Often, a content tenant makes for a content landlord.
Issues like late or unpaid rent and property damage may be minor when a landlord and renter get along well.
Although the landlord's property management will undoubtedly benefit from this, building and maintaining a solid relationship will take some effort. It won't be accomplished by renting out a house and then ignoring the renters. It also won't be built by micromanaging and hovering over the renters as they try to live their lives.
When establishing and preserving positive relationships between landlords and tenants, there are five essential factors to take into account.
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Address maintenance concerns as soon as possible
The speed with which a landlord responds to a tenant's request for maintenance might provide insight into how the landlord values their relationship with the renter and how much they love having tenants. Taking prompt action and maintaining open communication with tenants demonstrates the landlord's concern for the situation.
When a problem arises that prevents a tenant from enjoying the home, such as defective water heaters, stoves, or air conditioners, clogged drains, or damage caused by rain, it is essential to move quickly in order to resolve the issue.
If the tenant is kept apprised of the progress being made and is aware that action was taken as soon as the matter was reported, it may assist to lower the level of tension in the situation. It could take a few days for a skilled craftsperson to finish making repairs or to replace a broken gadget.
A follow-up phone call or the installation of a replacement unit a few days after repairs have been completed is beneficial to establishing confidence for a number of reasons. If a landlord fails to undertake maintenance or repairs and a tenant or the tenant's guest has an injury as a result, the landlord may be held legally responsible for the injury in court. In addition to this, it may give the tenants the incorrect impression.
Conduct routine inspections
Regular inspections are necessary to make sure the renter is maintaining the property, and your rental agreement or the legislation may contain inspection obligations. Additionally, a tenant has the chance to bring up any maintenance issues that the landlord has to fix.
Regular inspections serve to reaffirm the conditions under which the tenant has leased the property and demonstrate to the renter that the landlord is actively concerned about its upkeep.
Ensure that positive relationships are maintained with tenants
Maintaining open lines of communication with your tenant will increase the likelihood that they will work with you and be cooperative during the duration of the lease.
Establishing a relationship requires active listening, a thoughtful evaluation of any requests for changes to the terms of the lease, and an immediate response to any questions or concerns that may arise.
Requests to change the terms of a lease should be carefully reviewed, and if they are denied, solid arguments should be given in writing. If a request is denied, good justifications should be given in writing.
It's possible that the legislation or the terms of your rental agreement include particular recommendations for how to handle enquiries. When there is a need for routine maintenance, it is a smart idea to consult with the renter regarding the most convenient time of day for the work to be done.
Take the tenant's needs into account
If you are trying to sell your rental property, the lease that your tenant is currently under should come first. Renters may face worry if there is a change in the ownership of the rental home or apartment they occupy because this might throw their lives into disarray and make the future less predictable.
When putting a rental property up for sale, the renter should be informed as far in advance as possible and should be consulted about what they feel is the most appropriate next step. In the event that open inspections are required, renters should be given as much advanced warning as is practicable.
Because landlords may have the power to periodically raise the rent on their properties, you should evaluate the rental agreement that you have because of this possibility.
Even though no tenant ever likes to pay more rent, property owners sometimes find it necessary to raise rates in order to cover the ever-increasing expenses associated with property maintenance.
It is best practise to notify renters of a rental increase in a timely manner, following your rental agreement and other laws, rather than waiting until the lease ends to do so. This is because waiting until the end of the lease could result in the renter leaving the property.
If tenants are told in advance of a rate rise and are satisfied that it is reasonable, it is possible that they will remain in the rental unit.
Be truthful
Tenants, regardless of how careful they are, have the ability to cause damage to a home. There is always the possibility of accidents occuring, but if a tenant has a good track record, there is little use in adopting a tough stance with them.
Landlords should seriously consider purchasing specialised landlord insurance to protect themselves financially in the event that something unexpected occurs. This may cover both intentional and inadvertent damage, however if the landlord and tenant have a good relationship, it is expected that intentional damage will occur far less frequently.
The following five factors can harm a landlord-tenant relationship
Real estate is often regarded as one of the most lucrative investment opportunities available in Australia; thus, an increasing number of individuals are finding themselves in the role of landlord.
