With the aim of improving the rental experience in NSW, the draft Residential Tenancies Regulation 2019 (NSW) has recently been open for Public consultation.

The proposed amendments put forward, which still may change, will have an impact, some more than others depending on the type of investment property you have.

Recommendations include new minimum standards and giving NSW Fair Trading new powers to resolve disputes between tenants and landlords.

There are also some recommendations to the standard form of agreement regarding taking photographs or visual recordings for advertising purposes, which may include tenants’ possessions, and also some changes to the conditions report.

Of particular note for some landlords will be the separately metred premises amendment; this will affect properties with two or more dwellings, such as a property with a granny flat. Under the proposed amendments, all properties will need to receive their own utility bills and hence will need to have individual water, gas and electric metres.

Many properties with granny flats just have a single Hunter Water Board metre serving them all and the water bill is split accordingly. Under the proposed legislation, you MUST have a separate water metre or you will no longer charge for water usage when the new legislation comes in.

Unfortunately, at this time Hunter Water Board will not read multiple metres on …… property or supply separate billing unlike an electricity company. The same applies to gas connections as well, and unfortunately we are going to have to include these services in the rent where possible.

While we’re on the subject of water, for all properties, in order to charge a tenant water usage, prescribed water efficiency measures are required, such as no leaking taps at the start of the tenancy and showerheads meeting water efficiency standards.

In other areas, tenants must be aware of all ‘material facts’ about the property, such as whether it has flooded within the past 5 years or if a crime has taken place in the premises.

Tenants will be entitled to reimbursement under repairs for a smoke alarm (such as fitting a new battery to a non-hardwired smoke alarm) and tenants are entitled for minor alterations to the property such as securing furniture to the wall, fitting fly screens and fitting childproof locks to an exterior gate.

If you want to find out more about this legislation, and download the documents to the amendments in full, visit https://www.fairtrading.nsw.gov.au/consultation-tool/residential-tenancies-regulation-2019.

The final changes for the new Act are going to be finalised in the coming months and we will keep you updated.

As always, please get in touch with our experienced team if you have any concerns about the new legislation and how it could affect you, or would be interested to find out more. Simply give us a ring on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office for a chat.

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