Investing in property in The Hills can be lucrative, but with investment comes responsibilities and potential pitfalls. Yes, you can, in theory, manage your investment property yourself. However, we suggest that employing a competent property manager can be a wise decision, not only for convenience but also for significant cost savings in the long run. A skilled property manager navigates the complex landscape of landlord and tenant legislation, ensures compliance, and maximises your investment’s potential. If you choose to manage your investment property yourself, you will need to ensure you stay up to date with current and proposed legislation to avoid costly penalties.
Navigating the legal landscape
NSW has a comprehensive framework of legislation governing landlord and tenant relationships, and staying current with the latest changes is crucial. A property manager is well-versed in these regulations, protecting you from potential legal issues and costly penalties.
Key pieces of legislation include:
- Residential Tenancies Act 2010: This is the primary legislation governing residential tenancies in NSW, outlining the rights and responsibilities of both landlords and tenants.
- Strata legislation: New strata laws are frequently updated, affecting how strata schemes are managed and potentially affecting landlords within those schemes. A property manager understands these changes and ensures your property complies.
- Fair Trading NSW: This government body provides resources and guidance on tenancy matters, and a property manager will be familiar with their guidelines.
Recent legislative changes to NSW tenancies
Changes implemented already include:
- No fees for background checks: A renter may be required to pay a deposit, bond, rent or registration fee only when looking for or starting a lease. Landlords or property managers may not charge other costs such as for background checks or inspecting a property.
- Rent increases once per year only: The ‘once a year’ rule now applies to all rental agreements, regardless of duration. For fixed-term leases of two years or fewer started before 31 October 2024, different rules apply.
Changes for 2025 include:
- Tenancy end: Landlords will need to provide a reason to end a tenancy and supply supporting documents or information for certain grounds. Landlords will be penalised if the reason given for ending the tenancy is deemed to be not genuine.
- Extended notice periods for fixed-term leases: The notice periods for renters are now 60 days’ notice for leases of up to six months and 90 days’ notice for leases longer than six months.
- Pets: Landlords will have to supply specific reasons to deny a renter’s request to keep a pet. There will be a standard application process; landlords will need to respond within 21 days. If landlords haven’t responded in that time, the request is approved automatically.
- Rent payment options: From 2025, landlords and agents must offer tenants the option of bank transfer or online payment system to pay their rent and they should not charge the tenant additional fees to do so.
Compliance matters
Non-compliance with tenancy laws can result in financial penalties and legal disputes. A property manager ensures you adhere to regulations and don’t make costly mistakes.
Examples of areas where a property manager ensures compliance include:
- Lease agreements: Property managers prepare legally sound lease agreements that protect your interests while complying with tenant rights.
- Rent increases: They understand the rules around rent increases, including the frequency and the correct procedures for notifying tenants.
- Bond handling: Property managers handle bond payments correctly, ensuring they are lodged with the appropriate authority.
- Property maintenance: They arrange for necessary repairs and maintenance, ensuring the property is safe and habitable, which can prevent more significant and expensive issues down the line.
- Privacy: They adhere to privacy regulations, respecting tenants’ rights to quiet enjoyment and providing proper notice before property inspections.
Landlord responsibilities
While you as landlord can visit the NSW Fair Trading website for information on their responsibilities to tenants, you should be aware that legislation changes fairly frequently and you need to stay current with any changes.
Basic landlord responsibilities cover areas such as repairs and maintenance, urgent repairs for issues such as a broken hot water system, what notice needs to be given to a tenant before you can inspect the property, how much notice you need to give a tenant before ending their lease and much more. Your property manager can take the stress out of your investment property by staging on top of compliance.
Effective communication
We know from our experience that great communication with both landlords and tenants is a key attribute of an effective property manager. Not only does regular communication head off potential issues, but also, understanding what both parties need helps property managers to protect your investment, get problems fixed promptly and set the right rent. It’s worth keeping in mind that the ‘right’ rent could be market rent or a sum at the landlord’s discretion. For example, your property manager will know if a good tenant is prepared to leave should the rent be raised too high. It’s often more profitable in the long run to keep the rent lower, the tenant happy and avoid any vacancy period.
Employing a competent property manager in NSW is not just about convenience; it’s a strategic decision that can save you significant money and stress. They navigate the complexities of tenancy law, ensure compliance, minimise vacancies, maximise income, and protect your valuable investment.
Thinking of selling or need selling advice in The Hills?
We have buyers looking for homes in Rouse Hill, Beaumont Hills, Box Hill, Kellyville, North Kellyville and Tallawong. As established real estate agents, we’re here to help. Get in touch today by calling us on 02 8883 0777.
