NSW Residential Tenancies Act 2010

As I previously mentioned in a few of my posts, as of January 31st 2011 there were some significant changes made to the NSW Residential Tenancies Act. Below are a few of the key changes, and what they mean to you.

Notice Periods – The only notice periods to change, are in relation to the landlord ending a tenancy on “No Grounds” which has changes from 60 days notice, to 90 days notice and the “End of a fixed term” which has increased from 14 days to 30 days. However, once given notice, (any form of notice outside of the fixed term, not just the two mentioned above) the tenant now has the right to vacate the property any time on or before the vacate date. Which in essence means you could give your tenant 90 days notice, and the next day they could come in and drop the keys off. This is unlikely due to the time it takes to find alternate accommodation and pack up a house, but theoretically there’s nothing to stop it from happening.

Rental Bonds – 4 weeks rent is the maximum amount of bond that can be taken. Previously furnished properties used to be able to ask for 6 weeks, but this is no longer the case. Also you are no longer allowed to ask for “top up” amounts when the rent is increased. Owners and agents now have additional time in which to lodge the bonds with the Rental Bond Board.

Water Usage – In order to claim the water usage back from your tenant, the premises must contain the water efficiency measures prescribed by the Regulations
1) All internal cold water taps and single mixer taps on the premises (other than bathtub taps, garden taps, single hot water taps, toilets and taps for appliances) must have a maximum flow rate of 9 litres per minute.
2) All showerheads on the premises must have a maximum flow rate of 9 litres per minute.
3) There must be no leaking taps on the premises at the commence of the agreement.

· For water to be recoverable, a copy of the water bill setting out the usage charge must be provided to the tenant.
· The tenant must be given not less than 21 days to pay the account.
· If the landlord/agent does not provide and request payment of a bill by the tenant within 3 months from the date of issue of the account, the water usage will be unrecoverable by the landlord.
· If the landlord/agent has issued copies of the water usage account to the tenant and has sought payment within 3 months from the date of issue, the amount for usage will continue to be recoverable if not paid by the tenant.
· Any rebate received by the landlord with respect to the tenant’s water usage or an equivalent amount, must be passed on to the tenant.

Service of Notices – hand delivery of notices to the tenant’s letterbox is now an acceptable method of delivery of notices. This will save 3-4 days in the service of notices by mail.

Holding Fees – these deposits can only be charged once the tenant’s application has been approved. If the tenant withdraws, they will lose the entire fee.

Disclosure - owners/agents must disclose whether the property has a sales agency agreement or if the bank has served any reposession/foreclosure notices. You must disclose whether the house has been affected by bushfire or floods in the past 5 years. You must disclose if the property has been the scene of a serious violent crime, or if there is a serious health or safety risk at the property.

Break fee - a fixed penalty can now be applied for a tenant who seeks to break the lease prematurely ie within the lease term. This must be documented in the lease if it is not documented then a set break fee applies on a tiered scale.

Early Release without penalty – tenants are now permitted to end the fixed term if they accept an offer of public housing or move to a nursing home.

Sale of Rented Premises – two weeks notice must be given to the tenant prior to the placement of a notice for the sale of the property. Up to two inspections per week are permitted and further access can be negotiated.

Sub-letting – tenants will still require the owners consent to bring a new co-tenant into the property.

Domestic Violence – victims of domestic violence will have the right to change the locks to keep out the person listed on an AVO and to seek to take over the lease of the premises is their name is not already on the lease.

Rights of co-tenants – disputes between co-tenants can now be brought in front of the Rental Tribunal. Co-tenants can give 21 days notice to terminate the agreement outside of the fixed term. Operationally, this may mean that all persons listed on the tenancy agreement will need to give notice to terminate the lease.

The new legislation in it's entirety can be found here www.legislation.nsw.gov.au