For you, owning a rental property is an investment. For your tenants, it is their home. This dynamic can sometimes emotionally charge normal situations, making rational conversation difficult. To help make the process of ending a tenancy easier, we’ve outlined some important factors that landlords should consider.

The type of tenancy agreement is important

What kind of tenancy agreement is in place? The agreement could be periodic, which lasts until the tenant or landlord gives notice, or fixed term where the tenancy lasts until the date specified on the tenancy agreement. Sometimes fixed term tenancies only last for 90 days, after which they become a periodic tenancy. If tenants don’t want this to happen, then they need to let the landlord (or property manager) know in writing before the 90-day period is up.  It is the responsibility of both the landlord and tenant to fully understand the nature of the tenancy agreement in place, as it will outline the conditions for termination.

Read more: New minimum insulation standards for rentals

Giving notice

When tenants decide it’s time to move, they must give the landlord 21 days written notice.  Before the tenants move out, the landlord should make sure that the property is left in a reasonable clean and tidy state and paid rent is up to date. Tenants who do not leave the property in good condition risk losing all, or part of their bond.

Landlords who want to move their tenants on generally need to give tenants 90 days’ written notice, however, this can be shortened depending on certain circumstances.

There are a number of other reasons for ending a tenancy. For example, if tenants are more than 21 days behind in paying rent. However, it is important that landlords follow proper procedure to avoid legal issues. When giving notice a landlord must adhere to the following:

• Notice must be in writing
• Notice must include the address of the property and confirm the end date of the tenancy
• Notice must be signed by the landlord or property manager

Bond return

Once the end of the tenancy has been confirmed the landlord can conduct final inspections of the property. If there are no issues relating to property damage or rent payment, the bond should be returned to the tenants. This is done by sending a bond refund form to Tenancy Services, which must be signed by both the landlord and the tenants after the final inspection.

If tenants are in arrears or caused damage to the property (excludes general wear and tear), landlords can apply to Tenancy Services to have either part or all of the bond paid to them. If one party is unwilling to sign the form or can’t be contacted, fill out as much as you can and send it to Tenancy Services who can chase the offending party on your behalf. If they reply and agree or don’t reply by a certain date the bond may be paid out anyway.

This is why regular inspections, and keeping track of the property and finances are essential. Landlords and property managers will be required to prove the rent is in arrears and by how much. Other questions landlords will be asked: When did the damage occurred, exactly how much damage was caused, and how much it will cost to repair? Landlords will need to consult with a few tradespeople for quotes to ascertain an approximate amount to be deducted from the tenant’s bond.

Did you know: If a bond remains unclaimed for six years, it goes straight into the government’s purse.

Ending a tenancy agreement should be straightforward, but the steps involved also make it quite a lengthy process, especially if there are issues that must be corrected. If you simply don’t have the time or patience to deal with your rentals a property manager is a good way to go. They can advise you on how and when to end a tenancy, and take care of the time-consuming final inspections and paperwork. They can ensure your property is correctly inspected and documented so if there are any issues when ending a tenancy, it will be easy to prove where the fault lies.

For more best practice tips to help you better manage and protect your investment, download our free guide: