction in the availability of rentals there," he explains.

    The value of a property rises as a result of the high rental yield/demand for housing in the area if property owners can command a decent rental return in a certain area.

    Consider how much it would cost to service debt in the same region, according to Mr Ugarte, to determine how much is too much when estimating rent.

    In other words, you know you're paying too much rent if it costs less to service the mortgage than to pay the rent on the same property.

    Of course, when deciding how much you're willing to pay to rent a property, priorities also matter.

    According to Martin Kennedy, manager of research and public affairs at Compass Housing Services, "some people may be prepared to spend more on rent to minimise their commute time, or to have a place with an extra bedroom, for example, and merely cut down in other areas to make it work."

    Spending more than 30% of your salary on rent, however, is seen as an indication of mental stress by the average income earner.

    Rent concern causes people to eventually reduce their spending in other areas, according to Mr. Kennedy.

    "In extreme circumstances, this may mean that tenants must choose between paying their rent and other essentials like groceries and utilities.

    "If housing stress spreads, as it has in Australia, it affects people's quality of life on a more profound level than simply their own lives; it also has a negative influence on the rest of the economy because people who are experiencing housing stress will spend less on discretionary products."

    Spending more than 30% of a higher income earner's salary on rent won't always result in mental stress, but it doesn't imply it's a good choice.

    You're wasting money if you pay too much rent, claims Mr. Cooke, money that could be used to help you climb the property ladder.

    If you believe you are paying too much rent and the horse has already gone, Mr. Cooke advises that you should speak with your landlord about a reduction. Just remember to be reasonable in your demands.

    He advises using other features as a baseline.

    "Your landlord is more likely to be sympathetic if you can demonstrate that your rent is greater than that of comparable properties in your neighbourhood."

    But Mr. Cooke argues that realism must also apply to landlords, as some are finding it difficult to fill their vacant homes as a result of the COVID-19 situation, and that tenants should be wary of signing short-term leases whose rates could rise dramatically after six months.

    Get at least a 12-month price guarantee, and if possible written assurance from the landlord that rent increases after that point will be limited to a specific percentage every year.

    It's a renter's market right now, so exploit your position to your advantage.

    How to secure a bargain when moving to a new rental

    A new rental home offers a plethora of fresh opportunities. You might be relocating closer to your place of employment, adding a bedroom, leaving a shared residence, or upgrading to a bigger property.

    But it's frequently forgotten to bargain for lower rent when relocating to a new property. Contrary to popular belief, advertised rentals are not fixed prices.

    You can get a great deal on your next rental with the right evaluation, supporting documentation, and offer.

    Gauge the competition

    A landlord is more likely to be amenable to price negotiation if they are having trouble finding a renter.

    Leo Patterson Ross, chief executive officer of Tenants' Union NSW, claims that a few signs point to little competition for a rental.

    Sizing up the number of visitors to inspections is the clearest. Your prospects will be minimal if a line forms outside the door.

    hand-keys

    Knowing what comparable properties are selling for in the neighbourhood is another. That's a fairly powerful signal if you know that there are ten identical homes with the same quality of fit-out, and they're all going for less than this place is listed for.

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    If you’re noticing that the duplicate listing appears in your search for weeks, it could be ripe for bargaining – but could also go the other way. 

    If a place has been advertised for a long time, then that indicates that they’re not getting the interest. It can indicate the opposite way too; they don’t mind that they don’t get the place rented quickly, so they’re immune to [lower] offers.

    Collect evidence

    It is essential to have hard proof proving the asking rent is excessive. Comparable rental listings and broader market conditions can serve as this evidence.

    According to Kaitlyn Schneider, manager of the property management department at Ray White Holland Park, "Rent is typically based on similar properties in the market - existing homes and homes rented in the past month and what rates were attained."

    Schneider advises giving the agent links to comparable houses in your search that are listed for less than the one you're applying for if you want to demonstrate that a property is overpriced.

    "It's possible that the owner already knows what the property manager is telling them and needs to hear it from a different source. If an applicant can show me the supporting documentation and that they searched, I will always take their request into consideration.

    The ratio of vacant rental properties to the total number of rental properties is also shown by vacancy rates. In April, the national vacancy rate increased by 70 basis points to 2.5%. This was caused by a rise in new rental listings starting in mid-March as a result of tourism restrictions forcing short-term rentals onto the private market and a drop in demand from renters brought on by the negative effects of the economy. COVID-19.

    This indicates a three-year high in the number of vacation rentals in places like Sydney and Melbourne, and rising vacancy rates typically signal an impending decrease in rent. If you're looking in a capital city, quarterly rental reports can also show you whether prices are going down.

    Learn where else to compromise

    You might make concessions on other points to reduce your rent in your rental agreement.

    From the landlord's point of view, investing $1,000 to have the property painted actually costs them less than reducing the rent by $30 per week. You may offer to assist with the modifications while requesting a lower rent, suggests Ross.

    Schneider concurs and suggests using garden and pool upkeep as leverage in your rent negotiations.

    "The owner of a property will advertise that they will provide lawn care as an inducement to move into the property. According to her, you might ask for a discount and offer to perform the upkeep yourself to pay $10 to $20 less every week.

    Would you like to speak to a specialist? Book a complimentary discovery session by calling: (03)999 81940 or emailing team@klearpicture.com.au.

    How low should you go?

    You should be able to determine whether a lower offer is feasible once you thoroughly understand the competition and market surrounding a rental property.

    According to Ross, picking a number to provide is like striking a balance. In order to avoid completely turning off the agent, he advises utilising your evidence-based argument based on comparable properties as your benchmark.

    The agency might not take you seriously if you shoot too low, or you run the danger that someone else offered to negotiate down with you but didn't go as low as you did.

    “rental bond” means an amount of money paid or payable by the tenant or another person as security against any failure by a tenant to comply with the terms of a residential tenancy agreement. Bonds are not mandatory, bonds are optional in every state in Australia.

    a bond (maximum four weeks rent) up to two weeks rent in advance. a fee for registering the agreement with NSW Land Registry Services (if the tenancy agreement is for a fixed-term of more than three years).

    The bond you paid at the beginning of your tenancy will usually be refunded in full, unless: you owe the landlord or agent money, or. there is damage to the property.

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