3 important changes to NSW Residential Tenancy legislation

The NSW Office of Fair Trading has announced comprehensive changes to the Residential Tenancies Amendment (Review) Act 2018 [NSW] and the Residential Tenancies Regulation 2019 [NSW]. The Residential Tenancy Laws NSW changes will come into effect on 23 March 2020 and will affect property managers, landlords and tenants.

If you are wondering how these landlord legislation changes will impact you and to ensure that you remain compliant, this video will pinpoint three changes that are important and every landlord should know about.

If you’re ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence.

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Minor Alterations

Tenants may make minor alterations, fixtures, additions and renovations with the landlord’s consent, but the landlord cannot unreasonably withhold consent if the alteration, fixture or addition is considered unreasonable. A prescribed list in the 2019 Regulation will outline was is considered unreasonable.

Break Lease Fees

Tenants have the right to break their lease agreement if it is signed after 23 March 2020. Tenants will pay a break fee of:

• 4 weeks rent if less than 25% of the fixed term has expired
• 3 weeks rent if 25% or more but less than 50% of the fixed term has expired
• 2 weeks rent if 50% or more but less than 75% of the fixed term has expired
• 1 week’s rent if 75% or more of the fixed term has expired

Increased disclosure duty for landlord

The disclosure statements have been strengthened, meaning landlords are required to ensure that tenants know anything of the property’s history that they should know. This includes:

• if the property:
  • has been affected by flooding or bushfire in the previous 5 years
  • has significant health or safety risks (unless they are obvious when you inspect the property)
  • has been the scene of a violent crime in the previous 5 years
  • is affected by zoning or laws that will not allow you to obtain a parking permit and only paid parking is available in the area
  • is provided with council waste services on a different basis to other premises in the area
  • is listed on the loose-fill asbestos insulation register
• if other people are entitled to share the driveway or walkway.

Dual flush toilets

It should be noted that form March 2025, all toilets in rented properties must be dual flush with a minimum 3-star rating in accordance with the Commonwealth Water Efficiency Labelling and Standards (WELS) scheme. The WELS scheme uses a rating system to help consumers make informed choices about the water efficiency of products they buy. Landlords who intend to replace or upgrade existing toilets in their property should consider installing dual flush toilets with a minimum 3-star WELS rating to meet the water efficiency requirements by 23 March 2025.

Some of the other reforms include:

• Rent increases must be limited to once per year during a periodic agreement when the fixed term has passed.
• Landlords must obtain tenants’ prior written consent to publish photographs or video recordings of premises, including property interiors for advertising purposes which may show tenants’ possessions.
• Repairs and replacements of hardwired smoke alarms must be carried out by an authorised electrician
• Non-payment of water usage or utility charges may now result in tenancy termination (in addition to non-payment of rent)
• Victims of domestic violence will be able to terminate their tenancy without penalty

To find out more information about these changes coming in to effect to the Residential Tenancies Act, we encourage you to visit the NSW Fair Trading website or contact our office.

If you’re ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence.

YES, DOWNLOAD MY CHECKLIST

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