What are the minimum standards for a rental property?
While a property doesn’t have to be in ‘perfect’ condition to be rented out (although ideally it should be to maximise rental income), all residential properties are required to meet required minimum standards to ensure they are ‘fit for habitation’; anything less, and the property cannot be rented out.
Everyone has a right to live in a safe and secure property, and the minimum standards are in place to ensure safety and security for both tenants and landlords, and enhance the quality of rental housing.
What are the minimum standards?
The absolute minimum standard for a rental property is that it must be ‘fit for habitation’.
Under Section 52(1A) of the Residential Tenancies Act 2010 (NSW), there are seven minimum standards that must be met for all rental premises:
- Be structurally sound
- Have adequate lighting, either natural or artificial (except in storage rooms or garages)
- Have adequate ventilation
- Be supplied with electricity or gas with an adequate number of outlets for lighting and heating, and for the use of appliance
- Have adequate plumbing and drainage
- Be connected to a water supply service or have infrastructure that’s able to supply hot and cold water for drinking, washing and cleaning
- Contain bathroom facilities that allow for privacy, including toilet and washing facilities.
To clarify the requirement of being “structurally sound”, section 52(1B) sets out that floors, ceilings, walls, supporting structures (including foundations), doors, windows, roof, stairs, balconies, balustrades and railings must:
- Be in a reasonable state of repair
- With respect to floors, ceilings, walls and supporting structures, not be subject to significant dampness
- With respect to the roof, ceilings and windows, not allow water penetration into the premises
- Not be liable to collapse because they are rotten or otherwise defective.
- Complying with the legislation
Other legislation
There is actually quite a list of building-related issues in place to ensure your tenant is safe. For instance, smoke alarms installed in the rented property must be in working order, and properties with pools must have certificates of compliance.
Of course, there are penalties applied to landlords who fail to comply; not being aware of the legislation is not an option. For more information, visit Fair Trading NSW website for a detailed list of tenancy laws.
What happens if the property doesn’t meet minimum standards?
If a property does not meet minimum standards before or on the date a tenant moves in, tenants can end their lease before moving in or they can request an urgent repair.
Landlords also need to consider the impact of not meeting minimum standards on their insurance; if the property doesn’t meet the required building, health and safety standards, it can mean a reduced pay-out or denial of an insurance claim.
For instance, if a person injures themselves from falling into a pool that is not fenced in line with regulations, the liability claim is likely to get knocked back by an insurer because safeguards were not in place to maintain the property and keep the tenant safe.
Using a property manager keeps you legal
Property legislation and regulations are in place to protect both the landlord and the tenant, and there needs to be a clear understanding of what is expected by both parties. This is why our team regularly attend industry training sessions so we are on top of the latest legislation and regulation.
From smoke alarms requirements and pool safety to discrimination and animals, we ensure all our properties adhere to the law and we act within the law. If we are uncertain about any aspect of the ‘fit for habitation’ or ‘structurally sound’ legislation we always seek professional advice from structural and engineering experts.
Our motto is very simple – we treat every property entrusted into our care as if it’s one of our own.
With many of our team having investment properties themselves, we always go the extra mile.
Get in touch with us now, and we tell you how our property management services can make your life easier, and offer tips to increase your return on investment.
With nearly 50 years of property management experience behind us, we’ve helped thousands of people realise their dreams through property and our aim is to make your life easier. 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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