A brief outline of most of the amendments (details taken from the Fair Trading NSW website):

The NSW Government is remaking the Residential Tenancies Regulation 2010 (current Regulation) to progress the recent reforms to the residential tenancy laws, which aim to improve the renting experience in NSW.

The reforms include:

Protections for domestic violence victims

Tenants who need to escape a violent partner will be able to terminate their tenancy immediately and without penalty in circumstances of domestic violence.

Tenants who are victims or a co-tenant who is not the perpetrator will not be held accountable for property damage that occurred during a domestic violence incident.

Landlords and their agents will also be prohibited from listing a victim of domestic violence on a tenancy database if they terminated their tenancy in circumstances of domestic violence.

Minimum standards

Rented properties will have to meet 7 minimum standards at the start of a tenancy to be fit for habitation. These are baseline standards and are not an exhaustive list of whether a property is fit for habitation.

These are:

1. Structurally sound property
2. Adequate natural or artificial lighting in each room, except storage rooms or garages
3. Adequate ventilation
4. Supplied with electricity or gas and have adequate electricity or gas outlets for lighting, heating and appliances
5. Adequate plumbing and drainage
6. Connected to a water supply service or infrastructure for the supply of hot and cold water for drinking, washing and cleaning
7. Contains bathroom facilities, including toilet and washing facilities, which allows user privacy.

These standards must be maintained throughout the tenancy (by way of repairs).

Rectification orders

NSW Fair Trading will have new powers to resolve disputes between tenants and landlords over repairs and maintenance and property damage caused by tenants. This will include the ability to issue rectification orders.

Rent increases

The reforms will help reduce tenants’ fear of retaliatory rent increases by limiting them to once every 12 months for periodic leases.

Other changes

• expanding the list of material facts that landlords or their agents must not knowingly conceal from a prospective tenant to include drug crimes
• establishing a list of minor alterations that a tenant can carry out, where it would be unreasonable for a landlord to withhold consent, and specifying which alterations may be carried out by a qualified person
• providing mandatory terms that cannot be modified or excluded from fixed-term tenancy agreements of 20 years or more
• increasing the limit on the monetary jurisdiction of the NSW Civil and Administrative Tribunal
• providing an option for a 5-year fixed term in the standard form of agreement to encourage landlords and tenants to consider longer term leases
• updating the standard form of residential tenancy agreement and condition report

• expanding the list of offences under the Act for which penalty notices may be issued and increasing the penalty amount that may be imposed
• introducing mandatory set fees for breaking a fixed-term lease early. The break fee will apply to all new fixed-term leases that are 3 years or less that are entered into after the new laws start. The break fees are:
  • 4 weeks’ rent if 75% or more of the lease remains
  • 3 weeks’ rent if between 50% and 75% of the lease remains
  • 2 weeks’ rent if between 25% and 50% of the lease remains
  • 1 week’s rent if 25% or less of the lease remains
• making it easier for tenants to get repair orders from the NSW Civil and Administrative Tribunal
• providing that only landlords can carry out repairs to smoke alarms, except for certain kinds of smoke alarms and repairs. A penalty will apply for landlords who fail to repair a smoke alarm
• a new definition for separately metred premises to reduce disputes between tenants and landlords about who pays for electricity, gas or water usage charges
• clarifying the rules around taking photos and videos during inspections and publishing them to advertise the property for sale or re-lease, especially where the tenant’s possessions are visible
• stopping tenancy database operators from charging tenants to access their own personal information held on the database
• introducing a penalty to the landlord or agent if they do not provide a tenant with a property condition report at the start of the tenancy.
• simplifying clauses to make it easier to read and to improve consistency.

When will the new laws start?

The start date will consider the time landlords, tenants and agents need to comply with the new requirements.

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

The final start date for the new laws will be confirmed in the near future.

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 if you are 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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