Property Owner

Taking charge of your investment property offers unique advantages, allowing you to maintain control and cut down on agent costs. However, there are pitfalls that property owners should be wary of. These instructions are fairly consistent across Australian states and territories however you should seek specific information for your state as sometimes there are extra conditions and requirements to follow.

Access

One prevalent complaint received by the NSW Department of Fair Trading concerns property access without proper permission. Even though you retain control over management, adhering to rules about access is crucial. Tenants have rights, and landlords must seek permission to access the property, with exceptions in specific cases.

Landlords often face issues when tenants deny access for necessary repairs. In such cases, if proper notice is given, landlords chat with the LANTECH support staff for guidance on how to proceed.

Bonds

A frequent error made by self-managing landlords is neglecting to lodge rental bonds with your state’s specific ombudsman. It is imperative that landlords must lodge bond money with Fair Trading and should not keep rental bonds in personal bank accounts.

Some landlords mistakenly request more than four weeks' worth of rent as a bond, violating regulations.

Documentation

It is important to treat a rental property like a business, stressing the need for written agreements. While it is generally not mandatory, having a written tenancy agreement is advisable. It serves as protection for both tenants and landlords, preventing issues during the lease period. LANTECH helps with this by automatically generating lease agreements based on the information provided by property owners, tenants, and real estate agencies (in the event an active lease is transferred from a REA to LANTECH).

A tenancy agreement should detail lease inclusions and include a condition report documenting property condition at move-in and move-out. Photos can serve as evidence for repairs paid from the bond.

Rental Payments

For rental payments, it is recommended to keep receipts or keeping a tenant ledger. LANTECH’s Transaction overview (which can be accessed by logging into your account) will provide suitable coverage and visibility of the ins and outs. This benefits both landlords and tenants, offering proof of payment and aiding future rental applications.

Charging for Utilities

Landlords should be aware of clear rules regarding charging for utilities. Charging for water usage has specific guidelines, especially in situations with shared water meters.

In most states and territories, If the property doesn't have its own meter, the rental provider must pay; the tenant is not responsible for water bills and these must instead be paid by the owner. In this event, the owner must pay this bill voluntarily and externally (i.e. direct debit with the council) and there will be no functionality within LANTECH. If the tenant is receiving these bills, the tenant should reach out to the landlord and advise. The tenant should not pay these bills and be later compensated by the property owner.

Staying in Touch

It's common for landlords to only provide a mobile number, making communication challenging. LANTECH helps with this by providing a dedicated platform for tenant and landlord to communicate. However, it is sometimes useful for landlords to share their full contact details for effective communication. Tenants won’t often reach out for casual conversations but in the event a critical matter comes up it may be easier for both parties to reach each other quickly.

Seeking Help

When uncertain, landlords can seek advice from LANTECH support. Free assistance, including negotiation and mediation, is available to help resolve issues, ensuring a smoother landlord-tenant relationship.

As an integral responsibility for property owners, the LANTECH platform emphasizes the significance of managing your tenant’s security bond. Every property owner has the right to collect a bond from their tenant, serving as a trust-based security deposit against potential rent defaults, property damage, or lease breaches.

It's essential to adhere to state laws governing the maximum allowable security deposit, its storage requirements, and the proper refund procedure at the lease conclusion. While LANTECH efficiently handles various aspects of property management, it's important to note that the management of security bonds falls outside the scope of our platform. Property owners must independently oversee this crucial aspect.

Ensuring compliance with state regulations is paramount to prevent potential disputes between tenants and property owners. While property managers are typically adept at navigating bond refund complexities, LANTECH encourages owners to proactively manage expectations regarding bond-related matters.

Property managers on the LANTECH platform excel in overseeing the condition report process, facilitating agreement between tenants and owners on the property's state before occupancy. Additionally, regular inspections conducted by our trained property managers contribute to a streamlined lease experience, minimizing surprises at the lease conclusion and promptly addressing maintenance and damage issues as they arise.

How to Manage Bond Claims with LANTECH Platform

Ensuring a seamless bond return or claim process is a top priority at LANTECH. Before initiating the bond refund, it's essential to conduct a final inspection for a comprehensive assessment.

The purpose of the bond, acting as a form of 'insurance,' is to protect property owners from financial burdens resulting from property damage, cleaning expenses, or outstanding rent at the end of the tenancy.

Note: The bond cannot be used to cover rent payments, including the final rent installment, as it is against the law.

The bond management and refund process vary by state, but the overarching principles apply universally. Typically, the bond is held by a state bond authority, and after the tenants vacate the property and return the keys, it can be applied for through a form or an online application process.

Both property owners and tenants usually need to sign off on the bond return, ensuring a fair resolution and preventing disputes. This collaborative approach prevents unwarranted claims or disputes over property conditions.

For Property Owners in Western Australia (WA):

• Explore the WA Commerce website for general information on the process.
• Utilize the Joint Application for Disposal of Security Bond, completed online, printed, and signed by the landlord and all tenants. Submit it to the Bond Administrator via email or post.

For Property Owners in Victoria (VIC):

• Refer to the Consumer Affairs website for general information.
• Access the unique Bond Claim Form on the RTBA website for download.
• Follow instructions to claim/refund the bond in VIC, specifying amounts for damages in the Bond Claim Form.
• Processing takes 2-3 business days, and the refund is issued via EFT.

For Property Owners in New South Wales (NSW):

• Visit the Fair Trading website for general information (under 'Moving Out - includes bond').
• Log in to the Rental Bonds Online (RBO) if the bond was lodged online, or use the Claim for Refund of Bond Money form if lodged offline.
• In case of a dispute, tenants can submit a separate Claim for Refund of Bond Money form without the owner's signature. The owner has 14 days to contest or agree.

For Property Owners in South Australia (SA):

• Check the SA Gov website for general information.
• If the bond was lodged on Residential Bonds Online (RBO), dispute claims can be handled through the RBO. Otherwise, complete the bond lodgement form and return it to Consumer and Business Services.
• The bond can be returned via EFT or cheque.

For Property Owners in Queensland (QLD):

• Visit the Residential Tenancies Authority (RTA) website for general information.
• Make bond refund claims to the RTA using the Refund of Rental Bond (form 4). Complete details for each tenant and owner, including bank details for the refund.
• Lodge the form online or by post to the RTA.

For Property Owners in Northern Territory (NT):

• Refer to the Consumer Affairs website for general information.
• Unlike other states, the bond in NT is held by the landlord/agent. Refund within 7 business days of tenant vacating or notify withholding reasons within the same period.
• Disputes can be resolved by contacting Consumer Affairs at 1800 019 319 or through the Northern Territory Civil and Administrative Tribunal (NTCAT).

For Property Owners in Tasmania (TAS):

• Check the Consumer Affairs website for general information.
• Initiate a claim in MyBond within three days of receiving keys. Tenants receive notifications, enabling them to approve or dispute the claim.

For Property Owners in the Australian Capital Territory (ACT):

• Visit the Tenants Act website for general information.
• Provide tenants with a signed Bond Claim form within 3 business days after tenancy ends. If claiming any part, provide a written statement outlining the deduction reasons with cost estimates.
• Send the completed and signed bond claim form to the Office of Regulatory Services. If a dispute arises, it may be referred to the ACT Civil and Administrative Tribunal.

How often?

Optimizing Routine Property Inspections

Ensuring your property remains well-maintained is vital, and periodic inspections help achieve this. You can request for tenants to complete their own inspections; they’ll be required to take photos on the day of the inspection and upload them to the LANTECH portal within a 4 hour timeframe.  The frequency of inspections varies by state, so it's crucial to follow local regulations. Here's a concise breakdown:

1. NSW:
• Four inspections per year with 7 days' notice.
• More information here.
2. VIC:
• Biannual inspections with 7 days' notice.
• More information here.
3. QLD:
• Quarterly inspections unless agreed otherwise.
• More information here.
4. SA:
• Inspections every 4 weeks with 7-14 days' notice.
• More information here.
5. WA:
• Up to 4 inspections per year with 7-14 days' notice.
• More information here.
6. TAS:
• Inspections every 3 months with 24 hours' notice.
• More information here.
7. ACT:
• Two inspections per year, plus first and last month inspections with 1 week's notice.
• More information here.
8. NT:
• Inspections every 3 months with 7 days' notice.
• More information here.

Balancing Act: Quality vs. Frequency

While more inspections may seem beneficial, it's crucial to strike a balance. Tenants deserve peace and privacy, we recommend having 1-2 a year. This frequency allows property maintenance without disrupting tenants' lives.

Accessing and Inspecting the Property:

• Adhere to notice period laws and obtain tenant acknowledgment.
• Tenant presence is not mandatory, fostering cooperation.
• Respect the living space during inspections.

Key Inspection Objectives:

• Identify water leaks, pests, and property damage.
• Ensure proper functionality of fixtures and inclusions.
• Address potential future maintenance needs.

Open Communication Opportunity:

Inspections provide a platform for open conversations with tenants. Encourage them to voice concerns or suggest improvements without fear of repercussions, fostering a positive landlord-tenant relationship.

What should I look for?

