/New Legislation For Investors – What You Need To Know

The key points are:

1. New smoke alarm obligations for landlords.

Landlords need to ensure that smoke alarms installed in the rented property are in working order.
A penalty will apply for landlords who fail to comply.

2. New mandatory set break fees for fixed term agreements

4 weeks rent if less than 25% of the agreement has expired
3 weeks rent if 25% or more but less than 50% of the agreement has expired
2 weeks rent if 50% or more but less than 75% of the agreement has expired
1 week’s rent if 75% or more of the agreement has expired.

3. Rent Increases

Rent increases for periodic (continuing) agreements will be limited to once every 12 months

4. Minimum standards to clarify ‘fit for habitation’

Landlords are currently required to provide the rented property in a reasonable state of cleanliness and ‘fit for habitation’. The changes introduce 7 minimum standards which clarify what ‘fit for habitation’ means.

5. Changes of a ‘minor nature’

Tenants can install fixtures or make alterations, additions or renovations if they have the landlord’s written consent, or if the tenancy agreement permits it. If the tenant’s request for a fixture or alteration, addition or renovation is of a ‘minor nature’ then the landlord must not unreasonably withhold consent. The tenant must pay for the fixture they install or for any alteration, renovation or addition to the property that they make, unless the landlord agrees otherwise.

6. Strengthened information disclosure requirements

A landlord or agent must not make false or misleading statements or knowingly conceal certain material facts from a prospective tenant before they sign an agreement. The list of material facts is available in the Tenant Information Statement that a landlord or agent must give a tenant before entering into a tenancy agreement.

7. Before signing an agreement, a landlord or agent must also tell a tenant of any proposal to sell the property if the landlord has prepared a contract for sale.

8. New information to be disclosed to prospective tenants

The tenants lease now has to have a phone number or email address of the owner included in it.

9. Remedies for tenants for breaches to information disclosure obligations

A tenant is able to end their tenancy agreement by giving at least 14 days’ notice if the landlord or agent fails to comply with any of the information disclosure obligations.

10. New water efficiency measures

All taps and toilets on the property need to be checked at the start of a tenancy so that any leaks are fixed. Taps and toilets must also be checked whenever any other water efficiency measures are installed, repaired or upgraded and any leaks fixed.

 
 
 

/Penelope

As co-founder of Sydney-based property management agency Property Alchemy, it is my goal to ensure our clients (both property investors and tenants) experience property management services well beyond their expectations. From a personal point-of-view, I make it my responsibility to identify the best opportunities from investment to tenancy selection while mitigating and carefully managing risk along the journey. Our end goal is positive financial outcomes for our clients with minimal risk and maximum enjoyment!