News

We have received the final Residential Tenancies Amendment Bill from the Malinauskas Government set to be before parliament before the end of the year.

REISA, Trove and our industry have actively been involved in providing feedback throughout this process to the Ministers office.  We are pleased that many of our recommendations have been adopted which will ensure we can continue to remain effective in managing and ensuring your investment property is well maintained.

A summary of the proposed key changes are as follows:

 

ENDING TENANCIES

Notice to be given at end of fixed term (Section 83A)

This is the most critical change and has been brought in to improve the rights of renters and give more security.  Currently, when a lease is nearing the end of its term, the landlord can either terminate the tenancy, providing 28 days notice, or negotiations can be undertaken to ‘extend’ the lease.  Under the new reforms a lease will require a ‘prescribed ground’ to terminate.  The list of prescribed reasons is:

• You are selling
• Landlord is moving in (can not readvertise for 6 months without SACAT approval)
• Conducting major renovations/demolition (can not readvertise for 6 months without SACAT approval)
• The tenant or their visitor intentionally or recklessly causes serious damage to the property, including safety equipment and common areas;
• The tenant or their visitor puts neighbours, the landlord, or the landlord’s agent, contractors or employees in danger;
• The premises are unfit for human habitation, destroyed totally, or destroyed to the extent that they are unsafe;
• The tenant or anyone else living at the property seriously threatens or intimidates the landlord, their agent or the landlord’s contractors or employees;
• The tenant has failed to comply with a SACAT compliance order;
• The tenant has already been given two breach notices and the same breach occurs;
• The property is being used for illegal purposes;
• The tenant has brought in other tenants or sub-tenants without consent;
• The tenant has not paid the bond as agreed;
• The landlord is a government housing authority and the tenant misled the authority so they could get social housing;
• The tenant has been involved in an illegal drug related activity in the property;
• The tenant is keeping a pet without consent and SACAT has made an order excluding the pet;
• The tenant is renting a house from a charity or a community housing provider and the tenant no longer meets the charity or community housing provider’s eligibility requirements to continue as a tenant;
• The tenant has engaged in false, misleading or deceptive conduct or concealed material facts from a landlord or agent in inducing the landlord to enter into the tenancy agreement.

Notice to be given at end of a fixed term (Section 83A)

When providing notice to terminate under a ‘prescribed ground’ listed above, the notice period will now be 60 day (increased from 28 days).

Supporting Evidence for a prescribed ground (Section 91)

Notice of termination must be accompanied by written evidence as approved by the Commissioner (yet to be determined)

Compensation for termination in certain circumstances (Section 84A)

A landlord will now be entitled to ‘break lease’ costs when a tenancy is terminated by a tenancy breach.

Maximum Liability for fixed term tenancies (Section 75A)

When a tenant terminates their lease early, the tenant will not be responsible for any more than one months rent for each remaining 12 month period on their lease.  The landlord will still be entitled to usual calculated apportionment of costs associated with reletting such as advertising and agents fees.

Tribunal may make orders in relation to retaliatory behavior (Section 90A)

SACAT may declare a termination notice has no effect if satisfied it is retaliatory and the landlord was wholly or partly motivated by an application to SACAT by the tenant or action taken or proposed by the tenant to enforce their rights.

Notice of termination by tenant for successive breaches of the agreement (Section 85AA)

In the event a landlord fails to remedy successive breaches (ie fails to repair) the tenant will be entitled to terminate with 7 days notice

 

RENT AND INSPECTIONS

Rent Increases (Section 55)

Rent can no longer be increased by ‘mutual agreement’ unless it is at least 12 months after the start of a tenancy (i.e. new kitchen installed)

Manner and payment of rent (Section 56A)

Aimed at private landlords, a landlord must now ensure the payment of rent is a convenient manner and provide one electronic option that does not involve a fee from a third party operator

Inspections (Section 72)

Inspections are now limited to 4 per year and can be conducted with 7 – 28 days notice (previously inspections could be conducted every 28 days with 14 days notice)

 

PETS

Keeping pets on premises (Sections 66C-66G)

A tenant may apply for approval to keep a pet at the premises.  A landlord must not unreasonably withhold consent but may impose reasonable conditions such as the pet must be outside only, carpets must be steam cleaned etc.  A tenant may apply to SACAT if they believe refusal or conditions to be unreasonable.

