September 28th, 2022
4 ways to make your rental property feel like your home
Tips & How to's
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Congrats on taking the leap into the exciting world of renting! It’s a big step towards independence and creating your own space. Picture this: your own kitchen to whip up midnight snacks, a living room for epic movie nights and a bedroom that’s totally your vibe. Getting your first rental is like unlocking a new level of ‘adulting’ – it’s both thrilling and a little terrifying.
But let’s be real, finding a place to call home right now isn’t exactly a walk in the park. Australia’s rental market has been hotter than a Bondi Beach day, with vacancy rates hitting record lows and rental prices significantly increasing in many cities. Only a quarter of rental properties saw rent spikes each year before the pandemic, with nearly three-quarters of properties experiencing rent increases in the past year.
This means more competition for properties and potentially a bit more stress in your search. Don’t worry though, we’re here to break down the rental jargon and give you the lowdown on navigating this intense market. Let’s dive in!
Body corporate
This group of people manage a building, like an apartment complex. They make rules for common areas and charge fees to residents. This can also be referred to as Strata. Please refer to your state or territory’s Strata laws and legislation for more details.
Bond
Often called a security deposit, a bond is a sum of money you pay upfront to protect the landlord if you damage the property or don’t pay rent. It’s usually around four to six weeks’ worth of rent. If you look after the place and don’t do any major reno work and your rent and invoices are paid, you should get it back when you move out. Of course, personal style touches can be made when you live in the property: think of decor and indoor plants!
For more ideas, check out our blog on four ways to make your rental property feel like your home.
Breach of agreement
This happens when either the tenant or landlord doesn’t follow the terms of the tenancy agreement, such as not paying rent on time or not fixing something that needs repairing. It can lead to legal issues, so it’s best to avoid it.
Cash rate
The cash rate is the interest rate banks charge each other for overnight loans. It might sound boring, but it indirectly affects rental prices. When the cash rate goes up, mortgage rates for landlords often follow, which can impact rental costs.
Deposit
Similar to a bond, a deposit is a sum of money paid upfront. However, unlike a bond, it’s usually applied towards your first or final rent payment or is refundable under specific conditions. Always clarify the terms with your landlord or Property Manager.
Eviction of Termination
This is when a landlord legally removes a tenant from a property. It’s usually a last resort after severe breaches of the tenancy agreement, like not paying rent for a long time or causing significant damage.
Exit inspection
When you move out, there will be a final inspection to assess the condition of the property and determine whether your bond will be returned.
Investment property
An investment property is real estate purchased with the primary intention of generating income through rental payments, appreciation, or both.
Landlord
This is the person or company that owns the property you’re renting. Property Managers are often appointed to act on a landlord’s behalf. Whoever you liaise with, you have the same rights and responsibilities as a tenant.
Maintenance
This refers to repairs and upkeep of the rental property. Generally, the landlord is responsible for maintenance, while tenants are responsible for general tidiness and upkeep, but check your lease agreement. Things like a broken air conditioner or a leaky tap usually fall under maintenance a landlord is responsible for; bathroom, kitchen and flooring cleaning would be a tenant’s responsibility; lawns, gardens or pool maintenance could be either, so be sure to check your lease agreement.
Notice of termination
This formal document informs the landlord or tenant that the tenancy will end on a specific date. It gives everyone a heads-up about moving out.
Primary tenant
The primary tenant is the person who signs the lease and is legally responsible for the tenancy. They are also the landlord or Property Manager’s main contact.
Property Manager
A person or company hired by a landlord to manage a rental property. They deal with tenants, repairs and rent collection.
Residential Tenancy Agreement
This is the legal contract between you (the tenant) and your landlord, outlining the terms of your tenancy. A lease, as it’s also called, is basically the rulebook for your rental property but must comply with your state’s legislation. It covers everything from how much rent you’ll pay to how long you’ll stay and what your rights and responsibilities are. Make sure you read it carefully before signing!
And if you’re unsure what to look out for or want to ask questions, check out our blog on five questions you need to ask before signing a lease.
Rent-friendly
Something that’s affordable or suitable for renters, like a pet-friendly policy or low bond requirements.
Rooming accommodation
Renting a room in a shared house, often with shared amenities.
Routine inspection
Regular checks by the landlord or Property Manager to ensure the property is being looked after.
Short-term stay
Renting a property for a short period, usually less than six months. This is often used for holiday rentals or temporary accommodation.
Sub-letting
You are renting out part of your rental property to someone else without the landlord’s permission. This is usually not allowed, so it’s best to check upfront with your Property Manager or landlord.
Sub-tenant
With the landlord’s permission, a sub-tenant rents a room or part of a property from the primary tenant. It’s like renting a room from a roommate.
Tenant
That’s you! The person renting the property. Can also be called lessor.
Termination of a tenancy
This is the end of the rental agreement, either at the end of the lease term or by giving the required notice. It’s when you move out.
Utilities
You need these services to live on the property, like electricity, gas, water and internet. Aside from water usage, which is typically invoiced by the landlord or Property Manager, you’ll usually set up your own accounts for these.
Vacancy Rate
This is the percentage of empty rental properties in a specific area. A low vacancy rate means there’s a high demand for rentals, which can make finding a place tough.
So, there you have it – a crash course in rental lingo. Renting your first place can be overwhelming, but armed with this glossary, you’re well on your way to navigating the rental world like a pro. Remember, every landlord and property is different, so always read your lease carefully and don’t be afraid to ask questions. Happy renting!
Disclaimer:
While this blog provides general information about renting, it is not a substitute for professional legal or financial advice. Rental laws and regulations vary by state and territory in Australia. Tenants need to conduct their own research and seek advice from relevant authorities or professionals when making decisions about renting.
