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DOCUMENTATION – WHAT DOCUMENTS ARE NECESSARY TO START A TENANCY?

DOCUMENTATION – WHAT DOCUMENTS ARE NECESSARY TO START A TENANCY?

by | Nov 20, 2020 | Financial, Legislation, Management Systems, Tenant

Hope for the best prepare for the worst. Proper documentation is not only required by legislation but is good business sense. Setting up strong foundations with thorough documentation means you can relax more easily. 

The tenancy agreement

There are two types of tenancies – fixed term and periodic.

Fixed term

Set for an agreed period, the rent is fixed and the tenant cannot be evicted. If the tenant stays on, the lease automatically becomes ‘periodic’ unless both parties agree to renew and enter into another fixed term agreement.

Periodic

On completion of the fixed term, if the tenant is remaining, the tenancy automatically moves to a periodic, or month-by-month, agreement. The rules and obligations of the original agreement remain the same with different rules for ending the tenancy and increasing the rent.

Rent increases

If rent increases have been agreed to during the period of the fixed term it needs to be stipulate in the lease agreement. This is particularly useful in leases that are longer than twelve months.

Additional terms

You can include other terms that have been agreed between you and the tenant, but they must not contravene the standard terms of the agreement or any state or federal law.

There are also some terms that you are prohibited from adding to the agreement, including:

▪ Insisting on having the carpets professionally cleaned. An exception is if you have agreed to allow the tenant to have a pet.

▪ Insisting the tenant take out any form of insurance.

▪ Exempting the landlord, or his agent, from legal liability.

▪ Penalties for any breaches of the lease.

▪ Performance-based rebates on rent.

▪ Insisting the tenant use a particular tradesman, for example, for pool and garden maintenance.

You can also elaborate on and clarify important issues that you feel may be inadequately covered in the tenancy agreement. Even though, in the event of a tribunal hearing, you may not necessarily win, it does give the tenant pause before choosing to challenge it.

Additional terms may include:

Dishonoured cheques

The tenant acknowledges and agrees to pay all relevant bank fees in the event of a rent payment being dishonoured for any reason.

Repairs

The tenant acknowledges and agrees that requests for all non- urgent repairs are to be submitted in writing.

The tenant acknowledges that repairs will be carried out between the hours of 7am and 5pm Monday to Friday.

The tenant acknowledges that in the event the tenant has agreed to an appointment with a tradesperson for the repair of an appliance, fixture or fitting, the tenant will pay the call-out fee in the following circumstances:

▪ The tradesperson finds no fault in the appliance, fixture or fitting.

▪ The tenant has not operated the appliance, fixture or fitting in the correct

▪ The tradesperson has not been able to gain access to the premises because of the tenant’s failure to attend at the appointed time.

Mail

The tenant acknowledges and agrees that any mail delivered to the rental premises, not addressed to them, will be forwarded to the landlord or managing agent without delay.

Insurance

The tenant is aware that the landlord’s insurance on the rented premises does not cover the tenant’s possessions and it is recommended that personal contents insurance be arranged.

Premises

The tenant agrees not to place any pot plants on any carpeted areas in the premises.

The tenant acknowledges and agrees not to attach or place any adhesive, hooks, nails or other fixtures to any of the surfaces in the premises without prior written consent of the landlord.

It is a breach of the lease conditions for a tenant to change or alter the locks on the premises without consent from the managing agent. In the event that consent is given, a copy of the keys must be given to the landlord or his agent within forty-eight hours.

The tenant agrees to do no decorating or painting without written permission from the landlord or managing agent.

The tenant acknowledges and agrees that smoking is not permitted by any persons within the premises.

Garden and pool

The tenant agrees to maintain the lawns and garden to at least the standard they were in at the beginning of the tenancy.

The tenant agrees that even if the landlord is responsible for the regular servicing of the garden, it is the tenant’s responsibility to maintain the day-to-day care of the garden.

Where the property includes a pool, the tenant agrees to purchase all the necessary pool chemicals and testing equipment in order to keep the pool clean and fit to swim in.

The tenant agrees that, even if the landlord is responsible for the regular servicing of the pool, it is the tenant’s responsibility to maintain any day-to-day care, such as removing leaves.

Contact details

The tenant agrees to notify the landlord or his agent of any changes in work and mobile contact numbers within seven days.

Pets

No pets are allowed anywhere within the property unless otherwise agreed in writing by the landlord.

In the event that permission is given to allow a pet on the property, the tenant agrees to have the carpets professionally steam cleaned on vacating.

Keys

The tenant acknowledges that in the event they have lost or misplaced keys, the tenant shall replace them at his own cost.

If the tenant needs to borrow the duplicate key from the landlord or his agent, a deposit of $100 is required and will be reimbursed on its return.

In the event the tenant obtains permission to change locks, a copy of the keys is to be handed to the landlord or his agent as soon as practicable.

By-laws

The tenant agrees to comply with the by-laws and with any notice served in accordance with the by-laws.

The tenant guide

This is an essential document that needs to be given to the tenants so that they are aware of their rights and responsibilities.

Condition report

The condition report records the condition of the property at the commencement of the tenancy and is mandatory. When the tenant vacates, you will be referring back to the condition report to identify the condition of the property at the commencement of the tenancy.

If there are any disputes, this is the main evidence the tribunal will consider. Without it, you have no case.

The tenant has 7 days to agree with the report or make changes. The tenant then returns a signed copy to the landlord or agent. For more accuracy we include full resolution photos, typically over 100, as part of the condition report.

By-laws

If your property is part of a Strata Title you will need to give the tenant a copy of the rules or by-laws pertaining to the strata scheme and these need to be given to the tenant prior to signing the agreement.

The by-laws set out the rules that owners and tenants need   to follow when living in a Strata Title building. These rules cover use of common property, garbage disposal, pool use and parking, among other things.

Include a special condition in the lease stating that the tenant has been given the by-laws and that they will abide by the rules as set out.

Keys

You will need a complete set of keys for yourself, one for the agent (if you are using one) and one for every tenant listed on the tenancy agreement.   Create a photocopy of the complete set of keys you are handing to the tenant and have them sign that they have received the keys.

Tenant signing

Meeting with the tenant prior to moving in is particularly important.

At this meeting, you will go through the tenancy agreement   in some detail, making sure the tenant understands his responsibilities. You also have this time to address issues such as arrears, preferred communication, cleaning, repairs, property quirks and any other matters you feel are important.

This is an essential part of ensuring that the tenancy starts on the right foot by discussing with the tenant what your expectations are and what he should expect from you while living in your property.

Allow at least half an hour to forty-five minutes to go over the documents.

A typical agenda, would be:

Initial welcome

The lease

Go through the lease thoroughly with the tenant; give him time to read it carefully.

Pets

Make sure they are aware of your position regarding pets.

Pool and garden

Confirm the arrangements and expectations for the pool and garden.

Smoke alarms

Discuss the tenant’s responsibility to advise of any issues and not to tamper with the smoke alarm.

Arrears

Explain why it’s important to be on time with payments, what your policy is and the processes to be employed if they are late.

Repairs and maintenance

Make sure the tenant understands what an urgent repair is and what to do.

Routine inspections

Explain the process for routine inspections and how they can help you keep the property looking its best and properly maintained.

Condition report

Explain what they need to do next and how and when to return it.

Agreed repairs

Update the tenant on any repairs that need to be carried out. Discuss a timeframe and access to the property.

Keys

If handing over keys at this time have tenant sign for them.

Rental bond

Explain the rental bond procedure.

Rent in advance

Explain how rent is to be paid, how much and when. Make sure they understand the process of always paying in advance and on time. Discuss arranging a direct debit.

Hours of business

Discuss your preferred hours of business and what would be considered inappropriate times to contact you.

By the end of the meeting, you should be comfortable that the tenant is fully aware of the responsibilities and how to get in contact with you in the event of a problem.

About Us

George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.

George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.

As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.

George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income.

If you’re looking for a property manager who thinks like a landlord and whose business is built on tested processes, contact us by clicking HERE.

Copyright © 2022, www.propertyquarters.com.au

TENANT APPLICATIONS – IS THIS THE ONE?

TENANT APPLICATIONS – IS THIS THE ONE?

by | Nov 19, 2020 | Financial, Legislation, Management Systems, Tenant

The tenant application is carefully designed to obtain all the information we need to make sure the tenant fits our requirements. But anyone can look good on paper, right?

So, how do we know this is the one?

First, we need to be sure that the tenant can afford to pay the rent without undue strain.

As a good rule of thumb, rent should be around a third of the (combined) gross income of the applicant(s).

Verify with the tenant’s employer that the pay slips provided with the application are accurate and current. Also confirm his position, employment period, work attitude and ethics. Make sure the work situation is stable and not under some form of probationary period or short-term contract.

If he has been working with the current employer for less than two years, you need to establish that he doesn’t have a history of instability. Check with his previous employer to confirm written details and possible problems.

Do the same thing with past rentals. Call his current landlord or agent to confirm the following details:

  • The current rent
  • How long he has lived there
  • Payment history
  • Late payments – how many and how late they were
  • Any issues and, if so, how they were handled
  • How the property was presented at the routine inspections
  • Whether there were any complaints from neighbours
  • Whether they would lease a property to this tenant again

 

At times it will be difficult to get in touch with employers and landlords/agents (current and past), but you must persist. Without having these references confirmed, you can’t take the risk with the tenant. Let the applicant know you are having difficulties reaching these people and that the tenancy application is dependent on contact being made.

Check that there are no obvious issues that may prevent the tenant from being punctual with the rent, or else the tenant’s financial problems will quickly become your problems.

Instability in a tenant will reflect in late payments and an early exit. Short-term tenancies will mean the cost of another marketing campaign and a possible vacancy that will cost money.

If there is any information on the application that conflicts with your investigation, give the tenant the opportunity to explain until you are completely satisfied, one way or another.

Tenant databases are a good idea to make sure you haven’t missed anything major. They are designed to keep records of tenants who have breached the terms of a lease and are collated by privately owned companies that are commercially operated.

The service is reasonably inexpensive and useful as a final check in your screening process.

Once you have approved the tenant you can accept a holding deposit from the tenant to secure the property while the documentation is prepared.

In New South Wales, taking a deposit is confirmation that the tenant has been accepted and is legally binding, you cannot change your mind and accept another tenant.

Finally, don’t be tempted to accept a tenant who doesn’t meet the standards. This rarely ends well. The damage caused by the wrong tenant, both emotionally and financially, can be awfully expensive.

About Us

George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.

George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.

As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.

George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income.

 

If you’re looking for a property manager who thinks like a landlord and whose business is built on tested processes, contact us by clicking HERE.

Copyright © 2022, www.propertyquarters.com.au

LANDLORD INSURANCE – MANAGE YOUR RISK

LANDLORD INSURANCE – MANAGE YOUR RISK

by | Mar 2, 2020 | Financial, Landlord mindset, Legislation, Management Systems, Planning

Landlord insurance is your investment property safety net and should be considered a ‘must have’.

It will protect you, your family and your property from potential financial difficulties, thereby lowering your investment risk.

Nobody knows what’s around the corner. Situations change and good tenants can also change under specific circumstances. You don’t want the events in your tenants’ lives to consequently have an adverse impact on yours.

Looking for the appropriate insurance cover can be confusing and time-consuming. Take your time deciding as above all you don’t want to find out you are not covered when you need it most.

The following is a guide to the different types of cover and what they entail.

Building insurance covers:

  • Replacement cost of the building;
  • Demolition and removal of debris;
  • Locks and keys; and
  • New structures to comply with all statutory requirements.

If you own an apartment, building insurance is paid through your quarterly fees. Wallpaper and paint may not be included though and should therefor be included in your contents cover.  Other items that can be added separately are things such as air-conditioning, lighting and flooring.

Contents insurance covers:

  • Carpet and other flooring
  • Light fittings
  • Window finishes
  • Manchester and linen (if supplied)
  • Any furniture itemised in the tenancy agreement
  • Kitchenware cabinets and appliances
  • Bathroom vanity, cabinetry and shower screens
  • Tap ware
  • Tiling, paint and wallpaper
  • Household goods such as gardening equipment
  • Washing machines and dryers
  • Potted plants
  • Portable pools, spas and equipment

In an apartment, make sure you know which items are not covered by the strata building insurance as you may want to include them in your own insurance. In the event of fire elsewhere in the  building, your unit may be affected by smoke and water damage consequently needing new paint and carpet, or at the very least cleaning as a result.

Events

There is a wide variety of events that can be covered, including:

  • Accidental loss or damage
  • Malicious damage
  • Theft
  • Fire or explosion
  • Lightning
  • Earthquake
  • Riot or civil commotion
  • Water damage – leaks, rain, floods and tsunamis
  • Oil heater leakage
  • Accidental glass breakage
  • Storm or rainwater
  • Electric motor burn out
  • Impact from aircraft, trains, automobiles, space debris, satellites, falling trees or branches, TV antennae, satellite dishes or radio masts

Keep your property safe from unnecessary damage by reading our previous blog: Winter is Coming- A Rental Property Checklist.

Check policy exclusions carefully. For example, some policies do not cover:

  • Accidental damage caused by the tenants
  • Theft by the tenant
  • Damage by the tenant’s pets
  • Tsunamis or other actions by the sea or rivers

Loss of rent

This covers you for loss of rent in the event that the property is not habitable and cannot be leased due to any of the events listed above.

It also covers any rent default by the tenant. However, there are usually conditions attached to a rent default claim, so check the conditions carefully.

When choosing a good tenant there are a few things to consider in order to maximise your financial return. See our blog: 3 Keys to Choosing the Right Tenant.

Public liability

This relates to your legal liability as the owner. It is in regards to an event at your investment property which results in death or injury to other people or damage to other people’s property in or at your investment property.

Consider a minimum public liability cover of no less than twenty million dollars.

No matter what your appetite for risk is, having the right Landlord Insurance goes a long way to creating peace of mind.

About Us

George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.

George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.

As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.

George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income. 

If you’re looking for a property manager who thinks like a landlord and whose business is built on tested processes, contact us by clicking HERE.

Copyright © 2022, www.propertyquarters.com.au

RENTING IN AUSTRALIA: ONE COUNTRY, EIGHT SETS OF RULES

RENTING IN AUSTRALIA: ONE COUNTRY, EIGHT SETS OF RULES

by | May 2, 2019 | Legislation, Management Systems, Tenant

‘The Lucky Country’ for renters depends on which state/territory you live in.

Australia, the lucky country. Yet, as a landlord or tenant, the luck can depend on where you live.

Each state and territory in Australia has its own tenancy legislation. That’s eight sets of rules for tenants and landlords to live by. There may be some similarities but each one is distinct. So if you own property in different states or you’re a tenant that needs to move interstate for work, you need to be well versed in the tenancy legislation of each state.

So what gives?

On January 1 1901, Federation day, The Commonwealth of Australia was formed. That day a new constitution created a Federal Government with powers and rules and thus a new nation was born, the Australia we know and love.

Even though we have a federal government, each state retains the power to have its own constitution and its own legislature, so in terms of residential tenancies that means eight sets of legislation.

So what are some of the differences?

Stamp Duty

It’s understandable that each state has different financial requirements and expenses. So how it collects taxes, such as stamp duty and land tax will vary, and it does. Using the March 2016 figures from Australian Bureau of Statistics, the mean value of dwellings in Australia is $613,900. Buying a residential investment property at this price, the stamp duty ranges from $19,155.00 if you bought a property in the ACT to $31,904.00 in VIC (This is based on buying an established property as an investment.  ACT=$19,155.00, NSW=$23,115.50, NT=$30,388.05, QLD=$20,650.50, SA=$27,930.00, TAS=$23,088.25, VIC=$31,904.00, WA=$23,175.25).

Cooling off period

Two states in Australia do not have a cooling off period requirement when you buy a property, the others allow the buyer between 2 and 5 days to cool off with a maximum penalty of 0.25% of the sale price, except the Northern Territory where there is no penalty at all.

Utilities

In four states there is no requirement to have telephone, television or internet cabling installed (however if any of these services are already installed, it is the landlord’s responsibility to make sure they remain in working condition). In the ACT the landlord must provide a telephone line and in SA the landlord needs to provide the installation of all three services. In Tasmania and the Northern Territory there is no mention of any requirements.

Tenant Holding Deposits

Some states have elaborate conditions on the amount, length of time and penalty when a tenant pays a holding deposit for a rental property. Whilst in the ACT a holding fee cannot be accepted, in Victoria, the holding deposit must be returned regardless of the outcome and in the NT there are no requirements and at all.

Maximum Rent in Advance

The rules in each state vary from two weeks to one calendar month. In Victoria it also depends on the amount of rent being paid and whether it’s weekly or not.

Tenant’s notice to vacate – (not fixed term)

14 days (NT, QLD, TAS), 21 days (ACT, NSW, SA, WA) and 28 days (VIC).

Landlord ending a periodic lease – (not fixed term)

If a landlord wants possession of their property back, other than for a breach of the lease, the amount of notice required to issue to the tenant ranges from TAS – 28 days, NT – 42 days, ACT & WA – 8 weeks, Vic – 60 days, QLD – 2 months, NSW & SA – 90 days.

Arrears

In Tasmania and Western Australia, a landlord can issue a ‘notice to vacate’ giving the tenant 14 days to vacate the property when a tenant is 24 hours late in paying the rent. And if the tenant in Western Australia is continuously late the ‘notice to vacate’ can be reduced to 7 days. In other states and territories, a tenant needs to be either 7 or 14 days in arrears before a ‘notice to vacate’ can be issued. If a tenant fails to pay the rent up to date by the time the notice expires, the landlord can apply to the tribunal/court to evict the tenant.

So if you’re a tenant in genuine trouble you could be facing eviction in as little as 8 days. On the other side of the fence as a landlord you could be out of pocket a minimum of 4 weeks rent if your tenant has decided to stop paying rent (and usually much longer given the time needed for notices to be served). It all depends on which state the property is in.

Access to a tenanted property

In an emergency, if you own a property in Victoria, you must give the tenant 24 hours’ prior notice before you can enter the property without the tenant’s consent. All other states, in an emergency, allow the landlord to enter the premises without consent and with no prior notice.

Access for other reasons, such as routine inspections, the required prior notice that needs to be issued to a tenant ranges between 24 hours and 14 days.

These are just some of the difference. So it seems that as a landlord the rules of conduct toward your tenant can vary greatly depending on which state your investment property sits. And your rights, as a tenant, also depend on what side of the border you live in.

In an age where the efforts to create equality have made such a powerful difference to the way we live, it seems at odds with that history that a tenant in Albury has different rights to a tenant in Wodonga.

About Us

George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.

George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.

As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.

George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income.

If you’re looking for a property manager who thinks like a landlord and whose business is built on tested processes, contact us by clicking HERE.

Copyright © 2022, www.propertyquarters.com.au

NEW REFORMS TO THE NSW RESIDENTIAL TENANCY ACT

NEW REFORMS TO THE NSW RESIDENTIAL TENANCY ACT

by | Jan 15, 2019 | Financial, Landlord mindset, Legislation, Management Systems

The Residential Tenancy Amendment (Review) Bill 2018 has now been passed by Parliament.

The Bill has been designed to ensure the Residential Tenancies Act 2010 continues to protect both tenants and landlords. Whilst the Bill has been passed by Parliament, the next step is the development of the regulations, being the specific requirements for monitoring and enforcing the law. The regulations will also answer many of the questions raised by the Bill including the start date for the reforms.

What are the changes?

Minimum Standards
There are rules of what makes a property fit for living. These include:

  • Property is to be structurally sound.
  • Each room must have adequate lighting and electricity outlets
  • Property must have electricity, gas or oil (dependant on availability), proper plumbing and drainage, ventilation and bathroom facilities in a separate room including toilet.
  • All of the above-mentioned should be free of dampness/mould and in a good state of repair

Disclosure of information
If the property is a strata lot (ie apartment, townhouse, unit) a copy of the strata by-laws must be given to the tenant before they enter into a tenancy agreement.

Condition reports
Landlords and agents will have the option of giving the tenant either 2 copies of a written report or one electronic version on signing the tenancy agreement.

Landlords information statement
Landlords will need to sign a new form acknowledging that they know their rights and responsibilities as a landlord. The agent will need to have a signed hard copy of the document before they can sign a tenancy agreement on behalf of the landlord. This form has yet to be created.

Landlord’s remedies on abandonment
The break fee payable by a tenant on a fixed lease will change to,

  • 4 weeks rent if less than ¼ of the lease has expired
  • 3 weeks rent if more than a ¼ but less than a half of the term has expired
  • 2 weeks rent if more than ½ but less than ¾ of the term has expired
  • 1 weeks rent if more than ¾ of the lease has expired.

Termination notices for non-payment of rent or charges
The landlord will be able to issue a termination notice when a tenant has not paid rent, water usage or utility charges for more than 14 days.

Smoke Alarms
Landlords are fully responsible for Smoke Alarms. A tenant that carries out repairs to the smoke alarm, such as change of batteries, is entitled to be reimbursed.

Repairs/Alterations
Tenants will be allowed to make some changes to the property without needing to seek permission. A list will be included in the regulations.

Rent Increases
Tenants on a periodic tenancy agreement, i.e. where the fixed term has passed, can only be given one rent increase in any 12 month period.

