What a Landlord Needs to Know Free Report
Landlords have over 100 new reforms to note now that the New Residential Tenancies Act is now in effect from January 31, 2011. The most important changes are outlined in a free report available from the Exchange Property website:
What a Landlord Needs to Know.
Exchange Property Sales and Management licensee Ian Comyns says that while many of the reforms are positive, there are some contentious changes.
“In particular, the disclosure of any health risks will be critical for landlords in limiting liability going forward, Ian says.
Here’s a summary of the key changes:
1. Before the tenancy:
You can request a holding fee (up to 1 week’s rent) after approving a tenancy application. This holds the property for the prospective tenant for 7 days. Once you accept the fee you are committed to taking on the tenant, but the fee is forfeited to you if the tenant declines the agreement.
In addition to providing your address and contact details on the tenancy agreement, you must also inform the tenant if:
• A sale contract is in the works
• A financial institution has commenced court action against the property
• A bushfire, flood or violent crime have occurred on the premises within 5
years.
A condition report must be completed before a new agreement is signed. This means that the previous tenant must have vacated, and the premises inspected and repaired before a new tenant moves in.
2. Fees, bonds and payments
The new Act changes certain fees charged to tenants:
• Lease preparation fees can’t be charged
• Only tenants keeping pets can have carpet cleaning fees included in the
tenancy agreement
• If the tenant is responsible to pay water usage the premises must be water efficient. This means that no leaks and all internal cold water taps, shower heads and single mixers are capped at a nine litre per minute maximum flow. Payment of a water bill must be requested within three months of the date on the bill.
The maximum rental bond is equal to four weeks rent, on all properties. Bonds can’t be “topped up” after a rent increase.
Tenants must be offered at least one fee-free payment option for paying rent, like direct transfer.
3. Notices, Arrears and Evictions
Serving notices is easier under the new Act, as notices may be served to the tenant at home or work by fax, hand delivery or mail.
Some notice periods have changed though:
• 90 days to end an agreement after the end of a fixed term,
• 30 days to end an agreement when a fixed term period ends,
• 60 days for a rent increase,
• 14 days prior to opening the property to sales inspections.
Tenants on a periodic agreement can vacate at any time after you issue a termination
notice, without paying rent. You can now reduce the eviction process by serving the tenant’s termination notice
and applying to the Tribunal simultaneously.
Tenants who pay rent on the day of eviction may remain on the property. The Tribunal may make a termination order with no option to pay rent if you can prove the tenant frequently fails to pay rent.
4. Breaking Agreements
The tenant may break the agreement early and without penalty if they are:
• accepted into social or aged care housing,
• bared from the property by an AVO
• not advised that the property was for sale when entering into the agreement.
While these are only some of the changes you face under the new act, they are the biggest. To learn more, download the full What a Landlord Needs to Know Report free from our website.
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