Angry ex-tenant drives through fence and into house....

[kathryn d]

Under the new NSW Resi Tenancy Act 2010 is is FORBIDDEN to have a tenant take out insurance as a requirement or a condition in the lease.

You are correct..just read it myself.
You can't even give a tenant a gift in NSW.
70% of the population is not in NSW.
Australia is very behind the times.

The new NSW RTA does not indemnify the tenant. They are still civilially, criminally and every other way liable for damages.You may not be required to have this insurance, but if the LL's insurance decides to come after the tenant to recoup losses you may lose everything.

Other than NSW you can make it a condition of your lease.
You can make many things a condition of their lease.

 

[Propertunity]

You can't even give a tenant a gift in NSW.

Hi kathryn,

The Act runs to 135 pages and I can't seem to find any part about 'no gifts to tenants'. Can you point me to it? Thanks, Alan.

 

[kathryn d]

Hi kathryn,

The Act runs to 135 pages and I can't seem to find any part about 'no gifts to tenants'. Can you point me to it? Thanks, Alan.

http://www.parliament.nsw.gov.au/prod/parlment/nswbills.nsf/0/d94dda4801c2408bca257735001b1bff/$FILE/b2009-069-d31-House.pdf
on page 10..."e"...."any other benfit"

(2) Terms having the following effects must not be included in a residential
tenancy agreement:
(a) that the tenant must have the carpet professionally cleaned, or pay
the cost of such cleaning, at the end of the tenancy,
(b) that the tenant must take out a specified, or any, form of
insurance,
(c) exempting the landlord from liability for any act or omission by
the landlord, the landlord’s agent or any person acting on behalf
of the landlord or landlord’s agent,
(d) that, if the tenant breaches the agreement, the tenant is liable to
pay all or any part of the remaining rent under the agreement,
increased rent, a penalty or liquidated damages,
(e) that, if the tenant does not breach the agreement, the rent is or
may be reduced or the tenant is to be or may be paid a rebate of
rent or other benefit.

 

[jaycee]

Hi kathryn,

The Act runs to 135 pages and I can't seem to find any part about 'no gifts to tenants'. Can you point me to it? Thanks, Alan.

Why would anybody bother to legislate something like that ?!

 

[Propertunity]

Thanks kathryn,

So it looks as though you cannot put into a resi lease, a clause that says if the tenant behaves, that they will get some kind of benefit (or gift). But I imagine that would not prevent a LL from giving a gift all the same (if that is what the LL chooses to do).

Notwithstanding the fact that for it to be tax deductible to the LL it must not be a gift for "entertainment" (such as movie tickets).....but that is a whole 'nother issue. Let's not go there.

 

[kathryn d]

Thanks kathryn,

So it looks as though you cannot put into a resi lease, a clause that says if the tenant behaves, that they will get some kind of benefit (or gift). But I imagine that would not prevent a LL from giving a gift all the same (if that is what the LL chooses to do).

Notwithstanding the fact that for it to be tax deductible to the LL it must not be a gift for "entertainment" (such as movie tickets).....but that is a whole 'nother issue. Let's not go there.

This Act is quickly taking any ability for 2 parties to make a mutually beneficial contract.
Should a LL want to renovate, and offer a tenant free rent until completion in exchange for the inconvenience, and the tenant does "something" that impedes the completion, the LL wouldn't be able to state "but I gave them free rent", and they are costing me money.....or something of similar phrasing.

Soon..NSW will have a shortage of affordable housing, if they continue to remove rights from a LL....IMO

 

[jaycee]

kathryn, it's not drastic, life has gone on unti lnow and it will continue tomorrow... we do understand what your'e telling us, it' snot somehting that has not occurred to us before, we aren't dumb... but we do accept the reality... it really isnt; that new, so not sure how quickly thigns will chagne (re housing availabity).... probably a bit of a shock to you I guess...

 

[kathryn d]

kathryn, it's not drastic, life has gone on unti lnow and it will continue tomorrow... we do understand what your'e telling us, it' snot somehting that has not occurred to us before, we aren't dumb... but we do accept the reality... it really isnt; that new, so not sure how quickly thigns will chagne (re housing availabity).... probably a bit of a shock to you I guess...

Rob and I actually refer to the tenancy rules of NSW as Ontario (Canada),
Very similar rules, where many LLs are starting to consider investing in other friendlier provinces.

If we were to ever buy an IP in Australia, it wouldn't be in NSW.
When there becomes a shortage of IPs, you many have rules relaxed.

At the moment we can make all the money we want in Nova Scotia, where rules are at least more in our favor.I have my eye on 4-5 houses at $75k which are really CF+.

 

[jaycee]

Interesting and can see why you'd choose that

Also you are allowed to express surprise or even dissatisfaction so perhaps my previous post wasn't that helpful

 

[kathryn d]

Interesting and can see why you'd choose that

Also you are allowed to express surprise or even dissatisfaction so perhaps my previous post wasn't that helpful

Jaycee,
I just take your comment at face value.
I like to read about people's thoughts on different things.

 

[makecents]

Im a few days late with my post here, but could you claim anything from victims of crime? I have heard they helped in a situation where a random drunk attacked somebody's property in a similar fashion. Not sure which state sorry.

 

[DJ Debbie]

OMG I am only new to this forum. Hope this never happens to my investment property.