 

BONDS

Bonds (Section 61-63)

It is proposed that their will be provisions for tenants to lodge their own bonds via bonds on line – currently paid to the Agent or Landlord who then lodges.  The Government is aware that this process must be instantaneous to be successful as keys will not be given until a bond is paid.  They are also looking at reducing the timeframes for agents/tenants to respond to bond claims in the aim of reducing the time frame for this process which will be welcome news if implemented.

 

MINIMUM STANDARDS AND ALTERATIONS

Minimum housing standards at the beginning of the tenancy (Section 67A)

We are awaiting further clarification regarding this clause, however my understanding is the ‘intention’ is for the property to be clean and in a good state of repair fit for habitation which Trove already ensure.

Alteration of premises (Section 70)

A landlord will not be able to withhold consent for minor, or necessary alterations for infrastructure or disability (i.e. NBN, security monitors, handrails, door handles) provided they do not significantly change or affect the structure of the premises.

 

ENERGY EFFICIENCY AND UTILITIES

Energy efficiency of appliances, fittings and fixtures (Section 68A)

Landlords will be required to comply with energy and water efficiency standards prescbribed by legislation (yet to be drafted) in relation to appliances, fittings and fixtures when installed or replaced.

Water – Statutory and Excess Charges (Section 73)

Landlords will now only be able to charge for water consumption only (can not recoup the quarterly supply charge (currently $74.20 pq).  A landlord will also be responsible for excessive water charges caused by a fault in water infrastructure of equipment

 

DOMESTIC ABUSE

Notice of termination by tenant on ground of domestic abuse (Section 85D and 89A)

A tenant may terminate their tenancy by serving notice with supporting evidence of domestic abuse.  They will no longer need to apply to the tribunal to have their tenancy terminated.

Tribunal may make orders in relation to circumstances of domestic abuse (Section 90B)

SACAT may make orders to terminate or vary a tenancy such as remove a perpetrator, change a sub tenant to be the primary tenant, or make a termination notice served for damage to a premises by the perpetrator invalid.

Change of Locks (Section 66A-66B)

A tenant who has experienced domestic abuse may provide prescribed evidence and alter any lock or security device without permission, provided access is provided to the landlord/agent.

 

DRUG RELATED CONDUCT

Testing and remediation in relation to drugs (Section 67B)

If a landlord is aware that drug related conduct has occurred on the premises, they must ensure that the premises is tested and if necessary remediated as soon as reasonably practicable.  Drug related conduct is also a prescribed reason to terminate a tenancy.

 

DISCLOSURE AND DEALING WITH TENANT INFORMATION

Provision of Information for prospective tenants (Section 47C)

A landlord or agent must make prescribed information available to prospective tenants and must not make any false statements (this is aimed primarily at private landlords who make misleading statements about pending repairs/improvements etc, or non disclosure of important items such as mould etc.  It will be expanded to include providing tenants information on ‘embedded power networks’

Provision of Information to landlords (Section 47B)

A prospective tenant must not give a landlord false information or falsified documents in connection with their application for tenancy (if discovered is now a prescribed reason to terminate a tenancy)

 

MISCELLANEOUS

Occupation of adjacent buildings such as studio’s or ‘granny flats’ (Section 3)

The bill now incorporates these dwellings under the definitions of a Residential Tenancy.

Termination following death of a sole tenant (Section 79B)

The tenancy agreement will now terminate 30 days after the death unless terminated earlier by SACAT order or an agreement with the administrator or next of kin.

Abandoned Property and personal documents (Sections 97B-97C)

The timeframe for abandoned property to be stored has been reduced to 7 days (previously 28)

Internal review in relation to certain SACAT orders (Section 114A)

This is exceptionally well received.  Often a ‘review’ of a tribunal order is used as a stalling tactic for parties to not comply with SACAT orders.  Reviews will not be heard unless payment has occurred.

Penalties and Offences

A review of current penalties for non compliance of the Act with expiation fees is being conducted to ensure the penalties act as a sufficient deterrent and punishment for breaches of the Act