ACT When to collect bond and first two weeks?

Discussion in 'Property Management' started by RogerP, 4th Apr, 2021.

Join Australia's most dynamic and respected property investment community
Tags:
  1. RogerP

    RogerP Well-Known Member

    Joined:
    3rd Sep, 2017
    Posts:
    60
    Location:
    ACT
    Just about to sign a new tenant to my place. The place isn't vacant for another 3 weeks but the start date suited both parties which is good.

    When do we collect the bond money and first 2 weeks rent? Is it

    1) before they sign the lease
    2) just after signing the lease
    3) just before they move in

    my problem is number 3 is if they sign the lease and don't pay the bond, what if they wait until a few days before they move in and change their mind. Then I'd have to re-advertise and lose weeks of rent.

    If number 2, am I supposed to actually specify in the lease how many days after lease is signed they're supposed to send the bond? This clause isn't in the normal lease agreement.
     
    RogerP, 4th Apr, 2021
    #1
    Trall likes this.
  2. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    14,015
    Location:
    Brisbane
    When I was self-managing, I would ask for two weeks in advance, have them sign the lease, even if it is dated to start in a few weeks. That way, if they try to back out, you are holding two weeks' rent that covers time to find new tenants.

    I never had to test this. The only time I ever had someone renew on a signed lease I allowed her to leave without penalty as she realised that same day her furniture would not fit. I just refunded her and kept advertising. I'd lost nothing except half a day.

    I'd also ask for the bond, and you have a requirement to lodge it within a timeframe (depends on which state perhaps).
     
    wylie, 4th Apr, 2021
    #2
  3. Coen

    Coen Well-Known Member

    Joined:
    13th Feb, 2021
    Posts:
    71
    Location:
    Qld
    Forward them the lease to sign as soon as you approve them and ask for the payment of 2 weeks rent to hold the property. The lease should have a section stating how much bond is payable (Qld one does anyway) so just let the new tenants know it must be paid before keys can be handed over (at least a few days prior to cover any bank processing delay).
     
    Coen, 4th Apr, 2021
    #3
  4. RogerP

    RogerP Well-Known Member

    Joined:
    3rd Sep, 2017
    Posts:
    60
    Location:
    ACT
    what if they sign the lease, and then they don't provide you the first 2 weeks?

    How long will you wait before you tell them the lease isn't valid? Would you specify in the lease as a condition that the first 2 weeks is payable immediately?
     
    RogerP, 4th Apr, 2021
    #4
  5. Blueskies

    Blueskies Well-Known Member

    Joined:
    24th Aug, 2015
    Posts:
    1,769
    Location:
    Brisbane
    Yes, I have encountered this challenge as well. Gets even harder when they need to apply to Centerlink for a bond loan and rental assistance, which can take a couple of weeks to come through. I think the trick is to get the lease signed but make it clear the money needs to be paid prior to them moving in.
     
    Blueskies, 4th Apr, 2021
    #5
  6. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,248
    Location:
    Sydney or NSW or Australia
    • Get your 2 weeks up front as your security (get the commitment & issue the receipt & lease asap after receiving the money)
    • Send the lease across for execution
    • Have the tenant submit the bond online & provide the receipt
    No bond, no key
     
    Scott No Mates, 4th Apr, 2021
    #6
    jared7825 and wylie like this.
  7. Coen

    Coen Well-Known Member

    Joined:
    13th Feb, 2021
    Posts:
    71
    Location:
    Qld
    You can give them 48 hrs to pay the deposit to hold the property (no need to put that in lease, just via email is fine). You need to send a copy of the lease with this first email so the prospective tenant can be happy with the terms and conditions prior to paying the deposit (plus any other legal requirements for your state. i.e. copy of body Corp rules, etc) If they don't pay, move on to the next applicant.

    If they sign the lease but don't pay the deposit then you can do the same (move on to next applicant) because you haven't signed it yet.
     
    Last edited: 4th Apr, 2021
    Coen, 4th Apr, 2021
    #7
    RogerP likes this.
  8. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    2,718
    Location:
    South East Queensland
    We require deposit to be paid immediately (at least one weeks rent), then the remainder paid asap, definitely before move-in. The lease and sign up documents are sent out immediately as well, and are expected to be returned within a couple of days.

    In my eyes, you need to get something to 'lock' them in ASAP, then the rest of it as soon as possible but not with an excessive amount of urgency.
     
    Tom Rivera, 7th Apr, 2021
    #8