Just like any sector, property management comes with its own set of terms and commonly used phrases, which pop up time and again when you talk about renting a property.
So let’s look at some of the most common rental terms, what they mean and how they impact both investment property owners and rental occupiers.
Rental agreement
Also known in some states as a lease agreement, the rental agreement is the key legal document that sets the terms of the rental arrangement.
Signed by all parties at the outset of the rental period, it defines who is renting the property, for how long, at what price, along with referencing the rights and responsibilities of the rental occupier, property manager, and owner.
Rental bond
The rental bond is a specific amount of money that is held throughout the rental period. Akin to a security deposit, it usually equates to two or four weeks rent, and is lodged with an independent body.
This bond is set aside to cover any costs associated with damage to the property by the rental occupier or outstanding rental payments.
When the rental occupier leaves the property, this bond is refunded to them, providing they return the property to its original condition and have paid their rent up until their exit date.
Entry Condition Report
When a rental occupier commences their agreement, they will be given a document known as the Entry Condition Report.
This detailed checklist outlines the condition of the property at that time, including anything that’s damaged or not working.
The rental occupier should carefully check this document, also noting the condition of all items mentioned, then sign the report and provide a copy to the property manager.
This document will later be referred to when the renter leaves to ensure the property is returned to the same condition that it was in at the start of the agreement.
Rental breach
A rental breach occurs when any member of the rental agreement fails to adhere to their responsibilities.
This includes late payment of rent; damage to the property; illegal activity at the property; failure of the owner to conduct required maintenance and repairs; and the owner, property manager, or tradespeople entering the property without required notice.
Entry notice
When the owner or their authorised representatives (property manager, tradespeople, etc) wish to attend the property, an entry notice must be provided.
This notice sets out the time and date they will attend the property and the reason for the visit.
Depending on that reason, different notice periods are required. For example a routine inspection will require a minimum of seven days’ notice in writing while non-urgent repairs and maintenance might require about two days’ notice.
Routine inspection
Carried out a maximum of four times a year at three-month intervals, routine inspections are designed to ensure the property remains in good condition.
This inspection is conducted by the property manager, who will visit the home, walk through the property and check for any maintenance issues.