Should landlords engage in ‘mutual agreements’ with tenants?
According to a leading real estate executive, mutual agreements can be a win-win for both landlords and tenants.
The president of the Real Estate Institute of Australia, Hayden Groves, acknowledged that renting a home long-term “can be a sensible choice for many Australians”. However, he also noted that it can provide some drawbacks, especially when it comes to making minor modifications to a property.
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Particularly at this time of year as the weather heats up.
With 30 per cent of Australians renting the home they live in, the president said “there are times when a tenant may require modifications such as mild renovations for cooling or heating systems, and it can be difficult to make desired amendments to suit your needs”.
Reminding tenants of their rights, he flagged that “regardless of the state or territory where you live, all Australian tenancy legislation allows for tenants, property managers and property owners to negotiate a ‘mutual agreement’”.
He believes a mutual agreement is “a great way for tenants to make home modifications, and to provide surety to property owners that their investment is protected”.
And it can be a win-win where the landlord is involved, too. Mr Groves lauds mutual agreements as “a sensible option given it improves a property’s value”.
Addressing tenants directly, Mr Groves said it is ideal for people living in a rented property to develop a proposal for amendments, and to know “exactly what you are asking for before contacting your property manager to let them know what you are thinking”.
He advised: “Get their thoughts around what might work for the property owner and importantly, consider what changes are to occur and how the costs of the improvements might be apportioned.”
And where landlords are concerned, Mr Groves said that “communicating effectively and taking a positive and respectful approach goes a long way to achieving a successful negotiation that benefits tenants, property managers and property owners”.
Tenancy Skills Institute CEO Paul Tommasini has backed up Mr Groves’ comments, considering that “when planning underpins the tenants’ efforts in seeking modifications, tenants can work with their property manager to achieve an end result that is a win-win for all parties, including the property owner”.