Domestic Violence

Termination
If a tenant is the victim of domestic violence, they will be able to give notice to vacate the property effective immediately, even if the tenant is in a fixed lease, without penalty. A tenant would be considered a ‘domestic violence victim’ if they have a current DVO or they are co-tenant/ person related to the tenant with the DVO that lives on the premises. A tenant would also be eligible if they hold a declaration from a medical practitioner that states domestic violence.

Liability of tenant or co-tenant for actions of others
If domestic violence occurs on the premises and damage is done to the property as a result, the tenant, as the victim of domestic violence, will not be responsible for the cost of any repairs. Any co-tenants to the lease may also be exempted.

Marketing
If a tenanted rental property is due to be marketed for sale or lease, the agent has only one opportunity within the 28 day period before marketing begins to take interior photos. Tenants must be given fair notice to enable them to remove any personal effects they would not like presented in the photos.

A landlord will need written consent from the tenant to publish photos where any of the tenant’s possessions are visible. This consent cannot be unreasonably withheld unless under the circumstances of Domestic violence.

The new tenancy reforms create a greater need for Landlord Insurance. The changes to the break lease penalties could mean higher losses from tenant abandonment and the allowances to victims of domestic violence means that landlords will also become victims.

With the landlord becoming fully responsible for smoke alarms, it will be essential to use the services of a specialist smoke alarm inspection service.

As always, we will need to read the fine print once it has been written and released as law.

About Us

George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.

George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.

As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.

George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income.

NEW REFORMS TO THE NSW RESIDENTIAL TENANCY ACT

NSW RESIDENTIAL TENANCY LAW REVIEW

by | Jul 10, 2016 | Legislation, Tenant

The Residential Tenancies Act 2010 includes provisions for the current minister to “…conduct a review after five years to determine whether the policy objectives of the Act remain valid and whether its terms remain appropriate for securing those objectives.”

It’s comforting to know that our legislation is progressive enough to allow for corrections. Nothing is perfect, and this review allows for the public at large whether individually or through special interest groups, to voice an opinion of changes that would benefit the community through property legislation.

Public submissions closed on 29 January 2016 and the NSW Fair Trading has been reviewing those submissions. On the 17th of June they released “Residential Tenancies Act 2010 – Statutory Review” outlining their recommendations with an explanation for each.

Amendments to Act will be drafted in 2017.

Recommendations include

• Clarity on shared housing arrangements.
• Disclosure requirements, particularly for properties used in drug crime.
• Strata by-laws – to be issued to tenants when signing a lease.
• Update to the Tenant’s checklist to include safety requirements.
• Rental Bonds
– Remain at 4 weeks.
– Abolish the payment of interest to tenants.
– All landlords/agents register with Rental Bonds online.
• Ability for condition reports to contain photos.
• Agent/landlord to consult with the tenant for the use of internal photos for marketing.
• Water usage – more clarity on what is “separately metered premises”.
• Rent increases – no need to send “60 days’ notice” if increase is already documented in a fixed term lease.
• Repairs
– Allowance for a tenant to terminate a lease based on repairs not being carried out.
– Time-frames for repairs.
– Authority for the Tribunal to order the landlord to carry out repairs.
• Alterations – landlord may not unreasonably refuse consent for minor alterations that would make the premises livable for disabled or elderly tenants.
• Changes to the Act that will encourage long term leases.
• A better method for calculating a tenant’s liability when breaking a lease.
• Domestic Violence – make it easier for victims of domestic violence to terminate a lease.
• Residential tenancy databases – tenants not to be charged to find out if they are listed.
• Allow for notices to be served electronically.

The full report can be downloaded here

To see different tenancy legislations in different states see our link “Renting in Australia- One Country, Eight Different Rules”

About Us

George Astudillo is the founder of Property Quarters, an agency that values communication and great relationships with its landlords.

George now has more than 30 years in real estate, including 15 years as the owner of a national real estate franchise. He’s also an accredited auctioneer and is the author of “The Landlord Mindset”, a book with his best tips to help landlords look after their investments. His book has been quoted in the SMH, The Huffington Post and The Age.

As the founder of Property Quarters, George takes great care in looking after his landlord’s investments. Having seen it all and worked with may landlords and tenants, he’s a strong mediator and negotiator and knows how to navigate through property legislation.

George is trusted by his landlords to advise on the financial management of their investments. He’s put in place proven processes to ensure each property he looks after is managed effectively to retain its value, quality tenants and rental income.

If you’re looking for a property manager who thinks like a landlord and whose business is built on tested processes, contact us by clicking HERE.

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