Tag Archives: Rental Tenancy Act

Not Paying Your Rent Has Consequences…

Because we work in the real estate industry, it’s much easier for us to understand the implications of things like late rental payments on landlords. So if you’re a tenant, this might be a good read for you because it will help you understand what happens when you’re late paying your rent.

Property investors provide a means of housing for people who prefer to rent or can’t afford to buy, but that doesn’t mean they’re loaded with cash. For many mum and dad investors, they’re just as cautious about family budgeting as anyone else so when their tenant doesn’t pay their rent on time, it can have dramatic consequences.

1) Late rental payments mean the investor doesn’t get the money they expect to receive from that property.

2) This could disrupt budgeting for their investment mortgage payments and leave them out of pocket quite significantly.

3) If this happens consistently, the tenant may be issued with notices about their arrears, and eventually could be asked to vacate the property so that the investor can find a more reliable tenant. This isn’t a good prospect for tenants, and not ideal for investors because they’ve entered an agreement with the tenant that they would pay their rent on time.

4) Because most investors rely on the income from their investment property to cover some of the cost of the mortgage of the investment property, if things become too financially difficult they may have to sell the investment property, which is not only a major inconvenience for tenants, but the property could be sold to anyone… and may not be another investor.

5) With very low vacancy rates here in Mudgee, demand is high, so losing a secured rental property definitely isn’t something that most tenants in this area would be keen on.

The lesson here is that as tenants, you need to ensure they’re budgeting for your rent as a major priority because the consequences of paying your rent consistently late can be more than you think. So hopefully this post has given you some insight into why it is important not only to the landlord but to yourself as a tenant, to pay your rent on time.

New Tenancy Act big news for Rental Property Owners in Mudgee

As you may be aware from recent media the residential tenancies act 2010 has been passed by the NSW parliament and is proposed to come into effect on 31 January 2011. If you’re an investment property owner in NSW, this can mean some important changes for you – so what are the main reforms in the Act?
 

1.        “No grounds” termination notice
The act increases the notice given to tenants who are no longer in a fixed term lease from 60 days to 90 days.

2.       “rent arrears evictions” The act will give a guarantee to tenants that their tenancy can continue if their rent arrears are paid of if they follow an agreed repayment plan, however this guarantee will not apply if the tenant is shown to have frequently failed to pay their rent on time.

3.       Alterations
The act gives tenants greater flexibility to add fixtures or make minor alterations at their own expense, provided they obtain the landlords consent. Landlords are able to reasonably refuse such requests. For example if it involves painting the premises or structural changes.

4.       Sub-letting
The act gives tenants greater flexibility to sub-let part of the premises or wishes to include an extra co-tenant, provided they obtain the landlords consent.
 
These new laws emphasise the importance of selecting a professional property manager – if your property manager isn’t abreast of the new laws and changes it will affect how well they can look after your valuable investment.
 
So please, only appoint a property manager that has experience and preferably one with some experience as a landlord – then they’ll have a great grasp of what is in your best interest.