Rental properties can be financially rewarding and satisfying to own, but there is a lot of groundwork to be laid before you can enjoy the benefits. To be a successful landlord who avoids unwanted tension and legal action, it is important to understand the rights of your tenants, as well as your obligations and responsibilities.

1. Start as you mean finish

What’s the overall quality of the rental property? Prior to tenants moving in, you’re responsible for keeping the house and grounds in a good condition. This includes making sure there are no holes in floors, ceilings, walls or windows and all the locks are in working order. After moving in, it becomes the tenant’s responsibility to keep the property clean,  tidy and take care of it as if it was their own.

2. Arranging repairs

If the property is in need or repair, for example there is a leak in the roof or the extractor fan malfunctions, then it is your responsibility as the landlord to arrange for repairs made. This of course excludes damage caused by tenants, such as a suspicious hole in the wall. If you ignore repair requests, tenants can use the Tenancy Tribunal to compel you to have the repairs made, or they can hire a contractor and have the bill sent to you. It’s best to acknowledge repair notices and have arrangements made to fix the issue as soon as possible. Repairs or maintenance should take place between 8am and 7pm and you must give your tenant at least 24 hours notice that a contractor will be visiting the property. The same courtesy principle applies if you have a potential buyer, tenant or registered valuer who wants to look at the property. You must ask for the current tenant's permission to show them the property at a time arranged by both of you.

When maintenance or repairs are underway, the correct health and safety procedures must be followed. Duty of Care falls to you as the property owner, so you will be held responsible in the event of any injuries to either your tenants or contractors while repair work is being carried out on the property.

Read more: 5 qualities of a good landlord

3. Rent collection

It’s your responsibility to collect rent. Once tenants sign the lease you can ask for up to 4 weeks of rent to be held by Tenancy Services. This is known as a security bond, which can be used to cover unpaid rent, damage to the property, or any other tenancy related claim. You can also ask for tenants to pay up to 2 weeks rent in advance, which will protect you if tenants fall behind in rent payments.

4. Property inspection

You’re entitled to inspect the property every 4 weeks to ensure your investment is being taken care of, but you must give tenants at least 48 hours written notice of an inspection. While we recommend making regular inspections so your tenants know you’re serious about taking care of your property, exercise your own judgement. Inspections at every possible opportunity may make good tenants feel like you’re breathing down their neck and discourage them from staying long-term. Not undertaking enough inspections makes it challenging to accurately document regular wear and tear, or stay updated with what’s happening on your property. 

5. It is their home

As a landlord it may also be your responsibility to sort out disturbances or disputes with your tenants and their neighbours, being reasonable when tenants ask to put up fixtures or earthquake proof furniture, and remembering that although you own the property, you do not live there. For the duration of the tenancy it is someone else’s home, so if you don’t give proper notice, threaten or use force to enter the property you’re committing an offence and can be fined up to $1,000.

These are only a handful of the responsibilities of landlords. To stay on top of all your obligations as a landlord requires time, effort and an ongoing understanding of the legal ramifications of getting it wrong.

Worried about letting your home to untrustworthy tenants? Our free guide can help: