Private Lease Agreement SA – Essential Steps for Protecting Yourself as a Landlord

Ensure your investment is secure by following this comprehensive guide on what you need to do before signing a private lease agreement in South Australia.

Before Approving a Tenant

• Conduct Thorough Tenant Screening: Check every potential tenant carefully. Contact their current employer, previous landlord, and personal references. Request proof of identification, income, rental history, and a recent address to build a clear picture of their reliability.

When You’re Ready to Approve a Tenant

• Sign the Residential Tenancy Agreement: Arrange a meeting with the tenant to review and sign the appropriate Residential Tenancy Agreement form. Provide a copy to the tenant within 21 days. This document outlines the rights and responsibilities of both parties and is crucial for a legally sound lease.

• Complete a Property Condition Report: Conduct a detailed property inspection and fill out an inspection sheet. It is best to complete this report together with the tenant to minimize future disagreements. Keep one copy for yourself and provide two copies to the tenant.

• Request and Lodge the Bond: Ask for a bond equivalent to 4 weeks' rent. Upon receipt, issue a receipt to the tenant and promptly lodge the bond using the Residential Bonds Online Service. This bond serves as a safeguard against potential damages, missed rent, or breaches of the lease.

During the Tenancy

• Conduct Routine Inspections: Perform regular property inspections—ideally, no more than once a month, with up to 4 inspections per year recommended. Always provide the tenant with written notice between 7 and 14 days prior to each inspection to ensure you both are prepared.

• Maintain Comprehensive Documentation: Keep detailed records of all communication, inspections, repairs, and any issues that arise. Retain copies of letters, receipts, photographs, and other pertinent documents as they may be required for resolving future disputes.

Additional Recommendations

• Tenant Background Checks: We strongly recommend completing thorough tenancy screening, including checks against the National Tenancy Database and TICA blacklist. Additionally, consider reviewing records from the ACCR criminal court attendance database and ordering full police background checks through licensed providers.

• Obtain Landlord Insurance: Protect your property and financial interests by securing comprehensive landlord insurance. This coverage should protect you against theft, malicious damage, and loss of rent if the tenant defaults. Compare various providers such as Canstar and RAC to ensure you get the best coverage at a competitive rate.

• Stay Informed: For an overview of landlord and tenant rights, responsibilities, and helpful forms and fact sheets, review comprehensive resources provided by trusted industry bodies. Bookmark these resources for future reference to keep up-to-date with any changes in legislation or best practices.

By following these essential steps, you can confidently manage your private lease agreement in South Australia. Taking the time to thoroughly screen tenants, prepare detailed documentation, and protect your interests with the right insurance will ensure a smoother, more secure tenancy.