I am going to manage our new investment home myself, and have found lots of great advice about all kinds of things – except these coupla questions.
1. Do the tenants pay excess water rates – or do we have to fork out for that? If so, I guess it goes in the agreement…?
2. There is gas fitted to the house, and the gas company charge bottle rental as well as a charge for refilling. Do we pay the rental or should the tenant? (And if so, how does that divvy up if they leave partway thru a lease year…?)
3. Where can I get hold of a tenancy agreement – or do I need to write my own?
Thanks in anticipation………Since no one has yet replied to my post, I thought i should – so it makes the topic look interesting!
Susiemac..
Well, sorry i can’t help with your first two points…but in regard to the third point, it might be worth trying to contact a local real estate office and see if they can give you a copy of their standard template, try to sell yourself as a owner looking/shopping around for an agent to represent them – might have more luck. It may also be worth checking with your states real estate institute (their links are at https://www.propertyinvesting.com/links).
I am currently in the US at the moment, but will be getting back to OZ next week (i have been here for 5 motnhs so am very keen to get my hands on a vegimite sandwich) anyway I think I have, or atleast should have, a copy of the one we gave our tenants (came from a RE Agent though)on file somewhere at home, so if you have no luck let me know and I will try to blow the dust off ours….
Pete
Hi Susie,
Firstly, i wouldn’t recommend managing your own property unless you have the time and can deal with tenants without being too soft. I’d rather pay my Property Manager a small commission (4% in Melbourne and 6.5% in Queensland) to do this for me as my time is too valuable.But if you do, i’d recommend reading some books on it first. There’s a couple of good ones out there written by Australians that may help you through the legalities and process.
Re: your questions:
1) This is negotiable and should be written into the lease. Personally, i pay for any excess water usage.
2) I would also pay for the bottle rental. I imagine it doesn’t cost too much plus of course it’s tax deductible. If you wanted to divvy it up between tenants, you’d have to split it pro rata to be fair.
3) Go to your local Real Estate Institute – they should be able to provide you with a copy of a standard lease. Or else go to a local agent and they may let you copy one of theirs if you ask kindly.Hope some of this info helps,
Quentin.Seems to me that if the tennants bought a house they would have to pay their excess water and bottle rental, so why would it be different given that they bought the house on (your) vendor finance?
Personally I’d try and have it included in their contract that they pay it to me and that I pay to the utility companies. That way if they “forget” to pay their rates for years on end that you know about it before the council rate sale sign goes up out front of your investment…[
]Quasimodo
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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
__________________________________________________H, Susie.
You might find a lease contract at the newsagents, and tenants pay for their own water and electricity. You should pay for the provisions of services, so the gas bottle is yours, the gas is theirs.
cheers[]Hi Susiemac
Firstly I agree with Quentin and for your first property get it managed for a while to get the hang of things. You can shop around and get a good management deal. If you do manage it yourself then the most important thing you need to educate yourself about is the tenancy act of your state. This sets out all the rules re notifications etc.
In regard to water the tenant is not up for any statutory charges ie service and sewer but is liable for water usage as long as there is a meter and you are being charged for water based on the meter. This is part of the tenancy act.
In regard to the rental on the bottle I think you are going to be up for it. One avenue you may want to explore is make the tenant fully responsible for the service. To do this I imagine you would need to cancel the service and get the tenant to reengage the service in which case the tenant will be liable for both the rental and the gas. Might be worth speaking to the gas supplier as to how this may be achieved. By the way what is the gas used for?
hth
Hi All
RE: Gas
In my case it is the tennants responsibility to organise the gas and pay etc if they empty. It should be treated like their electricity bill.Cheers Isagold
Hi Susiemac,
you may find lease documents etc on your State Govt website. In SA, for example, the forms are available from the Consumer Affairs site, or from their offices. The rules for residential tenancies, bonds, etc may be quite strict if you have formal leases, as protection for both landlord and tenant. As landlord you need all the legal protection you can get, so have everything in writing, preferably on Govt forms if available. (see recent tenants from hell post!).
TerryTerry
FinanceTry this site for a lease agreement
Hi Susie Every situation is different,i had two new houses built last year and landscaping cost $8000 ea .The last thing i want is for the gardens to die,i also dont want the tennants to waste any water that i will be paying for so in our agreement we go 50/50.The agent forgot to charge the tennant last time but that is another matter. Good Luck Andy.
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