‘Ten­ant-ready’ your in­vest­ment home

Whitsunday Times - - REAL ESTATE -

YOU’VE signed on the dot­ted line and are now the proud owner of an in­vest­ment prop­erty ... but what hap­pens next?

How does an in­vest­ment prop­erty turn into a rental prop­erty?

Real Es­tate In­sti­tute of Queens­land (REIQ) CEO An­to­nia Mer­corella said in the 21st cen­tury, hav­ing a rental prop­erty was much more in­volved than just col­lect­ing the rent.

“There are many sys­tems and prac­tices that are re­quired by leg­is­la­tion,” she said, adding that a prop­erty man­ager could help an in­vestor make their in­vest­ment ‘ten­ant-ready’ from the mo­ment they bought the prop­erty.

“Prop­erty man­agers have a work­ing knowl­edge of all the nec­es­sary leg­is­la­tion and have sys­tems in place that as­sist the lessor in meet­ing their leg­isla­tive re­spon­si­bil­i­ties,” she said.

The Residential Ten­an­cies and Room­ing Ac­com­mo­da­tion Act is the leg­is­la­tion that reg­u­lates ten­an­cies. But prop­erty man­agers also have to ad­here to other leg­is­la­tion, in­clud­ing the Com­pe­ti­tion and Con­sumer Act, and the An­tiDis­crim­i­na­tion Act dur­ing the rental process.

Un­der the Elec­tri­cal Safety Amend­ment Reg­u­la­tion (No.1) 2006, own­ers of leased do­mes­tic res­i­dences have to have a safety switch in­stalled for the power cir­cuit of the res­i­dence within six months of a residential ten­ancy agree­ment be­ing en­tered into.

As per the Fire and Res­cue Ser­vice Amend­ment Act 2006, ev­ery do­mes­tic dwelling in Queens­land must also have smoke alarms.

“Be­fore a ten­ancy starts, the lessor must have the smoke alarm tested and cleaned in ac­cor­dance with man­u­fac­tur­ers’ in­struc­tions,” Ms Mer­corella said.

“Dur­ing the ten­ancy, the ten­ant is re­spon­si­ble for re­plac­ing smoke alarm bat­ter­ies or ad­vis­ing the lessor as soon as pos­si­ble if the smoke alarm has failed.”

The State Gov­ern­ment’s pool fenc­ing leg­is­la­tion re­quires ev­ery residential pool in Queens­land to be fenced.

As well as main­tain­ing the fence, the REIQ also rec­om­mends lessors have the pool fence pro­fes­sion­ally checked.

Ms Mer­corella says be­fore a ten­ancy be­gins, un­der the Residential Ten­an­cies and Room­ing Ac­com­mo­da­tion Act, the lessor must make sure that the prop­erty is clean, fit for a ten­ant to live in and, to­gether with in­clu­sions, is in a good state of re­pair.

If fit­tings such as a dish­washer or an air­con­di­tioner are supplied at the be­gin­ning of a ten­ancy, Ms Mer­corella says the lessor has a le­gal obli­ga­tion to main­tain them through­out the ten­ancy.

Lessors also need to have a good look at their in­vest­ment prop­erty and iden­tify any po­ten­tial dan­gers, such as pavers that are loose, or nails stick­ing out of fences that may in­jure peo­ple.

Any po­ten­tial safety haz­ards must be rec­ti­fied so that the prop­erty is a safe place for a ten­ant to live.

It is also highly rec­om­mended that lessors have valid public li­a­bil­ity in­sur­ance cover (min­i­mum $10 mil­lion), as well as build­ing in­sur­ance and land­lords’ in­sur­ance which, depend­ing on the pol­icy, can cover such things as dam­age and rent de­fault in an in­vest­ment prop­erty.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.