Nonetheless, successfully managing the landlord-tenant relationship can be a difficult task. If any party or both parties fail to live up to their obligations in the partnership, the relationship will deteriorate quickly. If a dispute cannot be resolved amicably, it may be brought before a judge for resolution.
A happy working relationship between a landlord and renter could be derailed by a few potential sour grapes, which are provided in this passage.
Disruption in the flow of communication
It is absolutely necessary for landlords and tenants to have effective communication in order for conflicts to be rapidly and peacefully handled. However, because communication is a two-way street, it may be incredibly difficult for a tenant to get things corrected or for a landlord to collect past-due rent if one side is prone to leaving angry phone messages or not answering at all when the other party makes repeated attempts to contact them.
Because there are always two sides to a story, it is polite to remain silent and listen to what the other person has to say.
Insufficient mutual regard
When a renter signs a lease for a rental property, they take on the responsibility of treating the property with respect throughout the term of the lease.
This requires maintaining it, keeping it clean and organised, and informing the landlord if something in the space breaks. Tenants who cause damage to a rental property run the possibility of losing their security deposit when their lease term is up or of being asked to leave their unit earlier than expected, both of which are unacceptable outcomes in the eyes of a landlord.
In the same way, when performing inspections, a landlord must respect a tenant's rights and give sufficient warning before entering the property. Tenants hold the right to refuse access to a landlord who turns up uninvited.
Being irrational
A tenant who is continuously whining to their landlord on the phone will soon find that their case is postponed. The landlord could take a while to act when something goes wrong since they are unsure of how critical the situation is.
Should tenants contact their landlord only when something has to be fixed or repaired?
In the same way, landlords must arrange repairs as soon as something breaks. "Leaving it" is a breach of the tenancy agreement's duty of care and won't win you any favours from your tenant.
Accidents happen
Because your tenants are just people like you and me, you owe it to them to give them a second chance if they make mistakes that result in property damage, throw events that are a bit too loud, or fall behind on their rent payments.
On the other hand, don't give in easily either. There are some renters who want to push the boundaries to see what they can get away with, and if you are too accommodating, you will end up being the one who is responsible for paying the rent.
Remind them, in a manner that is polite but strong, of the duties that come with being tenants, as well as the risks that come with not paying the rent on time several times or causing a disturbance in the neighbourhood.
Failing to keep promises
Trust is absolutely necessary in the relationship that exists between a landlord and a renter. To put it another way, once you commit to doing anything, you should make sure you actually carry it out.
For landlords, two instances of this would be organising a repair or extending a lease for an additional period of time. It could involve tenants agreeing to pay for damage that was caused accidentally or reducing the amount of noise that they make. If you find that you are unable to keep a commitment, you should talk to the other person about it and come up with alternative action plan.
As an alternative, if something can't be done right away but you're working on it and letting people know, it will help keep everyone satisfied. When trust is broken between people, it can be challenging to go forwards, and the situation may remain stagnant for a very long period.
Managing problematic tenants
Everyone has heard terrible stories about landlords who were stuck with unsavoury tenants at some point in their careers. They abandon the once immaculate property in a dirty state after not paying the rent and transforming it into something else entirely.
Unfortunately, bad tenants come in all shapes and sizes, and before investing in real estate, every investor needs to take into account the possibility that they will have to deal with problematic renters. Despite the fact that they aren't necessarily as terrible as the nightmare tenants described earlier, they nonetheless have the potential to cause you a significant amount of stress and unhappiness.
Let's take a look at the common problems that are caused by terrible tenants, the ways in which these problems can be resolved as fast as possible, and the techniques that can be used to avoid future problems caused by bad tenants.
Common issues brought on by bad tenants
Even if you thoroughly vet potential tenants, you can still end up with tenants that are a constant source of stress. Among the most prevalent problems are:
- Defaulting on a rent payment. Bad tenants might cost you a lot of money since they may repeatedly ignore their commitments or even miss payments.
- Causing harm. If a tenant doesn't take good care of your rental property, you might be stuck with expensive repair costs.
- Carrying out illegal behaviour. Tenants operating a drug lab, selling stolen goods, or engaging in criminal activities outside your rental property can have severe effects.
Dealing with the additional issues that troublesome renters can cause can be another source of stress for landlords. For instance, you could have a renter that is always making complaints, and you could be wondering whether or not they have genuine concerns that you can help them with.
