Real Estate Reforms
Written on the 22 March 2020
The Property Industry Reforms and changes to the residential tenancies legislation come into effect on 23 March 2020. See below points on how this may affect your investment property. Fair Trading have finalised the new Residential Tenancy prescribed forms to accompany the updated Residential Tenancy Act and Regulations.
Current tenancy agreements will be exempt whether they are in fixed term or in periodic agreement however not all existing agreement clauses will be carried through. Some of the changes will not apply to existing agreements entered into before 23 March 2020. For example:
new mandatory break lease fees only apply to new fixed-term agreements that are 3 years or less
From 23 March 2020, it will be easier for tenants to make a rented property feel like home by installing fixtures or making alterations, additions or renovations that are minor.Tenants are currently allowed to install fixtures or make alterations, additions or renovations if they have the landlord's written consent, or if the residential tenancy agreement permits it. If the tenant's request is of a 'minor nature', the landlord must not unreasonably refuse or place conditions on the consent. The tenant is responsible for paying for the fixture they install, or for any alteration, addition or renovation they make.
The new laws will specify the kinds of fixtures or alterations, additions or renovations that are minor where it would be unreasonable for the landlord to say no. Some of these are:
securing furniture to a non-tiled wall for safety reasons
The changes don't apply if a property is listed on the loose-fill asbestos insulation register, or if the property is a heritage item.
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