Contract of Lease Template

[metamorphosis]

Hi All

Does anyone have a template/or idea of how I should write up a lease agreement?


I am going to rent my IP privately and not through an agent, and also I know the tenants, I just want to make sure that they are clear on want I expect of them.

Thanks

 

[Kevmeister]

I believe there is a standard Residential Tenancy agreement which you can obtain fairly easily, since many "do it yourself" landlords use it.

I don't think that just because you know the tenants you can relax your guard - these might well be the same people (god forbid) who might expect, because they are your friends (?), that if they lost their jobs you might give them free accomodation.

And in the goodness of your heart you might well do that if you can *afford* it, but, if not ...

These agreements are for the protection of both parties. You may well find that by using a standard agreement there is no question of (or reduced question of) having a one-sided agreement.

 

[Sunstone]

Dear ldiep,

For VIC what you are looking for is on the following link:

http://www.consumer.vic.gov.au/cbav/fairsite.nsf/pages/of_homesrent_forms

However think SERIOUSLY about this.

Managing properties is not for everyone and is not a hobby.

Key points:

-As a rule self-managed properties must not be more than one hour drive from where you are located. My preference is for under 30 minutes.
(Note that this can limit your opportunities but that is the price for self-management.)
-You should run it through a business that you own or in the case that you have a job you must have the flexibility to meet potential tenants and take care of problems WHEN THEY HAPPEN.
-You must have systems in place to run this business including for 1) Tenant selection (This is not just based on a gut feeling. Do you have access to a tenancy database?) and
2) Problem resolution.
-You must be able to say no and have people and sales skills. General business skills are always a plus.

"What is your end goal and plan?". If it is not to manage properties or to make it part of a real business then the implications of what is being taken on should be seriously considered.

As Kev says -Can you say NO to your tenants when it counts? Can you increase the rents at the highest possible % every year? Being nice is well and good but is not always financially prudent.

Cheers,

Sunstone.

 

[metamorphosis]

Thanks for the advice Sunstone, I'm only planning on renting the property to the family friend for 12 months. The friend is also a builder and will be able to help me do minor renovations. However after 12 months I will be looking to passing on the lease to an agent.

I realise this is not an ideal situation, but sometimes when it comes to family and friends, money doesn't seem to matter. (for the moment, that is!)

 

[Lotana]

Finding a tenant and managing the property are two separate activities. You can do any of them yourself or outsource any of them to an agency. I prefer finding a tenant myself (saves a letting fee of 2 weeks rent), but handing the lease over to an agent for day to day management.

Just my 2 kopecks.

Cheers,

Lotana