Rental Reform !

New South Wales rental reform laws will come into effect on February 28.  Rent price increases will be limited to once in each twelve month period and there will be control measures which will set the expectation which rented promises must meet and these include access to adequate electricity and plumbing.  All too often existing premises are illegally subdivided with the result that the portion let lacks either a kitchen or a bathroom, and in some cases - both !

These new laws also take a more open approach to tenants putting their individual touch to what is their " home " for the period of the lease.  Lease conditions that prevent pictures to be hung on walls and the use of curtains to screen windows have been outlawed.   The ban on keeping pets of any kind has also been lifted.

Rented premises must meet acceptable living standards and the fees that can be charged for breaking a fixed term lease will now need to meet guidelines.  What this law change has greatly improved is the terms that will apply when a tenant needs to break a lease because of domestic violence.

In the past, should a women need to vacate rented premises to escape domestic violence she was often responsible for any damage caused by her partner and if the lease was in her name she could be put on the bad renters list and denied other rental opportunities.   In many cases, such women were sometimes forced to adopt the homeless situation of living on the streets.

The changes mean a domestic violence victim can break a lease immediately without penalty if they have either a AVO in place or a statutory declaration from a doctor.  Such victims are also protected from being listed on a data base by agents or landlords where a debt or property damage is caused by a violent partner.

All this is part of the reforms that better balance the needs of both tenants and landlords.  Work is in progress to improve the speedy availability of bond money when a lease ends and when a new lease on a different property is being negotiated.

This bond is a surety held against property damage occurring during the lease or the tenant absconding with rent owing.  Because the property needs to be inspected and clearance given the outgoing tenant is often expected to provide the money for a new bond up front and this can be a financial hazard.

The letting agent would surely know if the rent is up to date and the industry is looking at the issue of a partial bond certificate prior to the damage inspection.  This would remove the cumbersome method of a cheque issued by the Rental Bond Board being received by the real estate agent and cash handed to the outgoing tenant.   The paper certificate would serve as the payment passing between the two landlord agents.

There is no doubt some landlords are avaricious and some tenants are both indifferent with care of the property and slow to pay the rent on time.  This government legislation is intended to sort out the differences and grant equity to both sides.