How To Serve A Section 21 Notice

August 16th, 2011 by admin No comments »

Serving a Section 21 Notice can be a challenge for any landlord who handles all the formalities associated with letting a property. Notices are problematic because they rely on technicalities that must be closely respected to avoid possession proceedings issues. Still, any landlord can serve a Section 21 Notice to his tenant, provided that he or she knows the conditions that must be meet and the rules that must be followed.

1. Understand What A Section 21 Notice Is

A Section 21 Notice is the form you must to serve whenever you wish your tenant to vacate the property. It comes in two types: section 21 (a), which is used when the tenancy is periodic, and section 21 (b), which is used when the tenancy is for a fixed term. It’s important to note that a Section 21 Notice is ineffectual when it is sent while the fixed term contract is still valid.

2. Serve It In Advance

A Section 21 Notice has to be sent two month in advance to the moment you expect your tenant to vacate the property. This means that the tenant always has a leeway of two months from the moment he or she receives the notice. So for example, if the contract is about to expire but the notice has not yet been sent, then the tenant may be able to continue to occupy the property for two more months even if the tenancy ended in the meantime.

3. Find Out Ways In Which You Can Serve It

It’s often preferable that you serve the Section 21 Notice in person. This eliminates the risk for a delay or other mishap that may cause the notice to fail to reach the recipient. Having a witness when handing the notice is ideal.

It can also be served at the property, through the letter box or mail. The former is a good solution whenever time is pressing. The latter comes with a delay of up to three days and additional risks, i.e. the notice may become lost.

Alternatively, you can serve a Section 21 Notice through fax or e-mail. These however, are the least reliable methods because it’s often impossible say for certain whether they have been indeed read. Fax and e-mail should especially not be used when your relation with the tenant is strained. » Read more: How To Serve A Section 21 Notice

Investment Properties – Should You Allow Pets in Rental Properties?

August 14th, 2011 by admin No comments »

Should you allow tenants to have pets? This question is often a difficult one for investors to answer. On the one hand, they like animals but on the other they are worried about damaged screens, carpets, furniture, cat scratch marks on door frames and odour, all of which can devalue the property. Then there is the potential for the tenant having noisy pets that annoy neighbours. What to do?

Property Investors need to put their business hat on to decide the answer and try to leave the emotion out of the decision. Let us take a look at some facts.

In a recent Northern Territory News article was the headline, “Pet Hates Reducing Landlord’s Income”. An interview was conducted with Investment Club President, Mr Kevin Young. According to Mr Young, Australia has one of the highest pet ownership in the world with 63 percent of the population having one. Half of those who don’t have a pet say they might want to own one soon. He claimed that there has been considerable growth in one-person households over the last three decades and many of those have pets as companions. “It is a reality that pets are becoming an inescapable part of the rental property market in Australia and it is an issue that Australian landlords will have to address in the future if they want to achieve a higher rate of return from their investment property,” Mr Young said.

Mr Young’s observations seem to be backed up by an article in the Courier Mail. Interestingly, the article claimed that up to 15 percent more rent can be achieved for pet rentals and that tenants with pets often want to sign longer leases. The article also noted that property managers say that up to 70 percent of their rental inquiries are from pet owners. Courier Mail, July 10, 2010

The RSPCA NSW also stated that they receive numerous inquiries from concerned pet owners who are finding it very difficult to secure a pet-friendly rental property.

What does a property investor want? » Read more: Investment Properties – Should You Allow Pets in Rental Properties?