Having to deal with difficult tenants may be time-consuming and stressful for the landlord. Problems might range from excessive requests for upgrades to the rental property to complaints about noisy neighbours.
Managing challenging tenants
Here are five steps you can take to help deal with challenging renters as smoothly as possible and stop minor disputes from turning into a major headache:
- Identify the situation. Evicting a tenant or allowing them out of their contract early should only be done as a last resort because a high tenant turnover is never desirable for a property investor. Instead, evaluate the problem and see if there is a simple fix that will satisfy both you and the tenant.
- Remove emotion from the situation. Never let your emotions govern your decisions when it comes to investing. Sometimes the best course of action is to step back and consider the situation logically rather than allowing your emotions to control you. Keep your composure and speak openly and honestly about any difficulties.
- Communicate. In the short- and long-term, working to establish positive relationships with your tenants can help you avoid a lot of stress. Additionally, you might be surprised by how many problems can be resolved by simply speaking with a renter, paying attention to their concerns, and demonstrating your willingness to look for the best solution.
- Understand when to be resolute and when to be flexible. Sometimes you just have to go with your instinct and determine whether a tenant is being dishonest with you or actually has a problem. For instance, if a formerly dependable tenant struggles to pay the rent, it's possible that they are having immediate financial difficulties as a result of losing their job. In this situation, delaying the eviction process while they organise their finances may end up working out much better in the long run.
- To support your claims, refer to the rental agreement. In the event that you ever find yourself in need of assistance with your requests, make it a point to consult the rental agreement, which contains information on the rights and responsibilities of a tenant. You'll find some helpful information on some of the terms and conditions that you ought to include in the contract a little bit later on in this piece.
What you can do
Learn your rights
Before you purchase your first home for investment purposes, you should make it a priority to educate yourself thoroughly on the laws governing not just the rights and responsibilities that you have as a landlord but also the rights that your renters have. The tenancy laws in each of Australia's states and territories are distinct; for more information, please refer to the appropriate Residential Tenancies Act.
- Advising a tenant of a violation of the rental agreement
- How much time is given to the tenant to make the necessary repairs; and
- How to end a lease if a breach is not resolved
Conducting a study in advance of a problem will guarantee that you are ready to take action if issues arise.
Obtaining the appropriate agreement
There are various terms and conditions you should think about inserting in the leasing agreement to ensure that you have the legal upper hand if issues with your tenants develop. These consist of:
- The cost of the rental and the due date
- Tenants are responsible for keeping you informed of any maintenance concerns and paying for any damage they create.
- The maximum number of tenants who may occupy the premises
If you ever need to send a breach notice, including these requirements in the agreement will be beneficial.
A breach notice being sent
You must send a breach notice as quickly as feasible if a tenant violates the tenancy agreement's provisions. If you later change your mind and decide that you want the renters to be kicked out of the property, you are required to take this necessary legal procedure. The legislation of each state and territory detail how a breach notice is to be delivered as well as the amount of time renters have to correct any infractions. If the problem has not been resolved by the end of this allotted amount of time, you have the right to give notice of termination.
Issuing a termination notice
States also differ in terms of the specifics of the procedure and deadlines for giving notice of termination. For instance, tenants must be given at least 14 days in NSW to leave after receiving a termination notice, whereas the requirement is only seven days in Western Australia.
How to respond if your tenant won't leave
Imagine if the tenant disregarded the notice and left the property without giving you any notice. In such a scenario, in order to successfully regain your property and do it in a lawful manner, you will need to take the appropriate legal actions in your state or territory. In most cases, this necessitates submitting a request for revocation to the relevant judicial body. Your tenant will be given a certain amount of time to vacate the property before law enforcement can forcibly evict them from the property. Every state has its own method of doing things.
If the tenant does not quit the property by the specified date, you have until the end of the sixth month to file a petition with the Supreme Court for a writ of possession. As a direct consequence of this, the sheriff's office will initiate the eviction process to remove the tenant from the rental property.
Ensure that you have landlord insurance
The only other thing you need to do is check that the amount of coverage provided by your landlord insurance is adequate. This will safeguard your structure and its contents not only against fire, storm, and other dangers, but it will also cover malicious damage caused by renters and lost rental income in the event that they default on their rent. This will protect your structure and its contents against fire, storm, and other dangers.
