Doing your own property management: Will it be fine?!
The RTA have conducted their review of the Act and our tip is there’ll be a number of changes or possibly even a re-write of the residential tenancies act in the new year. The act’s review received plenty of requests for changes, especially from agents like us and the Real Estate Institute of Queensland. With this in mind we have decided to take a look at the penalties under the current act for simple mistakes that self-managed landlords could make.
With over 115 different offences that attract fines we wont keep you here all day! However here are five reasons you could be landed with a hefty fine from RTA:
- So a tenant has left their stuff behind and you want to dump it before the next tenancy begins? Be careful: goods worth over a certain value need to be stored for a period of time or the landlord could cop a fine of $4400.
- Contracting out of the act attracts a large fine of $5500. This can be as simple as putting a special condition in the contract that the tenants are not allowed to wear shoes in the house.
- Not returning a copy of the signed lease when the tenancy commences results in a fine of $2200.
- Some landlords think that once the by laws are displayed in the common area or lift this will suffice however that’s not the case! A nice fine of $2200 will result from not giving the tenant a copy of the by laws when the tenancy commences.
- So you have supplied your tenant with the entry condition report and they never returned it or raised any issues within the allocated 3 days? Job done? Not so. You must send another copy of the report within 14 days or you could be hit with a penalty of $2200.
Obviously these penalties are not going to be a worry if things don’t go wrong and no dispute ever arises with the tenant. However in the event that the relationship with your tenant deteriorates and they begin to look for ways to take a shot at you, be careful you haven’t left yourself wide open with one of these 115 conditions! Experienced property managers know the residential tenancies act inside out. Landlords should look to their property manager as an insurance policy against these unnecessary expenses.