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The Lease Document
The most important paperwork regarding your
tenancy is the lease document. Make sure you
obtain the terms of your lease in writing and do
not sign the lease until you are conversant with
the terms and what is expected of you.
These documents are somewhat standard and are
provided to you by the landlord or property
manager which are usually copies endorsed by
their state real estate institute or required
under the terms of any state Act pertaining to
rental agreements. Standard lease documents
contain clauses and terms that cannot be changed
as they are there to protect both parties.
Additional clauses may be added to standard
documents and are subject to your agreement.
You can usually obtain a copy of standard
leases from various office supplies stores,
newsagents and real estate institutes. Most
importantly, whether it is a standard document
or other type of lease agreement, ask questions
and obtain advice to be sure of your
understanding of the lease terms, especially if
clauses are struck out. Note that changes to
standard clauses may not be legal or
enforceable.
It is normal for the landlord to pay for
costs associated with the preparation of the
lease and all costs that you will be expected to
pay should be detailed in the lease.
The lease you sign is a contractual document
to protect both you and the owner and will act
as a reference in the event of any dispute. Make
sure you keep your own copy of the signed lease
document and a copy of any attachments.
In addition to the lease document and any
other documentation you are required by your
state law to receive from the landlord, there is
normally a Property Conditions report that you
will need to review and sign.
Property Condition Report
A copy of the Property Condition Report must
be given to you. This states the condition of
the property noting damage, state of repair and
condition of the physical aspects of the
property including any fittings, furnishings and
appliances - prior to you moving in.
Whether done in conjunction with the landlord
or property manager or given to you for your
imminent return, you will get the chance to
check the report and sign your acceptance of it.
Take your time to review it and agree with the
stated descriptions of condition as it is this
document that is referenced and compared to at
the end of your lease. Discuss conditions you
don't agree with the landlord or property
manager and come to agreement.
You should be provided with a signed copy or
duplicate copy of this report for your safe
keeping.
If there is any damage over and above 'normal
wear and tear' for your tenancy period, you will
be required to pay for the replacement or repair
of such damage, such costs likely to be deducted
from your rental bond. Contact your state
tenancy tribunal or board if you have any
conflict of opinion.
Rates, Water and Other Service Charges
The rates for water and sewerage are normally
paid for by the owner of the property but 'usage
or meter amounts' are normally paid for by the
tenant. Sometimes these costs are bundled into
an overall rental rate inclusive of usage
charges as a 'gross rental', but either way the
treatment of water usage should be spelt out in
the lease document.
It is more common for standalone properties
with separate meters to have the meters read at
the beginning of the tenancy and usage charges
payable by the tenant. In high rise apartments
or premises without separate meters, these are
payable by the landlord.
If water usage is payable, the property
manager or landlord will provide a copy of the
water bill for payment by the due date.
Additional Terms of the Lease
If there is any other matter that is
discussed or agreed verbally between you and the
landlord or property manager with regard to your
tenancy, these should be documented either in
the lease or property condition report. You will
need written evidence to support any claims you
may make in the event of dispute.
Rental Payments
These are specified in the lease and are
usually made on a weekly, fortnightly or monthly
basis, noting that lower rentals are usually
paid on a more frequent basis and higher rentals
usually monthly.
The rental payment amount cannot be changed
during the lease term unless otherwise agreed by
both parties. Upon signing the lease you will
most likely be expected to pay your rent in
advance, and required to continue to pay your
due rent in advance of each payment cycle.
The landlord or property manager will explain
to you the various methods for payment of your
rent, ranging from cash payment at the property
managers office, cheque, direct deposit and
phone banking. Make sure you obtain detailed
receipts (including address of the property,
your name as tenant, name of the party giving
you the receipt, the amount, date paid and the
period for which the rent covers) and
transaction numbers for your records.
Keep a record of all your receipts. If you
are posting a cheque, make sure a receipt is
sent to you or obtained at some time.
Depending on the terms of the lease, charges
may be added to your rental for late payments,
insufficient funds or bounced cheques.
In the event that anyone claims to act as a
collection agent for your landlord or property
manager, be wary and obtain proof of ID or
authority before handing over any payments.
Rental Increases
Owners are entitled to increase the rent,
subject to the terms of the lease. This is not
normally done during the term of a lease (unless
specified how, when and on what basis the
increase will occur) but normally at the end of
the lease period.
If there is a rental increase, it normally
requires a minimum notice period as specified in
the lease and must clearly specify the amount of
the increase and when it is payable from.
In the event that you don't believe the terms
fair and don't accept the new terms, it is best
that you first discuss and negotiate this with
the landlord to understand why or find
agreement. There are reasons that they require a
rental increase and often it ties into the
market rental increase in the area. Conduct your
own research and obtain factual evidence to
support in writing why you don't think the
rental increase is fair.
If you cannot reach resolution with the
landlord, you can either give notice to leave
the premises or challenge the terms via the
Tenancy Tribunal (or similar) in your state.
If you do this you will also be required to
provide evidence to prove why you think the
increase was inappropriate, including evidence
of comparably priced properties and conditions.
It is the business of professional property
managers to know what market rents are in the
area.
Keys
You are entitled to receive at least one set
of keys for all doors, locks, windows,
letterboxes and gates for the property. In the
event that there are more names on the lease, a
separate
copy of keys should be given to each
tenant. You should not be charged for your
initial set of keys, but you are likely to be
charged for any replacements required.
If there are any special alarms, codes,
remotes or door keycards these should be given
to you
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