Congratulations! You’ve built your granny flat, completed the handover inspection, and secured your first tenant. Now comes a critical week that sets the tone for your entire landlord-tenant relationship.
The first week with your new granny flat tenant determines whether you’ll enjoy smooth, professional tenancy management or face ongoing disputes and difficulties. Here’s your complete setup checklist and landlord tips for getting everything right from day one.
Before Move-In Day: Final Preparations
Complete these essential tasks before your tenant collects the keys.
Utilities Transfer to Tenant’s Name
Electricity connection: Contact your electricity retailer to finalise the account for your address. If you’ve installed separate metering, provide the new meter number to establish the tenant’s separate account. Without separate metering, clarify whether utilities are included in rent or billed separately.
Water account: Contact your water retailer to establish a separate water account for the granny flat using the new meter number. Provide tenant details (with their permission) so bills go directly to them.
Gas connection: If your granny flat has gas appliances, arrange gas account setup. Most Melbourne granny flats use electric cooking and heat pump hot water, eliminating gas requirements.
Internet and phone: The tenant arranges their own internet and phone services, but provide NBN connection details if available. Let them know the NBN connection box location inside the granny flat.
Property Condition Documentation
Detailed condition report: Create a comprehensive condition report documenting the granny flat’s state at move-in. Photograph every room, fixture, appliance, and surface. Include wide shots and close-ups of any existing marks, wear, or imperfections.
Video walk-through: Record a video tour noting the condition of all areas. Narrate what you’re showing to create clear audio-visual documentation.
Tenant signature: Have the tenant inspect the property with you and sign the condition report acknowledging accuracy. This protects both parties when they eventually move out.
Keep copies: Retain copies of all condition documentation. Professional property managers handle this automatically, but DIY landlords must create and store these records carefully.
Move-In Day: First Impressions Matter
Make move-in day smooth and professional to establish positive landlord-tenant relationships.
Keys and Access
Provide all keys: Give tenants all keys to the granny flat, including spare keys. Typical requirements include two front door keys, mailbox key, and any window lock keys.
Demonstrate locks: Show tenants how to operate all locks, including any security features or double-locking mechanisms. Ensure they can confidently lock and unlock the property.
Security information: Provide codes for any electronic access systems. Explain external lighting and security provisions.
Access boundaries: Clarify which areas of the main property are accessible to tenants and which are private. Define access paths clearly.
Property Tour and Orientation
Appliance demonstrations: Show tenants how to operate the oven, cooktop, dishwasher, washing machine (if provided), and heating/cooling systems. Provide appliance manuals in a folder they can reference later.
Hot water system: Explain the heat pump hot water system operation and temperature control location. Demonstrate how to reset if needed (though modern systems rarely require intervention).
Heating and cooling: Show tenants how to operate the reverse cycle system efficiently. Explain thermostat settings and recommend energy-efficient temperature ranges (20-22°C heating, 24-26°C cooling).
Safety equipment: Show locations of smoke alarms, demonstrate testing procedures, and explain the requirement to notify you if alarms chirp (indicating battery replacement needs).
Electrical switchboard: Show the switchboard location and demonstrate how to reset safety switches if they trip. Explain which switches control which areas.
Bin and recycling: Explain rubbish and recycling collection days, bin locations, and council requirements for waste management.
Water shut-off: Show the water meter and shut-off valve location for emergencies.
Bond Lodgement and Rental Payments
Handle financial matters professionally from the outset.
Bond Requirements
Bond amount: Victorian law allows bonds up to one month’s rent for properties renting under $350/week, or up to six weeks’ rent for properties over $350/week. Most granny flat rentals require four weeks’ rent as bond.
RTBA lodgement: Lodge the bond with the Residential Tenancies Bond Authority (RTBA) within 10 business days of receipt. Complete the bond lodgement form online at the RTBA website with tenant details and bond amount.
Bond lodgement confirmation: Both landlord and tenant receive confirmation from RTBA once the bond is lodged. Keep this confirmation for your records.
Never keep bonds privately: Victorian law requires bonds to be lodged with RTBA. Keeping bonds in private accounts is illegal and creates significant problems at tenancy end.
First Rent Payment
Rent in advance: Collect rent in advance for the first rental period (typically two weeks). Victorian law limits rent in advance to one month maximum.
Payment method: Establish the preferred rent payment method. Options include direct bank transfer (most common), periodic automatic transfers, or property management company collection.
Payment schedule: Clarify rent due dates (typically fortnightly or monthly). Provide bank account details for transfers and explain receipt procedures.
Rent receipt: Provide a written rent receipt for the first payment. Subsequent receipts may be automated through bank transfers, but the first payment deserves formal acknowledgement.
Welcome Pack and Essential Information
Create a welcome pack that provides tenants with all information they need.
Emergency Contacts
Your contact information: Provide your mobile number and email for urgent matters. Clarify what constitutes an emergency (burst pipes, electrical failures, security issues) versus routine maintenance requests.
Property manager details: If using professional property management, provide their 24/7 emergency contact numbers and office hours contact information.
Essential services: Include contact numbers for:
- Emergency services: 000
- Electricity network faults: Provider’s fault line
- Water corporation emergency: Your water retailer’s emergency number
- Gas emergency: 1800 GAS LEAK (1800 427 532)
- SES (storms, floods): 132 500
Tradesperson contacts: Include contacts for approved electricians, plumbers, and locksmiths for emergencies. Clarify whether tenants should contact you first or call tradespeople directly for urgent repairs.
Property Rules and Expectations
Quiet enjoyment hours: Explain expectations around noise, particularly during evening and early morning hours. Melbourne has noise regulations that apply, but setting clear expectations prevents disputes.
