NSW Quick Reference FOR SELF MANAGED LANDLORDS - Lynda Galway - RentEzy

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NSW Quick Reference
FOR SELF MANAGED LANDLORDS

Lynda Galway
OPEN4RENT® PTY LTD | RENTEZY®.COM.AU | AS AT 28 JANUARY 2020
RentEzy®.com.au
Contents
  General obligations as a landlord: .................................................................................................. 2
  Screening tenants: .......................................................................................................................... 2
  Safety responsibilities: .................................................................................................................... 2
  At the commencement of a tenancy agreement: ........................................................................... 3
  Rent payments: ............................................................................................................................... 4
  Serving notices: .............................................................................................................................. 4
  Entering premises: .......................................................................................................................... 4
  Repairs:........................................................................................................................................... 5
  Alterations to premises: .................................................................................................................. 5
  Property Inspections: ...................................................................................................................... 5
  New tenant inspections:.................................................................................................................. 5
  Prospective buyer’s inspections: .................................................................................................... 6
  Rent increases: ............................................................................................................................... 6
  Domestic violence (DV): ................................................................................................................. 6
  Abandonment or concern for tenants: ............................................................................................ 6
  NSW Civil and Administrative Tribunal (NCAT) orders: ................................................................. 7
  Natural disasters: ............................................................................................................................ 7
  Late rent payments: ........................................................................................................................ 7
  Terminating a tenancy agreement: ................................................................................................. 8
  Final inspection: .............................................................................................................................. 9
  Bond claims: ................................................................................................................................... 9
  Abandoned belongings ................................................................................................................... 9
  General disclaimer: ....................................................................................................................... 10

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General obligations as a landlord:
    Premises are clean and fit for human habitation
    Utilities including the supply of gas (if available), electricity, water, telecommunications
     services and other necessary services are accessible by the tenant without interference from
     the landlord
    Compliance with the health and safety statutory obligations for rental premises

Screening tenants:
    Ask questions during open inspections relating to:
          o   employment or income source
          o   current living arrangements (renting history)
          o   requirements for a rental home
          o   any pet requirements
          o   parking requirements
          o   number of people needed to sleep
    Do NOT ask questions relating to race, sex, pregnancy, marital status, disability, age,
     sexuality and gender identity
     https://www.fairtrading.nsw.gov.au/housing-and-property/renting/starting-a-
     tenancy/discrimination-when-renting
    The purpose of screening is to determine if potential tenants meet the following criteria:
          o   pay the rent on time for the duration of the tenancy agreement
          o   maintain the premises in a reasonably clean state
          o   ability to follow the laws for residential tenancies – not breach the tenancy agreement

Safety responsibilities:
    If premise is in a residential strata building, windows must have a maximum opening of 12.5
     cm and able to withstand the force of 250 newtons, and safety device child proof – window
     safety device requirements https://www.fairtrading.nsw.gov.au/housing-and-property/strata-
     and-community-living/strata-schemes/window-safety-device-requirements
    Swimming pools must meet the standards specified in the Swimming Pools Act 1992
     including a pool fence and child proof latch on the gate to enter the pool – see checklists for
     pools NSW Swimming Pool Register
     https://www.swimmingpoolregister.nsw.gov.au/checklists
    Smoke alarms required in rental premises:
          o   Hallway outside a bedroom
          o   Other suitable location in each storey
    Gas water heaters get serviced regularly by an approved service agent

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   Maintain and provide security devices and locks to make sure the premises are reasonably
    secure for the tenant(s)
   Tell tenants If rainwater tank is used as main source of drinking water and responsibilities for
    maintaining hygienic drinking water at the commencement of the tenancy – see NSW Health
    site https://www.health.nsw.gov.au/environment/water/Pages/rainwater.aspx

At the commencement of a tenancy agreement:
   Most agreements are fixed term for six months, 12 months or longer
   Add additional terms if applicable to the agreement, only allowed for break fees and pets,
    don’t add other terms without legal advice as they may be illegal and void the lease
    agreement
   Follow guidelines for deciding who pays utilities, services must be able to be individually
    metred to charge the tenant for services
   Give the tenant a copy of the current New tenant checklist
    https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0004/382126/FTR72_New_tenant_
    checklist.pdf
   Tenants and landlord sign the tenancy agreement
   Maximum bond to charge is equivalent to 4 weeks rent, you cannot ask tenants to pay
    additional bonds or bond top ups during the tenancy agreement
   You can allow the bond to be paid in instalments
   Give tenant details to lodge bond online or collect 4 weeks rent for bond and lodge with
    Rental Bonds Online
    https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0003/371694/Getting_started_with
    _rental_bonds_online_information_for_tenants.pdf
   If tenant is lodging bond, wait for evidence it is paid before signing the agreement
   Tenants receive a copy of the signed tenancy agreement
   Complete the condition report for the premises before the tenant moves in, complete the
    landlord’s section, take photos if required as evidence for any possible future disputes with
    the tenant
   Issue tenants with two (2) copies of the condition report with the landlord’s section filled in,
    asking tenants to complete the tenants section when they move in and return the completed
    condition report within seven (7) days
    https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0010/369946/Tenancy-condition-
    report.pdf
   Collect 2 weeks rent in advance
   You cannot collect other money from the tenant except 2 weeks rent in advance and 4
    weeks bond
   Receipt all money received and give a receipt to the tenant
   Make a list of the keys or photocopy keys and label, keep a copy and give a copy to the
    tenant/s
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   Give tenant a full set of keys to the premises
   File copies and original documents for the tenancy