If you do decide to attend in person then these are things you should keep an eye out for -Property Inspection Checklist:

Indoor Inspection:

• Ensure tidy presentation.
• Verify smoke alarm functionality (bring spare batteries).
• Check lights, switches, and kitchen appliances.
• Inspect sinks and taps for leaks.
• Assess flooring for damage or stains.
• Examine sliding doors and windows, including handles.
• Identify marks or holes in walls.

Outdoor Inspection:

• Confirm locks and handles on external doors.
• Evaluate garage organization and lock functionality.
• Check garden/lawn maintenance.
• Assess overhanging branches; trim if needed.
• Inspect gates and fences for damage.
• Look for excessive cobwebs under eaves.

Recording Results:

• Summarize findings in a brief report.
• Utilize available templates or create a simple table.
• Take photos of issues for reference.

Post-Inspection Actions:

• Express satisfaction or concerns to tenants.
• Engage professionals for necessary repairs.
• Address property maintenance expectations with tenants.
• If issues persist, review lease terms and chat with LANTECH support.

Completing a final inspection is a crucial step for LANTECH property owners, and it should be done within 3 days of the tenant returning the keys. Here's a detailed guide on how to navigate the LANTECH-specific final inspection process:

1. Comprehensive Property Inspection

Visit the property and meticulously compare the current condition with the entry condition report completed at the beginning of the tenancy. Document and capture photos of any areas that require attention due to lack of cleanliness or damage by the tenant. Fair wear and tear should be considered.

If the tenant pays the owner directly for water and electricity (not to the supplier), take meter readings and calculate the final water payment. It must be completed within 10 days of the tenancy's end, with the renter present or given a reasonable opportunity to attend.

2. Notify Tenant of Action Items

Reach out to the tenant via phone and email, outlining the specific actions they need to take, such as cleaning, repairing, or replacing. While LANTECH's platform automatically calculates final rent payments, the owner is responsible for determining any outstanding water payments (if electricity is paid directly to the owner).

3. Mutual Agreement on Bond Refund/Claim

Provide the tenant with a reasonable timeframe (typically 2 days, depending on the situation) to address the action items. It may be more efficient to mutually agree on a compensation figure instead of opting for cleaning, repairs, or replacements. The flexibility of this approach is beneficial for both parties.

Important Notes:

• Compensation Agreement: When determining the cost of items, there are no fixed costings. For larger items, obtaining quotes from tradespeople is advisable. In case of a Tribunal resolution, having 2-3 quotes for significant claims is necessary. For smaller items, like-for-like replacements are ideal. If identical items or parts are unavailable, agreeing on a compensation amount (based on costings from sources like Bunnings) is a strategic solution.
• Carpet Cleaning: Unless animal-related, owners cannot mandate professional carpet cleaning or pass on the associated costs. However, if the entry condition report indicates professional cleaning and the carpets are not in the same condition, requesting the tenant to professionally clean may be justified.
• Light Globes: If light globes were functional at the start of the tenancy, tenants are responsible for replacing them.

Checklist Before Bond Refund:

• Completion of the final inspection as outlined above.
• Return of all keys to the owner, confirming the tenant's relinquishment of property possession.
• Confirmation that all rent payments are up-to-date.
• Verification of water and other utilities payments directly made to the owner, ensuring they are current.

You’ve caught us at an early stage in our development and we haven’t quite built the architecture to allow you to advertise your property and screen tenants directly via LANTECH. As such, we’ve created a handy quick guide below walking you through the current process:

Advertise on realestate.com.au

• Complete the details for your property, add photos, property features/amenities and pay the charge (roughly $150)

Wait for applications and expressions of interest

• Be prepared to respond to people reaching out to let you know they’re interested
• Some people may want to inspect the property. Arranging to meet multiple people on the same day and time is an efficient way to knock out multiple inspections at once.
• Although this optional, it may help boost interest and get somebody in sooner rather than later

Tenant screening

Things to ask your applicants to provide is

• Copies of drivers license
• Income statements
• Let them know that for privacy they can mask all expense information – all you need to verify is that they have sufficient income to make rental payments

Note that it is illegal to discriminate applicants on:

• Gender, Age, Race, Religion, Marital status, Sexuality, Whether they have children, Mental illness, Pregnancy, Disability

NTD Check

• You can ask your applicants to voluntarily complete an identity check
• Note that this will cost your applicants $29 but can be a good litmus test to discern the truly motivated

Confirmation and onboarding

• Once you’ve selected the ideal applicants, get their contact details, the names of everyone who will be on the lease, and conduct a thorough condition report of the property
• Enter their details in LANTECH and we’ll create accounts for them, setup their profiles, and send them an email to prompt them to enter their payment details