Terms of Occupancy for Tenancy Agreement

nugley on 21/04/2019 - 19:49

I'm about to rent out a house using a property manager.

I've heard a few horror stories from colleagues and friends about their experiences with renting out their properties and they've highlighted the need to define the terms of occupancy in the tenancy agreement.

I'm looking to include the following:

a. The tenant(s) is not allowed to make structural nor aesthetic changes to the house, carport, garage and fences.
b. The tenant(s) is not allowed to make any changes to the land. This includes not planting trees nor plants on the property.
c. The tenant(s) is not allowed to park heavy machinery on the property.
d. The tenant(s) is not allowed to keep pets on the property.
e. The tenant(s) is responsible for paying water and electricity bills they incur during their tenancy period.

I would like to hear the terms of occupancy other people have included in their tenancy agreements when leasing out their properties. This would help me to identify other terms which I haven't considered for inclusion in a tenancy agreement.

Looking forward to hearing other people's experiences.

Home & Garden

Comments

  • jug123 on 21/04/2019 - 19:58
    +3

    most of those are std clauses, have you looked through a residential tenancy agreement?

  • spackbace on 21/04/2019 - 20:01
    +4

    Those are standard except plant trees and heavy machinery

    Methinks your friends horror stories are blown out of proportion

  • [Deactivated] on 21/04/2019 - 20:07
    +8

    I wouldn't sign that lease agreement.

    • Some Guy on 21/04/2019 - 23:27

      Why not? Which one/s are unreasonable?

      • WreckTangle on 21/04/2019 - 23:39
        +3

        Well the plants for one, so i cant have a tub for veges, or plant a sunflower, or a have a pot plant? Oh and the water bill…you can only pass on the consumption bit

        • whooah1979 on 21/04/2019 - 23:42

          Just let the weeds grow wild.

        • Some Guy on 21/04/2019 - 23:43

          Then those would not be planted on the property would they? A simple clarification on pot plants, as opposed to you digging a hole and planting a plant (as the clause says), would be all that's needed.

  • SmiTTy on 21/04/2019 - 20:47
    +4

    Assuming your property is in QLD, with (e) if you want them to pay water you need to ensure :

    -the rental premises are individually metered (or water is delivered by vehicle), and
    -the rental premises are water efficient, and
    -the tenancy agreement states the tenant must pay for water consumption.

    Source :
    https://www.rta.qld.gov.au/Forms-and-publications/Fact-sheet…

    You need to make sure your property meets the criteria of being "water efficient"

  • meowsers on 21/04/2019 - 21:07
    +4

    TBH just because it's written in the contract doesn't mean anything to the tenant who doesn't care. Choosing tenants wisely in the first place is what counts.

  • elgrande on 21/04/2019 - 21:16
    +6

    Sweet.. free gas and internet!

  • trustnoone on 21/04/2019 - 21:51
    +1

    Check outs fair trading for more specific residential tenancy agreement (can change from state to state) like this can come up with something more rounded? https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/00…

    May have a more up to date version?
    I think you're misunderstanding your friends here, you're worried about whats 'in the agreement' those horror stories come from people who don't care about the agreement or do it anyway, this is more like insurance and charge to tax for losses sort of thing.

  • GregMonarch on 21/04/2019 - 21:54
    +1

    Not sure why water & electricity debts would matter to a landlord (unless it's an addition on their own block - and if so - why use a property manager). i.e. If tenant 1 skips without paying utilities, it doesn't affect the next tenant in any way.

    With pets - tenants will just lie anyway. I'd do two things:

    1. Rip out the carpet. With dogs for example NO carpet cleaner gets rid of the stink, no matter WHAT they claim. They can't 'wash' the carpet like you can sheets or clothes, because mold grows before it dries (unless it's somewhere like Coober Pedy). So they're only quickly steaming a percentage of the carpet for a few seconds - that the animal has been drooling out of both ends on for months. Then they squirt deodorant around and it smells fresh. But come back in a few weeks after that's lost potency and you'll smell dog again. Removing the carpet not only solves this, it means you might get an asthmatic - who will clean, clean, clean! ;-)

    2. Don't put 'no animals' as a requirement. Leave the tenants to ask, smile, and say no prob. Then those who asked go to the bottom of the application pile.

    Even then you can't guarantee they'll stay pet-free. They could get an animal they take to a friends house on inspection days. You'll smell it and see the signs - even if it's 'outside only', but you won't be able to do anything to stop it. They could even turn nasty, stop paying rent to save before they leave over it, or go to some tribunal.

