In a series of articles we will be answering a couple of the most frequently asked questions to the best of our ability, when in doubt always get advice from a qualified professional.
1.Do I have to sign a lease agreement with my tenant?
This is always best as a written agreement should state all the terms agreed upon by the landlord and the tenant so it will be easier to settle any disputes in the future. However a verbal agreement is just as binding, but you as a landlord have to be able to supply a written contract if the tenant requests one.
2.What information should the lease require?
Both the landlord and the tenant’s name.
Both the landlord and the tenant’s postal address.
The address of the property the tenant has agreed to lease.
The obligations of each party, usually the tenant pays for the water and lights and the landlord pays the rates.
The amount of rent the tenant will be paying and by how much the rent will increase upon renewal of the lease agreement.
In what kind of instalments will the rent be paid eg; monthly.
Any other reasons why the rent would increase, for instance a rates increase.
The amount of deposit the tenant has paid.
The terms by which either party must give notice to vacate the property or cancel the lease.
A list of defects the property may have and the rules which the tenant has to abide by regarding pets; etc.
3.May I ask for a deposit?
Asking for a deposit is well within your rights and is to be returned to the tenant upon expiry of the lease, if the tenant has damaged the property beyond reasonable wear and tear the deposit is to be used to cover the cost of repairs.Remember the deposit must be put into an interest bearing account and that you as the landlord must be able to provide receipts for any repairs done that were paid for with the deposit.
Tell us how having a signed lease agreement and deposit has helped you in the past.
