Changes to NSW Residential Tenancy Law

I found the front summary pages with all of the stats interesting.

1. The overwhelming majority of Landlord's (greater than 85%) use a PM.
2. 1 in 8 tenancies ends up at the Tribunal in dispute....this seemed high...(maybe the reason for # 1, or would that be the cause ??).
3. The overwhelming majority of Landlord's are private individuals, and of those the overwhelming majority only have 1 or 2 IP's.
4. A complete dearth of large institutions and super funds as Landlords. Obviously they don't like owning NSW residential property.


The Tenancy Union will be right in there fighting tooth and nail for the tenant's rights when these proposed changes to the legislation are tossed around. As was asked a couple of months ago on this forum, I wonder if there is a Landlord's association in there batting for the Landlord's.....or are they going to cop it all on the chin and simply "look at the big picture" again.
 
the stats make sense. Most resi property investors are private individuals and there are very few funds that own residential property. Most investors only own one property. That's part of the reason why we (present company excepted, Dazzling) like residential property, isn't it? I've always liked it because it's such a fragmented and inefficient market because most people don't really know what they're doing. So if you just know a little more than your average 'we have one investment property for our retirement' type of owners, you'll do better.

I'm a bit surprised as the proportion that go to tribunal, though.
Alex
 
This is why I posted the link:

"The public consultation period ran for almost two months. More than 100
submissions were received in response to the Options Paper. These came from a wide range of organisations representing the interests of tenants, landlords and agents as well as community groups, government departments, legal bodies, Members of Parliament and private individuals. Overall, submissions were received from the following categories:
• 28% from real estate agents
• 27% from landlords
• 14% from tenants
• 12% from government agencies
• 19% others"


When you consider the wide ranging effects "over 100" seems a bit slim, and only around thirty landlords bothered.

If we as landlords don't agree with any of the changes then we should be making comment now, not once the legislation is passed.

Regards

Andrew
 
Hi BH

Found the following interesting and possibly relevant to those who have strata properties. Basically indicates that tenant should be give security key and the like free of charge, generally the landlord/RE charges a deposit to ensure the return of these special keys and the like.

In our case we have electronic gates for which the electronic controls cost $35 each, we insist on a $60 deposi which is refundable on the return of same item. It seems that under the proposed changes the landlord may not be able to ask for a security deposit? What is your view?

6.2 Reasonable security

Presently, landlords are required to ensure that any premises they offer for rent are ‘reasonably secure’. The options paper outlined a number of possible reforms aimed at providing greater clarity and certainty in this area of the law.

Analysis of submissions

There was general support for the idea of giving more emphasis to security in the premises condition report. Many submissions felt this would help to raise the issue of security in the minds of both parties early on, thereby ensuring that any shortcomings were addressed hopefully before any loss occurs. However, a number of landlords took the view that tenants should raise any concerns about the level of security when inspecting the property not after they sign the lease or move in.

Some submissions called for the introduction of minimum standards as to what constitutes reasonable security. In particular, it was suggested that deadlocks on external doors and keyed window locks should become mandatory. This was seen as a way to make the law more black and white, reducing the level of subjective interpretations and disputes. Another idea was that landlords should be obliged to change the barrels of all door locks prior to the start of each tenancy. Others opposed setting minimum standards and saw a need to balance security against safety concerns in the event of a fire or other emergency.

There was general support for the Queensland approach of prescribing a non-exhaustive list of factors to assist with determining whether premises were reasonably secure. This was seen as a way of providing guidance to all parties, decreasing complexity and helping to resolve disputes.

Generally, landlords and agents were in favour of restricting the ability of tenants to seek compensation following a break-in. It was argued that landlords should not be the unpaid insurers for tenants. Limiting tenants to compensation only if they had previously raised concerns about the level of security which were ignored or not adequately addressed was seen as fair and reasonable compromise by most landlords and agents. Some tenant groups argued that this should not prevent tenants from seeking compensation for latent defects or those not immediately obvious to a reasonable tenant. The problem of proving oral complaints was also raised. One industry group was against the idea as they feared it would encourage tenants to automatically raise security concerns as a matter of course.
Almost all submissions were in favour of clarifying that tenants are entitled to receive copies of keys free of any charge. It was suggested that this should cover swipe cards, electronic door or garage devices and common area keys.
35
There was a call to clarify that all co-tenants named on a lease should receive a set of keys. It was also submitted that landlords and agents should not unreasonably refuse to supply replacement keys for those lost or misplaced, so long as they could charge an appropriate fee for doing so.

