Changes to the Residential Tenancies Act came into effect on 23rd March this year. Today I thought we should discuss the new break fees for fixed term agreements.

When a tenant signs a lease, they should be committed to staying for the entire fixed term, otherwise the tenant may need to break their fixed term lease which will incur a penalty. This is called a break lease fee.

For tenants that have signed a lease from 23rd March onward, and the lease is for a term of three years or less, their break lease fee will be calculated based on what stage of the agreement they are in.

• Four weeks rent if less than 25% of the agreement has expired.
• Three weeks rent if 25% to 50% of the agreement has expired.
• Two weeks rent if 50% to 75% of the agreement has expired.
• One weeks rent if 75% or more of the agreement has expired.

For example, if two months of a six-month tenancy agreement has expired, that would be 33% of the lease term. Therefore, the tenant would need to pay a fee equal to three weeks rent to the landlord to end their agreement early.

However, if the tenant signed the lease before 23rd March, before the new legislation came in, these fees are not applicable to them. These tenants would still be bound by the former agreement rules.

For more information go to the Fair-Trading website or alternatively, contact us at Century 21 Central West.

Today we are discussing the advantage of using a real estate agent to manage your rental property. Private landlords often feel like agents don’t offer good value for money. They might have had a bad experience with an agent, and feel they are better off doing it themselves.

As agents we are often called to assist private landlords when things turn sour between tenants and themselves. The tenant might have fallen behind with rent and the landlord doesn’t know how to address the issue, or the tenant is not maintaining the property. Quite often we step in as the third party, negotiate, and find solutions. This is where our experience and knowledge of appropriate legislation pays off. We are used to handling all kinds of tenancy related matters, and have the time and energy to commit to it.

We aim to minimise costs for the landlord with professional management and avoid costly bills that they may incur if things go wrong. At Century 21 Central West, we have an experienced team dedicated to the fields of leasing, managing, and maintaining rental properties.

Leasing is the initial letting of the property, from advertising to qualifying tenants prior to letting them have the keys. Managing includes collecting rent on time, ensuring all required documents are completed and keeping up to date with legislation. We also have a routine inspection manager and are proactive regarding repairs and maintenance required.

If you are considering using the services of an agent, contact us at Century 21 Central West for our Landlord Information Package. Email tara.kelly@century21.com.au or call 0418 465 407.

We have had many tenants moving in and out of properties recently, and I thought it a good time to clarify what the term “fair wear and tear” means.

When it comes to Residential Tenancy Agreements, fair wear and tear means the normal deterioration of a property over time from ordinary, everyday use.

Some examples of fair wear and tear consist of faded curtains, frayed cords, furniture indentations and traffic marks on flooring, scuffed wooden flooring, faded or chipped paint or movement cracks.

Some examples of what is not fair wear and tear are missing or torn curtains, large marks or holes in walls, significant damage to flooring such as stains or burn marks, badly scratched or gouged wooden floors, unapproved paint jobs, burns or cuts in benchtops, and damage caused by pets.

The tenant is responsible to rectify any negligent, irresponsible or intentional actions that cause damage to the property. These are things we look for during our regular routine inspections rather than just waiting until the end of the tenancy.

Should we discover that there are some items that need to be rectified, we will address this as soon as possible to achieve a suitable solution.

Alternatively, if it is the end of the tenancy and damage is noted on the outgoing inspection, we will claim the tenant’s bond to reimburse or compensate the landlord for this.

For more information on this topic please feel free to contact the Century 21 Central West team today.

When looking at renting out a property there are a few things that can mean the difference between a successful investment, and a real estate nightmare.

It is crucial to have a property manager who stays on top of maintenance and has a great relationship with local tradespeople. When looking for a property manager, investors should look for one that is going to maintain the property, so the quality remains.

Consistency and integrity during regular property inspections, clear and concise communication with owners about the required repairs, as well as proactively organising repairs with tradespeople, are just some essential requirements of a successful property manager. Leaving repairs for an extended amount of time only creates larger problems, so we work to identify anything that needs doing and try to organize repairs as soon as possible to avoid further issues.

At Century 21, Tara and her team keep property owners updated throughout the repair process, ensuring the work has been done and to a high standard and sending images of the completed work for peace of mind.

The Century 21 property management team has an excellent relationship with local tradespeople which makes all the difference when getting the job completed to a high standard and in a suitable time frame. For investors to be certain that their property is well looked after and that the value of their property continues to increase, look no further than Tara and her team at Century 21 Central West. For more information about how the property management team at Century 21 can assist you with your investment property, please feel free to contact us today!