Numbers To Know When Renting Your Investment Property

You may be expecting a post about knowing your income and expenses - your financial figures - but we're going to take a different path in this article. 

Just as important as knowing the financial numbers for your investment is knowing the other essentials - the important numbers which dictate how and when you can take certain actions with your investment property. For example, knowing how many days notice you need to provide should you wish to ask your tenants to vacate the property, how many days notice are required to increase the rent in your property, how many routine inspections can be held per year, and more. 

Think of this post as your "cheat sheet" of must-know, non-financial numbers for the success of your property. Let's get started!

Essential Numbers To Know For Your Investment Property

​Notice Periods Before Entry To The Property

• Notice period required to inspect the premises: 7 days notice
• Number of routine inspections which can be held per year: 4 inspections
• Notice period to attend for the purposes of obtaining a property valuation: 7 days notice
• Notice period to attend to complete ordinary repairs or carry out maintenance: 2 days notice
• Notice period to carry out urgent repairs or in an emergency: no notice required

View further information from NSW Fair Trading regarding notice periods for entry to a rental property. 

​Notice Periods To End A Tenancy

• Landlord's notice to the tenant to end a fixed term agreement: 30 days
• Tenant's notice to the landlord to end a fixed term agreement: 14 days
• Landlord's notice to the tenant to end a periodic (non-fixed term) agreement: 90 days
• Minimum number of days a tenant on a periodic (non-fixed term) agreement has to stay in the property after being given 90 days notice to vacate: 0 days. The tenant can leave immediately with no further rent owing once vacant possession is provided.  
• Tenant's notice to the landlord to end a periodic (non-fixed term) agreement: 21 days
• Landlord's notice to tenant to provide vacant possession if the Landlord has entered into a contract to sell the property requiring vacant possession (periodic agreements only): 30 days 

View further information from NSW Fair Trading regarding notice periods and ending a tenancy. 

Break Fees Payable By The Tenant

​A break fee is a penalty a tenant agrees to pay if they move out before the end of a fixed term lease agreement. 

For most fixed term agreements of 3 years or less signed from 23 March 2020 onwards, the following mandatory break fees apply if the tenant vacates before the end of the fixed term: 

• 4 weeks rent if less than 25% of the lease had expired
• 3 weeks rent if 25% or more but less than 50% of the lease had expired
• 2 weeks rent if 50% or more but less than 75% of the lease had expired
• 1 week rent if 75% or more of the lease had expired.

View further information about mandatory break fees from NSW Fair Trading. 

Rent Increases

• Number of days notice required before a rent increase can commence: 60 days

View further information on notice periods for rent increases.

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