The NSW Department of Fair Trading has announced sweeping changes to the current NSW Residential Tenancy Laws commencing 23 March 2020. These changes aim to improve the renting experience of Tenants whilst also ensuring Landlords are still able to effectively manage their properties.
As the peaks and troughs of the property market continue, rentals are becoming increasingly popular. Thus, it is important that Tenants and Landlords alike understand these changes as well as how they may affect their rental experience. The key changes are as follows:
Minimum Standards to Clarify ‘Fit for Habitation’
Currently, Landlords are required to provide a property ‘fit for habitation’. This is largely ambiguous and can often cause disputes to arise. The changes have now introduced seven habitation requirements to clear up this ambiguity. The property must therefore:
- Be structurally sound;
- Have adequate natural or artificial lighting in each room, except storage rooms or garages;
- Have adequate ventilation;
- Be supplied with electricity or gas and has adequate electricity or gas outlets for lighting, heating and appliances;
- Have adequate plumbing and drainage;
- Be connected to a water supply service or infrastructure for the supply of hot and cold water for drinking, washing and cleaning; and
- Contain bathroom facilities, including toilet and washing facilities, which allow user privacy.
As of 23 March 2020 all NSW Landlords must ensure that their properties meet these minimum requirements.
Smoke alarm obligations on Landlords
NSW Landlords will now need to ensure that smoke alarms installed in the rented property are in working order. Those who do not comply may be exposed to penalties if they are. Further to this, the new regulations, introduced on the same date have extended the Landlords powers to include entering the property without consent to inspect or assess smoke alarms for repair, provide that reasonable notice has been given to the Tenant.
Minor Alterations
Tenants can now make “minor alterations” to the Premises, without the consent of the Landlord. The list of ‘minor’ alterations outlined in the regulations is quite extensive and includes some of the following examples:
- securing furniture to a non-tiled wall for safety reasons
- fitting a childproof latch to an outdoor gate of a single dwelling
- inserting fly screens on windows
- installing or replacing an internal window covering (i.e. curtains)
- installing window cord cleats or cord guides to secure blinds or curtain cords
- installing child safety gates inside the property
- installing window safety devices for child safety
Mandatory Set Break Fees
From the commencement of the New Residential Tenancy Laws, Tenants who prematurely break a fixed term agreement that is three years or less will be liable to pay a set break fee. These are outlined as follows
- 4 weeks rent if less than 25% of the lease had expired
- 3 weeks rent if 25% or more but less than 50% of the lease had expired
- 2 weeks rent if 50% or more but less than 75% of the lease had expired
- 1 week’s rent if 75% or more of the lease had expired.
The full list of changes to the Residential Tenancy Laws is outlined on the NSW Fair Trading Website. Whilst these changes are extensive, they should not deter anyone from letting their property or entering a lease as they do work in favor of both landlords and Tenants.
If you have any queries in relation to the information above, are considering letting your property or entering into a lease, please do not hesitate to contact Wade Thomas on wthomas@marsdens.net.au or Ben Wong on bwong@marsdens.net.au or by phoning (02) 4626 5077 for a confidential discussion.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.
