Understanding Changes to the Residential Tenancies Act
As you might have heard, there are upcoming changes to the Residential Tenancies Act that have garnered attention in the media. However, it’s important to understand that these changes, while they may seem daunting at first glance, also bring several positive aspects for landlords and property investors. Let’s break down these changes:
Rent Bidding Ban
(Expected Implementation May: 2024). One of the changes coming into effect is the Rent Bidding Ban. This practice, although not used or encouraged in our approach to property management, is officially being barred. However, this ban doesn’t restrict tenants from offering higher rents voluntarily. It merely removes the pressure or expectation for them to do so, ensuring a fair and transparent process.
Retaliatory Action
(Expected Implementation: May 2024) Another significant change relates to retaliatory action by landlords or agents. This includes actions such as issuing breach notices, rent increases, termination actions, or non-renewal of tenancy agreements in response to tenants exercising their rights. Our stance remains clear: as long as tenants fulfil their lease obligations, we will guide you on reasonable rent increases and tenancy renewals, adhering to legal requirements and market standards.
12-Month Rent Reviews
(Expected Implementation: July 2024) Starting in July 2024, the frequency of rent increases will change from every six months to every twelve months. This adjustment necessitates a shift in strategy, emphasising the importance of commencing each lease at market value to optimise returns. For current fixed-term leases with predetermined rent increases, these will still be honoured until the lease’s end date in compliance with the requirements of the Act and the agreement.
Pets Welcome
(Expected Implementation: July 2024) Under the new regulations, tenants will generally have the right to keep pets with appropriate permissions and conditions. Landlords will have the ability to impose reasonable conditions and consideration to strata bylaws or property suitability will be observed in addition the pet bond will no longer be limited to fumigation only and will be able to be utilised to cover damages. This change reflects a more inclusive approach to rental agreements and long term tenancies.
Home Modifications
(Expected Implementation: July 2024) Minor modifications to rentals, like installing picture hooks, LED light bulbs, or child safety locks, will be permitted with landlord approval. This change aims to create a more personalised living space for tenants while ensuring the property’s integrity. The requirement for tenants to restore these modifications at the lease’s end provides clarity and reduces potential disputes.
Consumer Protection Commissioner Decisions
(Expected Implementation: July 2024) Streamlined dispute resolution processes through the Consumer Protection Commissioner will simplify matters related to pet permissions, property modifications, and bond release payments. This change aims to provide quicker and more efficient resolutions for both landlords and tenants.
In conclusion, while these changes bring adjustments, they also open avenues for better communication, fair practices, and streamlined processes within the rental market. Our team is fully prepared to navigate these changes and provide you with a professional, proactive approach to managing your investments, ensuring excellent results and peace of mind.
Should you have any questions or wish to discuss these changes further, please do not hesitate to reach out to us.
