June 28, 2011

Advertising Rental Property and Special Terms (QLD)

The Industry traditionally has advertised rental property very generically. A growing concern and issue that is starting to catch the industry out is that special terms are not referenced in the marketing of the rental property. Tenants are starting to query at sign up items such as carpet cleaning, pest control or the charging of water. They are disputing the fact that special terms were not referenced in the marketing therefore should not apply; they may well have a point.

Standard terms 1 to 44 of all tenancy agreements in Queensland are the law and non-negotiable and must form part of every agreement. Special terms however are additional terms that are not standard terms and do not contract outside the Act. Special terms are not generic so to speak; however for some it may appear that way.

The RTRA Act requires that tenants be provided all terms of the agreement prior to being bound. They must also be given a copy of the tenancy agreement (section 58) prior to monies being taken or being bound to the agreement.  There are other disclosure requirements such as rent payment methods are to be disclosed and if there are costs to pay via rent payment methods, tenants must be given a written document prior to the tenancy commencing outlining an estimate of costs that may associated by using that payment method.

It must be said that the PAMD Act (soon to be Property Agents Act) also requires transparency of all agents including property managers and also requires that tenants be treated honestly, fairly and professionally.

Best practice is to include in all marketing of rental property that special terms apply for the property. Actually listing the special terms is more than ideal. The application form is also a perfect place to disclose in writing to the tenant what the rent payment methods are.

 This information is current as at 28th June 2011.

If you are a Platinum Elite Member, Gold Priority Member or a Professional Elite Individual Member of Real Estate Excellence and require further advice this issue (and any other agency matter),  please contact Stacey Holt. If you are not a Member of Real Estate Excellence, please contact your education provider or the RTA – 1300 366 311 for further advice if required.
(c) Real Estate Excellence Academy Provides General Real Estate Industry Best Practice Advice and Services only.

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