    If you want real estate without such hassles, then look at commercial real estate instead. In most cases they pay all the outgoings like rates, they do regular renovations to attract customers, insure the windows for damage, etc. Forum: www.propertyinvesting.com

    • Some Guy on 21/04/2019 - 23:35
      -3

      Ripping out the carpet means doing something to the flooring that could be very expensive. Leave the carpet in and let the lease-breaking pricks suffer the dog smell. Take some of their bond at the end of the lease to cover additional cleaning. If they've broken the terms of the lease by having a dog then they won't do well at any tribunal. Cover the stink for new tenants.

      • GregMonarch on 22/04/2019 - 00:31
        +1

        Well lease-breakers won't BE suffering the smell. They'll be gone. ;-D

        But like I said, cleaning does NOT get rid of dog smell for the NEXT tenant. It just masks it temporarily. Tenant #2 moves in and they're sneezing and itchy - miserable day and night - so they soon move again, causing unnecessary expense to the owner. Which can mean you get less applicants. Which can in turn mean paying $$$ in advertising the property for longer. It all depends what demand is where the property is located though.

        Besides, the OP may be be considering putting new carpet in before leasing the property. We don't know. As for cost - it depends on many factors. e.g. They might know a tiler, and/or who has a source of free or heavily discounted tiles. Or it could have floorboards and they've been thinking of sanding and polishing them anyway.

        I'm just saying what I've read many times in real estate forums. A greater percentage of landlords rip out the carpet and the tenants can get their own hall runners and rugs if they want them. Then nicotine can be washed off, damaged walls quickly spackled and repainted, and stink is gone. Wooden floors get a light polish if needed between tenants, and sanded and lacquered every several tenants.

        Like I said, they might 'win' the germaphobe or asthmatic lottery with hard floors - a clean freak - that carpet would otherwise drive away but attract the apprentice zoo keepers.

        Sure, if it's perfectly fine and fresh - leave it. It can always be ripped out later when it stinks or gets damaged. But if it's already 20+ years old, it's a sensible consideration. Plus removing it would bring more rent for a very small outlay. Later on, it's far easier to fix a hard floor than remove dog mess, wine, blood, BRAINS!, etc. from carpet. And if it happens to be WOOL carpet… you're just begging for it to look and smell like a garbage dump.

        Finally, a landlord that 'masks' stink of previous tenants for future ones - doesn't deserve good tenants - and their attitude in general to their own property will often bring just that result.

  • [Deactivated] on 21/04/2019 - 22:23
    +1

    You can download a standard contract just search residential tennacy agreement your_state.

    If you are going to go changing it, adding extra things you should seek legal advice as the laws are pretty strict and you don't want to do something illegal.

  • whooah1979 on 21/04/2019 - 23:37
    +7

    Op, perhaps an IP isn't for you. Look into shares as they don't bark or drool.

  • Bargainaholic on 22/04/2019 - 00:17

    Special conditions can be added to lease agreement to cater for your additional requests.
    Most of what you mentioned forms part of the agreement

  • horice on 22/04/2019 - 00:36
    +4

    Renting a home does not seem the business you should be into

  • Quantumcat on 22/04/2019 - 07:34
    +5

    This is a silly one:

    b. The tenant(s) is not allowed to make any changes to the land. This includes not planting trees nor plants on the property.

    You're saying the tenant can't mow the lawn or do any weeding. Hope you're happy to pay a regular gardener.

    • savage bargain on 22/04/2019 - 09:56
      +1

      There would be nothing to garden - tenants would turn off the sprinklers to save on water, killing the garden.

  • Tee Rex Arms on 22/04/2019 - 08:53
    +5

    Are they allowed to breathe without your permission?

    • whooah1979 on 22/04/2019 - 09:12
      +3

      Consent is required.

  • ozbargainer888 on 22/04/2019 - 11:31

    It sounds like maybe this isn’t something you should be getting into. That many restrictions where someone will live is too extreme I think. People have kids, pets, plants, vehicles, and so forth and I’d you’re in the business of being a landlord and don’t understand that this comes with the territory then choose something more suitable.

  • HeWhoKnows on 22/04/2019 - 12:10

    You can add what you like to a tenancy agreement as long as it does not contradict the compulsory clauses of the agreement.

    Also best if you add - "without prior written consent from landlord/agent" as in some cases the tenant's request might be quite reasonable and justified.

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