How to choose the ideal tenants
- Hire a competent property manager. If you are a novice investor in real estate, hiring a reputable property manager with experience will increase your chances of finding a dependable tenant. Your property manager is aware of the qualities to look for in a renter as well as any "red flags" that indicate candidates should steer clear of.
- Consider the renters you wish to bring in. When selecting an investment property, bear this in mind if you want to get tenants from a particular demographic. Additionally, keep in mind that how you exhibit your property will affect how the tenants handle it, so a spotlessly presented house has a greater possibility of luring excellent tenants.
- Employ a database. When screening rental applications, real estate agents and landlords can consult one of the many tenancy databases that compile lists of problematic renters. These websites, like the National Tenancy Database, compile a list of bad tenants whose leases have expired, whose rent is much behind on payments than their security deposit, or who have broken the terms of their lease.
- Screen tenants. To ascertain whether a possible tenant will be able to pay the rent, check their references and even take into account credit checks. Even if a prospective tenant aced every exam, if you're still not sure whether they'll be a good fit, trust your instincts and walk away.
- Maintain routine contact. One of the finest things you can do to avoid any issues is to communicate with tenants on a frequent basis. This will enable you to remain on top of any maintenance or repair issues, and by being approachable and approachable, you should be able to forge positive relationships with your tenants.
- Perform routine inspections. How frequently you are permitted to inspect a property you own depends on the legislation in your state or region. By making use of your entitlement to routine inspections, you can find out about any issues as soon as possible, such as property damage or an excessive number of occupants.
In conclusion, it is essential to keep in mind that the vast majority of renters are trustworthy and truthful people. As a result of this, you should be careful not to allow a single poor experience shape how you interact with all future tenants. You should make sure that you follow a few easy steps in order to maximise your chances of finding a great tenant, and you should also make sure that you have a plan in place in case problems do arise.
Would you like to speak to a specialist? Book a complimentary discovery session by calling: (03)999 81940 or emailing team@klearpicture.com.au.
- If the tenant does not evacuate the property by the specified date, an officer of the sheriff's department will evict them from the premises. As a result, you will need to get an order of possession from the tribunal.
- If the tenant does not vacate the premises by the specified date, you will have thirty days to file an application for an order of possession with the court instructing them to do so by a particular date.
- If the renter does not quit the property by the specified date, you have the option of obtaining a warrant of possession, which gives the police the authority to remove the tenant from the premises.
- If the tenant does not vacate the premises by the specified date, you will be required to make an application to the arbitrator or judge for a termination order and a warrant of possession. As a direct consequence of this, the tenant may be kicked out of the property by the police.
- In the event that the renter does not vacate the premises by the specified date, you will have thirty days to file a petition with the Magistrates Court requesting an order of possession. If the renter continues to refuse to leave, you have the option of requesting a property seizure order, which would result in the tenant being evicted by a court bailiff.
- If the tenant does not vacate the property within the specified time frame, you are required to make an application to the tribunal in order to receive an eviction notice and a request for possession. There will be a bailiff-assisted eviction taking place.
- If the tenant does not vacate the property by the specified date, you have the option of asking the tribunal to issue a possession and termination order. If the renter continues to resist leaving the home, you have the option of requesting an eviction warrant from the authorities so that they can remove them from the premises.
- If the tenant does not evacuate the premises by the specified date, you have the legal right to petition the Magistrates Court for a possession order. The tenant will be kicked out of the rental property by a law enforcement officer.
- Blogger: Carolyn Parrella, executive manager, Terri Scheer Insurance. A happy tenant often means a happy landlord. ...
- Attend to maintenance issues promptly. ...
- Undertake regular inspections. ...
- Maintain positive relationships with tenants. ...
- Consider the tenant's needs. ...
- The Top 7 Qualities All Good Tenants Have. ...
- A good tenant is responsible. ...
- A good tenant is respectful. ...
- A good tenant is able to pay. ...
- A good tenant is creditworthy. ...
- A good tenant is honest. ...
- A good tenant is clean. ...
- A good tenant is drama-free.
The most important quality of a good tenant is honesty. Honesty is so important, it gets its own section beyond the top ten. ... While a tenant isn't required to share all their personal information with their landlord, they are required to pay their rent throughout the lease term.