While the rental market in South Australia is constantly changing, it’s essential for Landlords and Property Managers to stay informed and take proactive steps. With the recent introduction of new tenancy laws and more changes to come related to lease renewal notice periods, maintaining clear and effective communication is crucial. To ensure a compliant and hassle-free tenancy experience, Landlords must provide their Property Managers clear ‘Instructions for Lease Renewals’.
Understanding the current landscape.
The Residential Tenancies Act in South Australia underwent some major changes in March 2024, and one of the most significant changes was the ban on rent bidding. This change prohibits landlords or agents from soliciting offers exceeding the advertised rental price. This practice was previously used to gauge tenant interest and potentially inflate rent.
Additionally, there will be increased notice periods for lease renewals and potentially rent increases in the future. While the specific details and timelines are yet to be confirmed, it is highly recommended that landlords anticipate these changes and be prepared to act accordingly. This is where your Property Manager’s knowledge can be vital.
Why ‘Instructions for Lease Renewals’ are crucial.
To ensure smooth lease renewals, it’s crucial to provide clear instructions to your Property Manager. This can help for several reasons:
- Early decision-making: By clearly outlining your intentions for the upcoming year, your Property Manager can initiate the lease renewal process early, ensuring compliance with the current and the new proposed notice periods. This proactive approach minimises the risk of late communication and potential disputes with tenants.
- Alignment with legal requirements: Clear instructions ensure that your Property Manager adheres to all relevant legislation, including current and future stipulations regarding lease renewal notices. This helps safeguard your rights and interests as a landlord while protecting tenants from unexpected changes or non-compliance issues.
- Streamlined ccommunication: Comprehensive instructions help establish a clear communication channel between you, the Property Manager and the tenant. This transparency fosters understanding and reduces the likelihood of confusion or miscommunication regarding lease renewals and rent adjustments.
- Informed decisions: When your Property Manager receives your clear instructions, they can provide you with informed recommendations and guidance tailored to your specific situation. This allows you to make educated decisions regarding your rental property, taking into account the current market conditions, your investment goals and the potential impact on your tenant.
What should you include in your instructions?
To effectively communicate your intentions, your ‘Instructions for Lease Renewals’ should ideally address the following:
- Your preferred lease term: Specify the desired length of the renewed lease agreement (e.g., 6 months, 12 months, etc.).
- Desired rental price: If you intend to adjust the rent, clearly state the new proposed rent amount. Justifying your decision based on market research or property improvements can be beneficial.
- Notice period preference: Once the proposed new notice periods for lease renewals become official, inform your property manager of your preferred timeframe for notifying the tenant about the upcoming lease renewal and potential rent adjustment.
- Special requests: Include any additional terms or conditions you wish to incorporate into the renewed lease agreement (e.g., pet allowances, minor property upgrades).
Partnering with McGrath Real Estate’s Property Management team.
By adopting a proactive approach and providing clear instructions, you can ensure compliance with current and future legislation, maintain a positive relationship with your tenant and make informed decisions regarding your rental property. Our dedicated and professional Property Management team will discuss your individual situation and provide expert guidance on maximising the success of your rental investment.
At McGrath Real Estate, we’re committed to keeping you informed about the latest legislative changes and assisting you in navigating the evolving rental landscape. We understand the importance of clear instructions and are here to guide you through the process of creating comprehensive ‘Instructions for Lease Renewals’ tailored to your specific needs and investment goals.
To learn more, phone our office on 8350 4200, or drop into 42 Brighton Road, Glenelg.