Findings and proposed reforms

The review finds that there is a need for greater clarity and certainty in regard to the level of security of rented premises. Placing more emphasis on security matters in the premises condition report each tenant receives at the beginning of a tenancy is a step in the right direction and will help to raise the profile of this issue early on. A specific section of the report should detail the type of locks on external doors, whether the windows have key locks, any other security features such as alarms, bars or security screen doors and whether the locks were changed prior to the start of the tenancy. Importantly, the report should also give space for the tenant to express any concerns about the security features which may need the attention of the landlord or agent.

Adopting the Queensland model of prescribing a non-exhaustive list of factors for the Tribunal to consider when assessing whether a property is reasonably secure would assist to provide clarity and certainty. This list would become a guideline and lift the overall level of security without the need to impose minimum standards. Examples of factors include the physical characteristics of the premises and adjoining areas or the requirements of insurance companies for the tenant to obtain contents insurance.

Both landlords and tenants should be held accountable for their actions in relation to security. Tenants should not be able to recover from landlords compensation when they have had a reasonable opportunity to raise concerns and have failed to do so. However, if concerns are raised which are ignored or inadequately addressed then it is only fair and reasonable that the landlord be held liable in the event that their inaction directly causes the tenant to suffer a loss.

Tenants should have a clear entitlement to receive copies of all keys to the premises, or any facilities associated with the premises for their use and enjoyment, free of any charge. This should extend to all tenants named on the lease and apply to electronic cards, garage door openers and other security devices. However, it is only fair that in the event that a device is lost by a tenant they be required to pay a reasonable charge for its replacement.

It is therefore, proposed that:

61) a specific section be included in the premises condition report highlighting issues relating to the security of the premises;

62) the Queensland model of setting out a list of key factors to consider when assessing if premises are ‘reasonably secure’ be adopted;

63) tenants be encouraged to raise security concerns and the Tribunal, before awarding any compensation, be required to consider the actions all of the respective parties took, or ought to have reasonably taken, to address any security concerns; and

64) the law clarify that all tenants named on a lease are entitled to copies of keys or other security devices free of charge, but recognise that tenants can be charged a reasonable fee for the replacement of lost items.
 
Hi HandyAndy,

My interpretation as well.

What about the right of the tenant to carryout improvements. They can do so at there own cost, and unless agreed to in writing prior to the improvements are not entitled to compensation for these improvements.

However, if the tenant damages the property the cost of any improvements carried out by the tenant are to be put towards the cost of the repair. This is even if there was no previous agreement to compensate for the said improvements. :confused:

If selling the tenant is entitled to a minimum discount (I assume %, although the amount is yet to be determined) during the showing period. If this is the case I hope that the tenant cannot unreasonably refuse access to prospective purchases. :(

The light bulb replacement being the tenants responsibility is fair enough.

The break lease clause is greatly biased to the tenant. They can break the lease at anytime with 21 days notice, and are no longer responsible for the balance of the lease or until a new tenant is found. Instead they will have a finite amount to pay based on a sliding scale. Re-letting fees are at landlords cost, except where the tenant breaks the lease before one third of the lease has expired. :eek:

All the hype about landlords being able to move bad tenants on seems exactly that, hype. It is still a slow and painful process, and even though the responsibility is on the tenant to register any objection with the tribunal the next paragraph states that they will be given another chance to register an objection anyway. :confused:

Abandoned goods. About time. If they leave their junk you can get rid of it immediately.

The no-grounds rules seem abit wierd. You need to give 90 days even if the lease has expired. However, if you have a reason say you want to renovate, then you need only give 60 days. If the tenant believes they are being picked on they can register a complaint within 4 weeks and the tribunal can prevent you from moving them on.

In a smiley mood tonight.

Andrew
 
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