NSW Tenancy Agreement for Granny Flats

Posted on April 9, 2024

Before preparing a tenancy agreement, check you've fulfilled this checklist.

Granny Flat Ready to Rent Checklist

1. Ensure Proper Approvals and Compliance:

• Obtain all necessary development/building approvals and council permits before renting out the granny flat.
• Confirm the granny flat meets all relevant zoning, setback, and safety regulations.

2. Determine the Appropriate Tenancy Agreement:

• If the granny flat is self-contained, use a general tenancy agreement (Form 18a).
• If the tenant shares facilities with the main house, a rooming accommodation agreement (Form R18) may be more suitable.
• Clearly outline the rental terms, tenant responsibilities, and any shared space/utility arrangements.

3. Screen and Select Tenants Carefully:

• Conduct thorough background and reference checks on prospective tenants.
• Choose responsible tenants who will take good care of your property.

4. Set Fair and Competitive Rental Rates:

• Research the local market to price the granny flat competitively.
• Factor in the granny flat's size, amenities, and location.

5. Maintain Open Communication and Prompt Repairs:

• Establish clear processes for maintenance requests and inspections.
• Respond quickly to tenant concerns to keep the relationship positive.

6. Properly Manage Utilities and Shared Spaces:

• Determine how to fairly charge for water, electricity, and gas usage.
• Agree on responsibilities for any shared outdoor areas or facilities.

7. Document Everything and Stay Compliant:

• Keep detailed records of all rental transactions and communications.
• Ensure you meet all legal and tax requirements for rental income.

Next, advertise the property. We are dedicated site for granny flats for rent here www.grannyflatrental.com.au/list-a-property. Make sure your property presents well on the internet by reading how to take property photos to lease your granny flat quickly before sharing your listing.

Found the tenant you like? Next you must prepare a rental agreement (also called a residential tenancy agreement) in New South Wales.

Key Steps to Prepare a Rental Agreement

1. Determine the type of agreement:

• Fixed-term agreement (e.g. 6 or 12 months)
• Periodic agreement (no fixed end date)

2. Include the standard terms required by the Residential Tenancies Act 2010, such as:

• Rent amount and payment frequency
• Bond amount (maximum 4 weeks rent)
• Tenant and landlord responsibilities
• Grounds for termination

3. Negotiate and include any additional terms agreed to by both the landlord and tenant, as long as they don't conflict with the Act.
4. Provide the tenant with a copy of the New Tenant Checklist from NSW Fair Trading.
5. Complete a detailed property condition report within 7 days of the tenancy start, documenting the property's state. Provide the tenant with 2 copies.
6. Lodge the rental bond with NSW Fair Trading within 10 days, and offer the tenant the option to use the Rental Bonds Online system.
7. Ensure the tenant has access to all required information, such as the landlord/agent's contact details and procedures for repairs and inspections.
8. Review the agreement carefully with the tenant before signing to ensure all terms are understood and agreed to.

The key is to follow the standard requirements set out in NSW tenancy laws, while also negotiating any additional terms that work for both the landlord and tenant. Providing the necessary documentation upfront helps set the tenancy up for success.

Links to Help

https://www.tica.com.au/police-checks.php

https://www.tenancydatabase.com.au

NSW Resources

https://www.fairtrading.nsw.gov.au/housing-and-property/renting

https://www.fairtrading.nsw.gov.au/housing-and-property/renting/new-residential-tenancy-laws

https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0009/608382/Tenant-information-statement.pdf

https://www.service.nsw.gov.au/nswgovdirectory/rental-bond-board

Posted by Lisa Founder GFR

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Disclaimer: Any information is of general help & not deemed as legal or financial advice. GrannyFlatRental.com.au Pty Ltd is not held responsible for any compensation from this general help.