Mona Vale Blog

LEGISLATION REFORMS: HOW THEY EFFECT YOU! (UPDATE)

Changes to the minimum standards to clarify fit for habitation

Under the new reforms, everytime a condition report is prepared for a property the following must be confirmed to be deemed as being fit for habitation:

The property must be structurally sound.
There must be ‘adequate’ natural and/or artificial light in each room (with the exception of storage rooms and garages)
There must be ‘adequate’ ventilation
The property must be supplied with electricity and/or gas, and must have ‘adequate’ electricity and/or gas outlets for lighting, heating, and appliances.
There must be ‘adequate’ plumbing & drainage
The property must be connected to a water supply service, or infrastructure for the supply of hot & cold water for drinking, washing, and cleaning.
The property must be equipped with bathroom facilities, including at least one toilet and washing facilities that allow user privacy.

Changes to rent increases

Under the new reforms, whilst rent increases during a lease period must be inserted into the lease as per the above. Once a lease expires and a tenant resides in a property 'out of lease', rental increases may only be made once in every 12 month term.

Changes to photography and videography in a tenanted property

As of the 23rd March 2020, it becomes legislation that should any photos or videos be taken of a property whilst it is tenanted, before publishing them online we must get the tenant's written consent to do so.

Changes to a tenant’s right to make changes/alterations of a ‘minor nature’ to the property

When the reforms to the legislation are enacted, whilst they are still required to get the landlord's consent, the landlord may not unreasonably withhold that consent. The legislation will also be expanded to encompass not just minor alterations, but also minor fixtures, and alterations. This terminology of course is quite ambiguous, so to assist us in defining what is a minor alteration, fixture, or renovation, they have described the below as examples:

Securing furniture to a non-tiled wall
Fitting child-proof latches to outdoor gates
Securing fly screens on windows
Installing or replacing internal window coverings
Installing cleats or cord guides to secure blind or curtain cords
Installing child-safety gates inside the property
Installing window safety devices for child safety
Installing hand-held showerheads or lever-style taps to assist elderly or disabled occupants
Installing or replacing hooks, nails, or screws for hanging paintings, picture frames, and other similar items
Installing a carriage service to connect a phone line or to access the internet and any associated facility or customer equipment
Planting vegetables, flowers, herbs, or shrubs (shrubs that don’t grow more than 2 meters) in the garden
Installing a wireless removable outdoor security camera
Applying shatter-resistant film to windows or glass doors

Changes to a landlord’s obligations around smoke alarms

Under new legislation maintenance, repairs, or replacements of fire alarms, hardwired or battery operated, must be carried out by an authorised electrician, and they must be maintained on an annual basis.

Changes to water & utilities charges

As of March 2020, non-payment of water usage, or other utility charges, may now result in a tenancy being terminated, in the same way non-payment of rent can. However, for an investor to charge water to their tenants, then the property must be separately metered and billed by Sydney Water, flow meters will no longer be accepted as a measure of an occupants usage. The property must also have no leaking taps or pipes, and there must be water efficiency measures in place, meaning a plumber will need to attend in between each tenancy to ensure that they have not been tampered with. Finally, by 2025, all toilets must be changed to dual-flush toilets with a minimum 3-star rating in accordance with The WELS scheme.

Changes to break-lease terms

Under the new reforms, all leases signed after the 23rd March will contain only the following break lease penalty: 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. Should a tenant be a victim of domestic violence, they may apply to terminate their tenancy without penalty. This may only occur however, if the necessary steps are taken.

For example, if a tenant is on a 12 month lease at $500 per week, then the increments are as follows:

If the tenant breaks their lease in the first 3 months, then they must pay a penalty of $2,000
If the tenant breaks their lease after 3 months have passed, but before they have reached 6 months, then they must pay a penalty of $1,500
If the tenant breaks their lease after 6 months have passed, but before they have reached 9 months, then they must pay a penalty of $1,000
And if the tenant breaks their lease after 9 months have passed, but before their lease has ended, then they must pay a penalty of $500

Changes to the definition of Material fact

Before a tenancy agreement is signed, a landlord or agent will need to advise the tenant if:

The property has been used for the manufacturing or cultivation of a prohibited drug or plant in the last two years
The property is in a strata scheme where scheduled rectification works or major repairs will be carried out during the fixed term of the agreement

The property is part of a building to which a:

Notice of intention to issue a fire safety order, or a a fire safety order has been issued requiring rectification of the building for external combustible cladding, or
Notice of intention to issue a building product rectification order, or a building product rectification order, has been issued requiring rectification of the building for external combustible cladding, or
Development application or complying certificate application has been lodged for the rectification of the building for external cladding.

In addition to that which is already prescribed.