Owning a rental property comes with responsibility. From the moment a tenant moves in to the day they leave, there’s a long list of tasks to ensure the property remains safe, legally compliant, and financially viable.
This guide outlines property management essentials: from defects to rental filing, helping landlords and property managers keep things on track.
If you’re at the buying stage and wondering do you need a lawyer to buy a house in Australia, the answer often depends on the complexity of the transaction. Once the property is yours, however, understanding these ongoing management tasks becomes even more essential.
Understanding Property Management Responsibilities
Defining Property Management
Property management involves the ongoing operation, control, and oversight of real estate. It ensures that an investment property not only retains its value but also generates reliable income.
For landlords, it means keeping the property in good condition by scheduling maintenance, repairs, and regular inspections to protect the asset. It also means ensuring legal compliance by staying up to date with tenancy laws, safety standards, and contractual obligations.
Managing tenants and finances is another important aspect, which involves handling leases, rent collection, expenses, and resolving issues to maintain smooth operations. A well-managed property not only keeps tenants happy but also protects the owner’s investment.
Who Can Manage a Property?
You can manage your own property or hire a professional property manager. Many investors choose professional services to save time and reduce risk, especially if they have multiple properties or live interstate.
A property manager can help streamline the process and ensure compliance with legal obligations, taking much of the responsibility off the landlord’s shoulders.
Identifying and Managing Defects
What Are Property Defects?
Defects refer to faults or issues in the property that affect habitability, safety, or functionality. These issues can be structural, such as cracks in walls, cosmetic, such as peeling paint, or service-related, such as plumbing leaks.
Addressing defects promptly helps avoid further damage and supports tenant satisfaction, preventing small issues from becoming larger, more costly problems.
Handling New Build Defects
If the property is newly constructed, it will likely come with a builder’s warranty. During the defect liability period, landlords should conduct regular inspections, note all issues in writing, and submit defect claims before the deadlines.
Failure to report defects on time can result in out-of-pocket repair costs, so it’s crucial to stay on top of these matters.
Conducting Routine Inspections
Purpose of Inspections
Routine inspections allow landlords to check for maintenance issues, assess how tenants are caring for the property, and ensure safety standards are met.
Inspections should be carried out every 3 to 6 months, depending on local legislation, to maintain a proper overview of the property’s condition.
What to Look For
During inspections, landlords should look for signs of water damage, mould or pest infestations, safety hazards such as loose handrails, and general cleanliness and upkeep.
Photos should be taken during inspections and shared with both the tenant and the landlord for record-keeping, ensuring that any issues are properly documented.
Managing Repairs and Maintenance
Urgent vs Non-Urgent Repairs
In Australia, the law differentiates between urgent repairs and non-urgent repairs. Urgent repairs, such as burst pipes or gas leaks, must be addressed immediately to ensure tenant safety and prevent further damage.
Non-urgent repairs, like leaky taps or cracked tiles, can be scheduled and dealt with in a timely manner. Landlords are legally required to respond quickly to urgent repairs, prioritising the safety and comfort of their tenants.
Finding Reliable Tradespeople
It’s important to build a list of trusted professionals, such as electricians, plumbers, pest controllers, and handymen. Using licensed and insured trades reduces liability and ensures that work is done to standard. Reliable tradespeople also help maintain the property’s value and prevent issues from escalating.
Legal Compliance and Safety Standards
Smoke Alarms and Electrical Safety
All rental properties must meet safety requirements, including working smoke alarms on each level, regularly tested and compliant alarms, and safety switches installed on power circuits.
Non-compliance with these safety standards can result in fines or legal action, so it’s essential to ensure that these features are in place and functioning properly.
Pool Fencing and Balcony Regulations
Properties with pools must have compliant fencing and undergo regular inspections. Balconies should be secure, particularly in multi-level dwellings. Ensuring that smoke alarms are installed and tested regularly is also part of meeting safety regulations.
Failing to meet these standards not only impacts insurance claims but also the safety of tenants. Maintaining these safety features properly protects the property’s value and reassures tenants that their wellbeing is a priority.
Managing Tenancy Agreements
Setting Up the Lease
A residential tenancy agreement should include the start and end dates, the weekly rent and bond amount, maintenance responsibilities, and the conditions for ending the lease.
Using a standard form for your state or territory is strongly recommended to ensure that the lease is legally compliant.
Lease Renewals and Rent Reviews
As the lease nears expiry, landlords should review the current market rent, discuss renewal with the tenant, and provide appropriate notice for any rent increase. Keeping rents competitive helps reduce vacancy and ensures continuous income from the property.
Collecting and Lodging Rental Bonds
How Bonds Work
The bond is a security deposit paid by the tenant at the start of the lease. It is held by the state’s tenancy authority and can be used for unpaid rent, damage beyond wear and tear, or cleaning costs at the end of tenancy.
Ensuring the proper management of the bond protects the landlord and ensures that any potential issues are covered.
Bond Lodgement Process
Each state has its own system, but generally, the landlord must lodge the bond within a set period (often 10–14 days), provide a receipt to the tenant, and ensure records are accurately maintained.
Late lodgement can lead to penalties, so landlords should be diligent in following the required procedures.
Recording and Filing Rental Income
Tracking Rent Payments
Using a digital ledger or property management software helps landlords track rent due dates, payment confirmations, and any missed or partial payments. Tenants should receive receipts and statements if requested, ensuring transparency and a clear record of all payments.
Tax Time Preparation
All rental income must be declared in the landlord’s annual tax return. Keeping detailed records of income received, expenses claimed, and property-related documents, such as depreciation schedules, helps with tax preparation.
Using an accountant experienced in property investment helps maximise legal deductions and streamline the process.
End-of-Tenancy Procedures
Notice and Exit Process
When a tenant gives notice or the landlord ends the lease, the landlord should follow the legal notice period, confirm the move-out date in writing, and begin preparations for the final inspection.
It’s important that the process is fair and well-documented to avoid potential disputes.
Final Inspection and Bond Refund
Conduct a thorough inspection against the original condition report. Check cleanliness, damage, and missing items (if furnished).
Once everything is in order, the bond can be refunded or claimed through the relevant authority. It’s crucial to maintain a clear record of the inspection to avoid issues with the bond.
Using Technology in Property Management
Property Management Software
Platforms like PropertyMe, Rentec, or Console help manage rent collection, inspection reports, maintenance requests, and communication with tenants. These tools reduce manual work and keep all records in one place, improving organisation and efficiency.
Online Communication Channels
Tenants can submit maintenance requests, receive reminders and updates, and review lease documents through digital communication. Clear and consistent communication helps build better relationships and reduce disputes between landlords and tenants.
Conclusion
Property management essentials cover everything needed to run a rental property efficiently and legally. Whether you self-manage or use a professional, knowing what’s involved ensures smoother tenancies and better outcomes.
Taking the time to understand each element leads to fewer disputes, stronger returns, and long-term property value.
Strong systems also build tenant trust and encourage longer leases. Regular reviews of expenses and performance help you optimise returns. Ultimately, good property management protects both your income and your investment’s future.
Frequently Asked Questions
Do I need to use a property manager?
No. You can manage your own property. However, professional managers can save time, handle legal compliance, and assist with disputes—especially helpful for remote investors or those with multiple properties.
Can I enter my property at any time?
No. You must give the tenant proper notice before entering the property, even for inspections or repairs. Entry without notice breaches tenancy laws and can result in penalties.
What happens if the tenant damages the property?
If the damage goes beyond normal wear and tear, the cost can be deducted from the bond. Documentation and photos from inspections will support any claims made.