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Reforms to NSW Residential Tenancy Laws

Reforms to NSW Residential Tenancy Laws. Residential Tenancies Act 2010 Residential Tenancies Regulation 2010. Background/Context of Change. existing laws drafted over 20 years ago 4 rounds of public consultation 2000 plus submissions received complete new Act passed in June 2010

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Reforms to NSW Residential Tenancy Laws

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  1. Reforms to NSW Residential Tenancy Laws Residential Tenancies Act 2010 Residential Tenancies Regulation 2010

  2. Background/Context of Change • existing laws drafted over 20 years ago • 4 rounds of public consultation • 2000 plus submissions received • complete new Act passed in June 2010 • more than 100 reforms

  3. NSW residential tenancy reforms • some changes put NSW in the lead with tenancy reform • other changes designed to make NSW laws consistent with other jurisdictions

  4. Disclosure to prospective tenants • new area of tenancy law • landlords/agents must disclose: • contracts for sale • mortgagee court action • material facts must not be withheld • For example, flood damage or violent crime affecting the property in the last 5 years

  5. Alterations • landlord’s consent still required • landlords must not ‘unreasonably’ refuse requests to add fixture or make ‘minor’ change • Act gives guidance as to what is ‘reasonable’ refusal - structural changes; - painting; - inconsistent with type of premises etc

  6. Ending a tenancy early • new optional ‘break fee’ • in first half of fixed period = 6 weeks rent • in second half of fixed period = 4 weeks rent • additional term in lease • negotiable break fee for longer term leases (3 years +)

  7. New termination grounds for tenants • Some grounds already in other jurisdictions: • accept social housing offer • need to move to nursing home/aged hostel • sale of premises without pre-disclosure • final AVO in shared household • death of tenant/co-tenant

  8. Added grounds for eviction • applications can be made immediately to Tribunal to end a tenancy if the tenant: • uses premises for illegal purpose; • threatens, abuses, intimidates or harasses landlord, agent, employees or contractors. • 14 days notice can be given to occupants left behind by vacating tenant.

  9. Lease preparation fee & bonds • NSW joining rest of Australia in: • abolishing lease preparation fee for tenants • abolishing higher bond for furnished properties • maximum bond – 4 weeks rent

  10. Sub-letting • NSW moving closer towards laws in other State’s and Territories • landlord’s consent still required • landlords must not ‘unreasonably’ refuse requests to partially sub-let or change names of co-tenants • Act gives guidance as to what is ‘reasonable’ refusal - if it would result in overcrowding; - if person listed on tenancy database etc

  11. Ending a tenancy – ‘no grounds’ • extension of minimum notice periods • 30 days notice to tenant at end of fixed term • 90 days notice to tenant once lease ended (used to be 60 days) • tenant can leave at any time after getting notice • guarantee of possession for landlord if notice served correctly

  12. National tenancy database laws • uniform provisions • developed in conjunction with all other States and Territories

  13. Where to from here? • Regulations being finalised • likely start date – late 2010/early 2011 • another review in 5 years time

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