Recent changes to tenancy legislation

From 1 July, 2009, the current Residential Tenancies Act was replaced by the Residential Tenancies and Rooming Accommodation Act. Some of the key changes include:

• Rents must be advertised at a stated fixed price - and one consequence of failing to do so is losing the right to accept a bond from a tenant subsequently obtained
• Tenants must be given a copy of the full tenancy agreement before asking them to sign anything that includes wording that commits them to a tenancy or pay any money in relation to the tenancy
• The new Act makes it clearer that agents/lesors cannot ask prospective tenants to pay amounts called application fees, application deposits, or any other creatively named amounts that are not specifically described in the Act
• If a property is placed on the market within the first two months of a tenancy, a tenant will have the right to end the tenancy with 2 weeks notice - Does not apply if they were given written notification that the property was for sale before entering into the tenancy
• There will be restrictions that have some impact on the marketing of a property for sale or rent during a tenancy, such as requiring tenant's written consent before using photographs in advertising where these might show the tenants' belongings, and requiring the tenants' written consent before conducting open for inspections. - Currently there are no restrictions in this regard
• Before entering into a tenancy agreement that states a tenant will pay rent via rent card/BPay etc, the tenant must be given written information offering two alternative options from the list of named payment methods in the Act, as well as information about any and all associated costs of using rent cards/BPay (etc)
• If it is agreed a tenant will pay rent via electronic methods of payment, the inevitable time lag between when they pay the rent and when the lessor/agent receives it to their bank account, must be allowed for when considering whether arrears exists or not
• Rent will not be able to be increased (for the same tenant) more than once in any six month period - Currently there is no limit on how often rent can be increased as long as notice periods prescribed in the Act are complied with
• Rent increases will all require two months notice
• Existing tenants will have additional rights to object to significant changes in a new agreement when renewing their tenancies
• Notice will be able to be given to enter a property to check a completed repair or to check a breach has been remedied - Currently there are no such provisions and entry for these reasons has depended on the tenant’s cooperation
• Entry to the property will not be able to be gained on a Sunday or public holiday unless the tenant agrees, and can only occur between 8am and 6pm on other days (with correct notice) unless the tenant agrees- Currently there are no specific restrictions other than a requirement to be reasonable
• For lessor and agent inspections, entry notices will have to state an intended entry timeframe that is no longer than a two hour range - Currently some agents issue entry notices stating a broad intention to enter between 9am and 5pm
• Longer notice will be required to end a fixed term tenancy - Currently a tenant is entitled to 14 days written notice before their agreement ends if they are being required to vacate, but after July a 2 month written notice period will be required
• The current forms will change slightly
• The RTA will have powers to issue on the spot infringement notices and fines to parties who breach the legislation

Legislation that impacts on real estate sales and property management is subject to regular review and amendment, making it essential to only trust your property to a managing agent who ensures their knowledge is current.