News

The Government have announced that the Residential Tenancy reforms are to come into effect 1st July 2024.  Rest assured here at Trove we are across all the changes and have amended our systems and processes to ensure we are compliant.

While we are frustrated at some of the changes, we are confident we will be able to continue to manage your property effectively and continue to ensure both tenants and landlords carry out their obligations under the Tenancies Act.  

To see what the major reforms are, read on...

Terminating A Tenancy

When terminating a tenancy either periodic or fixed term, a landlord can only do so by providing the tenant with a 'prescribed reason'.  To see a full list of prescribed reasons click here.  Additionally the notification period to terminate a fixed term lease will increase from 28 days to 60 or 90 days depending upon the 'prescribed reason' given.

The tenant's responsibilty for break of lease will be limited (depending upon circumstance and lease type).

Routine Inspections

Routine inspections will be limited to 4 per year.  In the event a follow up inspection is required, instead of simply re-attending we will now be required to issue the tenant with a formal Form 5 notice to remedy breach, along with a Form 2 notice to enter to determine if breach is remedied.   Additionally when conducting a routine inspection, we are now prevented from taking images of 'personal possessions' (which we have always avoided).  A 'personal possession' is an item that can reasonably be used to identify a person such as personal pictures, artwork etc

Pets

If a tenant is wanting a pet at a property, they must apply and consent from the landlord can not 'unreasonably be withheld' provided the tenant agrees to comply with any reasonable conditions imposed by the landlord (such as the pet must be kept outside for larger breeds, that carpets must be steam cleaned upon vacating etc).  As is currently the case, the tenant will be be fully responsible for any pet damage.   

Some valid reasons to 'reasonably refuse' would be:

- the property is not fit for purpose i.e. a courtyard property with a large dog, or no fencing

- that there are too many pets at the property already

- the landlord is allergic to pet hair etc

In the instance the property is community titled or strata, if the by laws of the premises prohibit pets, then these by laws would need to be upheld and the pet would be declined.

In the event a pet is declined, and the tenant proceeds, this is a breach and the lease can be terminated. 

Tenancy Applications

This is one of the area's with the most prohibitive legislative changes, that sadly may affect many applicants.

The new provisions limit what an agent/landlord can ASK a potential tenant in their tenancy application.  For example:

- No more than 2 documents relating to their ability to pay rent (payslips centrelink etc)

- Removing our ability to contact employers to verify employment and income

- No more than 2 documents relating to their suitability to enter into the residential tenancy agreement (i.e. previous inspection reports, copies of tenancy ledgers etc)

Many applicants will simply provide more than we can ask, verifying multiple sources of income which is perfect as we can then confidently determine affordability.  Our concern is that for tenants with multiple income sources such as a combination of jobs and government benefits, they will be adversely affected as agents will be unable to 'ask' for more - leaving many wonderful applicant at risk of finding it even harder to secure a home.  We will recommend applicants with multiple income sources provide a redacted bank statement as a way of verifying their total income to try and solve this issue

We will continue to lobby government on many of these reforms and hope that common sense will prevail in time. 

Other limitations placed on agents/landlords in tenancy applications are;

- No more than 2 documents verifying the applicants identity

- Removing our ability to ask referees whether the applicant has previously taken legal action, has defended legal action or been in a residential tenancy dispute with the landlord or agent.

- Removing our ability to ask referees whether the applicant has previously been given a Form 2 (will be known as a Form 5) except if the Form resulted in termination of the tenancy. 

New Forms

There are now an abundance of new forms provided by Consumer and Business Services for both Landlords and Tenants to serve upon one another regarding a tenancy agreement.  The inclusion of many of these forms is to make it easier for both parties to understand what form to serve when!

Other Reforms

There are also a bunch of other more minor reforms such as:

• The law has been clarified to make clear that when a tenancy agreement changes from fixed to periodic the rent can’t be increased within 12 months of the original agreement or the last increase, not even by mutual agreement.
• A tenant wanting to sub-let a property will not be able to be unreasonably refused and will not be subject to a further fee for the landlord to give consent.
• Landlord can not decline minor modifications UNLESS it is going to significantly change the premises (for example you can't drill into tiles in the bathroom unless there are spare tiles to utilise at end of tenancy to make good the modification).   A tenant is still responsible to return the premises to the original condition at end of tenancy. 
• Water must be on billed within 30 days of issue of bill (currently 90 days)
• There are now provisions around drug contamination to make it easier to terminate a tenancy and to recoup the cost of remediation from the tenant
• Minimum efficiency standards – when replacing any showerhead, cold tap, mixer tap, toilet electric or gas water heater or electrical appliance, the replacement must energy efficiency standards.  
• Excessive Rent – the tenant has the ability to apply to SACAT if they believe the rent increase is excessive compared to other comparable properties.  Evidence must be provided and SACAT can award a reduction if proven (not really relevant to us at Trove, more so for private landlords)
• Domestic Violence – tenant can terminate immediately with a Form 15 but must provide evidence of Intervention order, or when reported by an authorised professional (lawyer, health practitioner, social worker, dv support provider).
• Death of a tenant – new forms to terminate
• Break Of Lease (BOL) on termination – tenant will now be responsible for full BOL charges
• Abandoned property – in the event a tenant abandons property, the responsibility for the landlord to retain these goods has been decreased from 28 days to 7 days.