The tenancy agreement , bond & initial inspection
The tenancy agreement
As each property and tenancy situation is unique , we do not use generic tenancy agreements . Instead , all Ray White offices utilise a specific tenancy agreement software system which adapts and changes in real-time to the many movements in legislation and compliance that we continue to see .
The use of this system provides a distinct added layer of protection for our landlords as incorrect agreements , or those that are lacking important clauses , can create major headaches , risks , and financial implications .
Landlords who wish to self-manage their property should be particularly careful in regards to the agreement templates used . We recommend you seek out the professional letting service of a Ray White property manager and take advantage of our comprehensive credit checking systems and secure up-to-date documentation packages .
Fixed-term vs periodic
Landlords should carefully consider their longterm plans for a property , prior to signing a tenancy . This may depend on their desire for more flexibility of tenure ( periodic tenancy ) versus the long-term income security that comes with a fixed-term tenancy . This is particularly important when there is a possibility that the landlord may wish to sell the property in the future , or if it may be needed for the landlord or a family member to live in .
Rent collection & arrears
We understand your investment is a business transaction and loss of income can cause not only financial strain , but also personal stress . Therefore , we have a zero tolerance policy for rent arrears and do not tolerate late or missed payments by our tenants . This policy is carefully explained to all tenants at the start of the tenancy to avoid any misunderstandings that may arise at a later date .
All initial rent payments are due prior to the start of the tenancy , with automatic payments being the most common payment method to ensure the security and timing of each and every future rental payment . Rental payments are reconciled and allocated daily .
In the event that a tenant does miss a payment , then the following steps are taken :
• We will immediately contact the tenant by phone or text to request the funds in arrears be paid right away and a 14-day notice of breach letter is issued
• If payment is not received after contact has been made and a breach notice sent , then an application is made to the Tenancy Tribunal for a mediated hearing . This will enable a monetary court order to be granted against the tenant ( s ) and in some cases , possession of the property will be requested .
At all times our staff are proactive in keeping on top of errant tenants . However , if you wish to find out more about an office ' s specific arrears policy , please contact your property manager directly .
Bond
The Act allows for a maximum of four weeks rent to be collected from the tenant as a bond against the property . A Ray White office has a responsibility to ensure that all bonds received are then lodged with the Ministry of Business , Innovation and Employment ( bond centre ), within the required timeframe .
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