What is a tenancy agreement? Well it is just another agreement between two parties where rights and responsibilities of each party is clearly defined. It is a legally binding document that must be read clearly and understood by both parties before they each sign it. Once the landlord and tenants agree to the terms within they must abide by it or they are held responsible for breaching it. A tenancy agreement comes under the umbrella of the Residential Tenancies Authority, and was put into force to prevent disputes over misunderstandings and to protect both landlord and tenant. This makes for a more harmonious relationship between them.
When someone spends a substantial amount of money on an investment for future financial security, they naturally want it to be successful and make sure it is protected. This is true in the matter of investment rental homes as this type of real estate in Campbelltown has been bought at a high price. If a landlord was not careful and let anyone rent his home, his investment could go into a downhill slide costing him money instead of being financially rewarding. Having a tenancy agreement in place affords the landlord a measure of protection for his investment and gives some peace of mind.
A tenancy agreement also protects the tenant from being lumbered unfairly by hidden charges out of the blue, such as any extra charges such as water usage and garden maintenance if used, as they must be clearly specified in the agreement and tenants must be made aware of them before they sign it. If the landlord has engaged property management Sydney to care for his investment, then they must ensure this is done on the landlord’s behalf. With a tenancy agreement in place each party is aware of their responsibilities to the other, as well as their rights, and thus no unclear issues to cause disputes.
Tenancy agreements are really just another form of contract between people, in the same way people agree to hire purchase terms or bank terms when buying homes. They are not difficult to understand and are meant to make sure all are treated fairly and to ensure the tenancy is happy and trouble free for both parties. The Rental Bond Authority was created for much the same reason, so that if the landlord’s investment has suffered damage or loss through unpaid rent he can recover some of it through the bond. If on the other hand, the tenants have done the right thing and cared for the property well, they will have the bond returned to them after the premises have been inspected.