Guests and visitors: Clarify guest policies. Short-term visitors are normal, but long-term guests may violate lease terms requiring additional occupants to be listed.
Smoking policy: State clearly whether smoking is permitted. Most modern granny flat leases prohibit smoking indoors to protect property condition and value.
Pet policies: Confirm pet arrangements if applicable. Victorian law now prevents blanket “no pets” policies, but specific restrictions (size, type, number) can apply.
Garden and outdoor areas: Clarify tenant responsibilities for any outdoor areas attached to the granny flat. Explain whether they maintain gardens or whether this is your responsibility.
Alterations prohibited: Explain that tenants cannot make modifications, install fixtures, paint walls, or make any alterations without written permission.
Maintenance Procedures
Maintenance request process: Explain how to report maintenance issues. Options include email, text message, phone call, or property management portal if using professional management.
Emergency vs routine: Clarify which issues are emergencies (requiring immediate contact) versus routine maintenance (reported during business hours).
Tenant responsibilities: Explain tenant obligations including:
- Light globe replacement (some landlords provide spare globes)
- Smoke alarm battery replacement
- Keeping the property reasonably clean
- Reporting issues promptly to prevent damage escalation
- Not causing damage through misuse
Response timeframes: Set realistic expectations for repair response times. Emergencies should be addressed immediately, urgent repairs within 24-48 hours, routine maintenance within 2 weeks.
Setting Expectations and Boundaries
Clear communication prevents most landlord-tenant disputes.
Communication Boundaries
Professional relationship: Maintain professional boundaries. Being friendly is good, but avoid becoming too personally involved in tenants’ lives. This professionalism makes difficult conversations (like rent arrears) easier to handle.
Response timeframes: Set expectations about how quickly you’ll respond to non-urgent communications. Same-day responses to routine enquiries aren’t always possible, but acknowledgement within 24 hours maintains good relationships.
Preferred communication: Establish preferred communication methods (email for documentation, phone for urgent matters). Written communication creates records protecting both parties.
Privacy and Access
Entry notice requirements: Victorian law requires 24 hours’ written notice for routine property inspections and access (except genuine emergencies). Explain you’ll always provide proper notice.
Inspection schedule: Inform tenants when routine inspections will occur. Quarterly inspections are common, but well-maintained quality granny flats may only require six-monthly checks.
Tenant privacy: Assure tenants their privacy is respected. You won’t enter without notice or hover around the granny flat. They have quiet enjoyment rights.
First Week Follow-Up
Check in during the first week to ensure everything is working well.
Day 3-4 Check-In
Quick contact: Send a brief email or text message asking if everything is working well and if they have any questions about appliances or property features.
Address minor issues: If tenants report any minor issues (how to use something, where to find something), address these quickly to demonstrate responsiveness.
Build rapport: This check-in establishes that you’re an accessible, responsive landlord who values good tenant relationships.
Week 1 Review
Any maintenance issues: Ask if any maintenance issues have emerged. New tenants sometimes discover minor problems (dripping tap, door adjustment needed) that weren’t apparent during inspection.
Utilities confirmation: Verify utilities have been successfully transferred to tenant names without problems.
Settling in: Confirm they’ve settled in comfortably and have everything they need.
Professional Property Management Option
Many granny flat owners use professional property management to handle all these tasks.
Benefits of Professional Management
Expert tenant screening: Professional managers conduct thorough background checks, reducing tenant risk.
Compliance expertise: They ensure all legal requirements (bond lodgement, entry notices, lease terms) are handled correctly.
Maintenance coordination: Managers arrange repairs using qualified tradespeople at competitive rates.
Rent collection: They chase late rent, handle arrears, and maintain payment records.
Reduced stress: You avoid the day-to-day involvement whilst receiving monthly statements and rental income.
Management Fees
Professional management typically costs 7-8% of rental income. For a granny flat renting at $450/week ($23,400 annually), management fees are approximately $1,850/year. Many investors consider this worthwhile for the expertise and stress reduction.
Common First-Week Mistakes to Avoid
Learn from other landlords’ experiences to avoid common errors.
Don’t Skip Documentation
Never skip condition reports: “They seem trustworthy” isn’t protection when they move out and dispute bond deductions for damage. Always create comprehensive condition documentation.
Get everything in writing: Verbal agreements aren’t enforceable. All arrangements, permissions, and communications should be documented in writing.
Don’t Be Too Casual
Maintain professionalism: Being overly friendly or casual can make enforcing lease terms difficult later. Friendly professionalism is the ideal approach.
Don’t accept cash: Always receive rent via traceable methods (bank transfer). Cash creates record-keeping problems and potential tax issues.
Don’t delay bond lodgement: Lodge bonds immediately with RTBA. Delayed lodgement violates Victorian law and creates problems.
Don’t Ignore Small Issues
Address maintenance promptly: Ignoring small maintenance requests damages landlord-tenant relationships and can allow minor issues to become major problems.
Respond to communications: Failing to respond to tenant enquiries creates frustration and potential disputes.
The Bottom Line on First-Week Setup
The first week with your new granny flat tenant establishes patterns that continue throughout the tenancy. Professional setup, clear communication, thorough documentation, and responsive management create positive relationships that result in reliable rent payments, careful property maintenance, and long-term tenancies.
Your granny flat investment generates returns through consistent rental income. Setting up new tenancies correctly protects those returns by preventing disputes, reducing vacancy through tenant retention, and maintaining property condition.
Take time to do everything properly in week one, and you’ll enjoy smooth, profitable tenancy management for years to come.
Contact Innovista Group if you have questions about preparing your granny flat for rental or need recommendations for professional property management services in Melbourne.
