Landlords who do not have a property manager look after their investment property for them and don’t insist on having their tenants sign a rental lease put themselves at risk of running into serious problems.
You may only be renting a property for a short period of time, for instance a period of six months, but the problems that can arise during that time can be significant. If you’re thinking about renting your property to tenants, it’s imperative that you insist on having them sign a lease.
- Signing a lease provides you with legal options to pursue should problems arise with your tenants
- Signing a lease provides a legal framework in which disputes with tenants can be resolved
- Signing a lease enables you to legally ask tenants for bond which provides you with financial security
If you don’t insist on having tenants sign a lease for the period of time in which they’ll occupy your rental property, you’re putting your investment at significant risk.
Bond Obligations
Landlords’ obligations to their tenants differ from state to state, so be sure to check your obligations to your tenants in the state or territory in which your rental property is located by accessing the local rental authority’s website.
Generally speaking, four weeks rent is the permitted bond amount. However, for high-end properties, fully-furnished properties or properties that warrant higher than average rental amounts, it may be legally possible to ask for a larger rental bond.
If you believe your rental property warrants a larger than usual rental bond, you must first check with your local rental authority. And don’t forget to provide the tenant with a Condition of Premises Report either, because this document is essential for proving the condition of the rental property before the tenant takes over occupancy.