The cost of compliance mistakes in property management

Property management in Australia comes with a laundry list of responsibilities, and compliance is right at the top! From the Residential Tenancies Act to fair housing regulations, staying compliant can feel overwhelming, but it doesn’t have to be a headache.

In this blog, we’ll break down the most common compliance pitfalls, show you how to avoid them, and explain how property management software can make your life a whole lot easier.

Common compliance pitfalls (and how to avoid them)

Some might argue that strict compliance rules make property management more complicated than necessary. But in reality, these regulations exist to protect both tenants and landlords. Ignoring them isn’t just risky – it’s a surefire way to end up with hefty fines or legal troubles.

1. Mishandling bond money

Rental bonds aren’t just a formality – they’re a legal requirement. In Australia, bonds must be lodged with the relevant state authority, such as the Residential Tenancies Bond Authority (RTBA) in Victoria or Rental Bonds Online in New South Wales. Failing to lodge them on time or making incorrect deductions can result in penalties.

How to stay safe:

• Know your state’s bond lodgement rules and timeframes.
• Lodge bonds within the legally required period (e.g. within 10 business days in NSW).
• Use property management software to track bond payments and ensure compliance.

2. Fair housing and discrimination issues

The Australian Human Rights Commission takes fair housing laws seriously. Discriminating against tenants – whether intentional or not – can lead to legal trouble.

How to stay compliant:

• Train your team on anti-discrimination laws.
• Standardise the tenant screening and application process.
• Automate communications to ensure consistency and fairness.

3. Neglecting safety and maintenance standards

Minimum rental standards exist for a reason, and failure to meet them can lead to fines and tribunal disputes. Heating, electrical wiring, smoke alarms – these aren’t just important, they’re legally required. 

How to keep your properties safe:

• Conduct regular inspections and document findings.
• Use property management software to log and track maintenance issues.
• Address repair requests quickly to stay on top of obligations.

4. Rent increases without proper notice

Rent increases are legal – but only if they’re done by the book. In Victoria, for example, landlords can only raise rent every 12 months, and tenants need proper notice.

How to avoid issues:

• Stay updated on rental laws in your state.
• Use legally compliant lease templates.
• Automate rent increase notifications to ensure compliance.

5. Eviction errors

Tenant evictions must follow strict legal procedures. One mistake – like avoiding an invalid notice or skipping a required step – can delay the process and cause legal headaches.

How to handle evictions legally:

• Follow the eviction process as outlined in your state’s Residential Tenancies Act.
• Use legally approved templates for notices.
• Keep detailed records of lease breaches and communications.

6. Poor documentation practices

Missing or incomplete paperwork can make compliance a nightmare. Whether it’s lease agreements, condition reports, or maintenance logs, keeping everything organised is key.

How to stay organised:

• Store lease agreements, entry condition reports, and compliance certificates digitally.
• Automate document generation and signatures.
• Use property management software to keep all records in one place.

How property management software helps with compliance

Staying compliant requires organisation, accuracy and consistency – things that property management software excels at.

It can:

• Send automated reminders for lease renewals, rent increases, and inspections.
• Provide legally compliant templates for rental agreements and notices.
• Keep financial records audit-ready.
• Track rental bonds and maintenance requests to ensure proper handling.

Compliance doesn’t have to be a constant worry. Console Cloud helps property managers stay on top of the legal requirements with automated lease tracking, bond management and maintenance workflows. With built-in compliance features, you can focus on what really matters – growing your business and providing excellent service to tenants and landlords.

Looking for a smarter way to manage compliance? Our software specialists can walk you through how Console Cloud simplifies legal requirements, automates key tasks and keeps you audit-ready. Book a quick chat today (or simply enter your details below).

At the end of the day, compliance isn’t just about avoiding penalties – it’s about protecting your reputation and ensuring a positive experience for both tenants and property owners. Stay organised, follow the rules and let technology do some of the heavy lifting.