RENTAL PROPERTY LINGO EXPLAINED

Do you have a handle on all the terms that go along with renting a home? Our tenant’s glossary will bring you up to speed.

If you are a first-time renter, or even if you have rented before, there are a lot of words and terms that you may come across but not understand.

The following list of rental property lingo will help you interact confidently with property managers or landlords:

Rental glossary for Australian tenants

Add these to your vocabulary and you’ll be speaking ‘tenant’ in no time:

1. Arrears: Arrears are any unpaid rent that you owe to your landlord. When you sign your lease, it will outline the procedures that will be taken if you fall into arrears. If you find yourself in arrears, talk to your property manager immediately.
2. Bond: When you first move into a property, you are usually expected to pay a lump sum which the landlord or agency will hold onto to cover any possible damage to the property. The amount is usually one month’s rent. If you have not caused any significant damage when you leave the property, the bond will be returned to you.
3. Condition Report: The condition report is a document that outlines the condition of the property when you move in. It will show issues that were already present, so you can’t be held accountable for them. When you first move in, it is wise to check this document and notify your property manager of any issues that may have been missed.
4. End Date: The end date is the official day when your lease is up, your tenancy ends, and you will be required to vacate the premises. It is important that you and your property manager are aware of the date.
5. Inspection: Often called rent inspections. Your property manager will inspect your property on a regular basis to ensure there has been no major damage, check that there are no issues that need taking care of and note that you are in compliance with your rental agreement. The time between visits can vary but is usually three months, meaning you’ll have four inspections a year. You’ll find more information about rental inspections here.
6. Inventory: Your property manager will arrange an inventory of the contents of the property, including fittings and appliances, as a way of reducing disputes when you leave. This list will be longer and more significant if you rent a furnished property.
7. Lessor: The lessor is the owner of your property and, therefore, your landlord, as they are the holders of the lease. This is a term you will mostly come across in the paperwork. In matching lingo, you are technically the ‘lessee’ although tenant is the more commonly used word.
8. Per Calendar Month (PCM): In a per calendar month (PCM) lease agreement, your rent will be broken down into 12 payments a year. This means you pay the same every month, even in shorter months like February.
9. Property Manager: Unless you opt for private rental where you rent directly from the landlord, you will be dealing with a property manager. A property manager is a real estate professional who manages rental properties on behalf of their owners. They are the person who will conduct your inspections and are who you contact with any queries or maintenance issues. The benefit of using a property manager is that they have an in-depth understanding of rental legislation.
10. Quiet Enjoyment: Quiet enjoyment is your legal right to uninterrupted living in your rented space. This means that your landlord or property manager is not allowed to visit unannounced and must treat the property as your space for the duration of your tenancy.
11. Renewal Option: If you want to continue living in the same home after your lease agreement is up, this clause in the agreement allows you to extend your lease.
12. Residential Tenancy Agreement: This legal government document outlines your rights and obligations as a tenant. It can also be referred to as a rental contract.
13. Utilities: Utilities are your essential services, such as electricity, gas and water. Your lease documentation will outline your responsibilities and your lessor’s responsibilities in paying for these services.
14. Wear and Tear: This is the natural wear and damage that will happen to a property over the course of your tenancy. You will not be responsible for repairing this form of damage when you leave.

Now you know these terms, make sure the person you lease a property from does as well.

Many landlords take on the responsibility of leasing a home without really understanding the official terms and requirements. It’s better to work with a professional property manager who is clear, not just on the language of renting but on the rules, regulations and requirements of a harmonious long-term rental relationship.

Have any other questions about renting? Reach out to Professionals Platinum today.