Rent payments:
   Rent is set to be paid weekly, fortnightly or monthly in the tenancy agreement
   Tenant must be offered at least one way to pay that is available to them and where additional
    fees are not charged for making the rent payment
   Receipt all rent payments received during the tenancy agreement
   Never ask the tenant to be more than 2 weeks in advance with their rent
   Rent in advanced is used as the first two weeks rent for the rental premises
   Do not apply the rent to anything else e.g. bond or damages
   Keep a ledger of rent payments, check weekly to ensure you are immediately aware of any
    late payments

Serving notices:
   Notices are used to communicate with the tenant during the tenancy
   Warning unwanted contact from the landlord is considered an invasion of the tenants right to
    quiet enjoyment
   For each notice look up the required time for the notice
   Use the correct form for the notice or write the notice including all the required information
   Address the notice correctly to the tenant/s
   Keep a copy of the notice, documenting how it was served and the date it was served
   If mailing allow an extra seven (7) days notice
   Count the days after the day the notice is served including weekend days
   A notice can be served by:
          o   handing it to the tenant
          o   handing it to a person 16 years or older who lives at the premises with the tenant
          o   putting it in the letterbox at the premises
          o   posting it to the tenant
          o   emailing it to the tenant

Entering premises:
   Depending on the reason for entry appropriate notice must be provided
   Usually access should be on a weekday or Saturday, not Sunday or public holidays
   Schedule inspections or entry between the hours of 8 am to 8 pm

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   Approximate time of entry should be provided to the tenant
   Visitors who are not the agent or landlord need written consent to enter the property
   These rules may not apply in case of an emergency or urgent repair

Repairs:
   Give two (2) days’ notice to carry out ordinary (non-urgent) repairs or general maintenance
   No notice required for urgent repairs or an emergency
   Give two (2) days’ notice to inspect smoke alarms in order to comply with relevant health and
    safety obligations

Alterations to premises:
   Tenants are required to ask for a landlord’s permission before making any alterations
    including:
           o   changing locks (unless an emergency or tribunal order, co-tenancy or DV situation)
           o   minor alterations
           o   painting
           o   connecting NBN
           o   phone line installation
           o   garden beds
           o   accessibility features
           o   additional security features
           o   safety devices for children
           o   picture hooks
   Landlords can apply to NCAT for the cost of rectifying any alterations the tenant/s did to the
    rental premises without permission, to an unsatisfactory standard or will affect future rents.

Property Inspections:
   Schedule up to four (4) inspections each year
   Give seven (7) days written notice
   Use a checklist when you do the inspection, so you don’t miss anything
   Leave your card on the kitchen bench if the tenant isn’t home during the inspection

New tenant inspections:
   Give current tenants reasonable notice for each inspection, must be within the last 14 days
    before the current tenancy is due to end

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Prospective buyer’s inspections:
   Give tenants two (2) weeks’ notice before the first inspection
   Come to an agreement with tenants after first inspection about suitable time frames for
    inspections
   Limit inspections to a maximum of 2 per week with 48 hours’ notice

Rent increases:
   60 days’ written notice required identifying
          o   new rent amount
          o   date increase commences
          o   signed, dated and addressed to the tenant
   Add 7 days for delivery if sending via mail
   Depends on length of the lease e.g. 2 years, must be fixed term, and wording in the tenancy
    agreement
   Only one rent increase in 12 months
   Tenant can give 21 days’ notice to terminate the lease after notice of rent increase is given
   Sample rent increase notice
    https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0005/369977/Notice-of-rent-
    increase.pdf

Domestic violence (DV):
   Tenant gives you written notice – Domestic Violence Rental Termination Notice for Landlords
   Victim is not obliged to pay any compensation or additional money
   Co-tenants who are not the perpetrator of DV have rights:
          o   they can request to end the tenancy through NCAT
          o   they are entitled to only pay their share of the rent for two weeks
          o   can dispute the validity of a DV termination notice from a co-tenant
   If perpetrator has AVO that excludes them from the premises, the tenancy agreement
    transfers to the co-tenant(s) on the agreement
   You will have to go to NCAT if you disagree with the transfer of tenancy for the agreement
   A tenant can change the locks of the premises for safety reasons without the landlord’s
    consent conditional on supplying a new set of the keys to the landlord within seven (7) days

Abandonment or concern for tenants:
   No notice is required if you have tried to contact the current tenants and have not been able
    to and you have reasonable cause for serious concern for their health and safety or other
    occupants or you think the premises have been abandoned

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   See NSW Civil and Administrative Tribunal orders (below)

NSW Civil and Administrative Tribunal (NCAT) orders:
   Landlords can go to NCAT to resolve tenancy disputes for any of the following reasons:
          o   abandonment of premises
          o   access to premises
          o   alterations and additions to residential premises
          o   general orders – breaches to agreement, damages, compensation etc.
          o   goods left in premises
          o   occupation fee
          o   pre-agreement matters and residential tenancy agreements
          o   rental and other payments
          o   rental bonds
          o   security and safety of premises
          o   termination of residential tenancy agreements
   Follow the orders of NCAT
   Tenancy application form for disputes
    https://www.ncat.nsw.gov.au/Documents/ccd_form_tenancy_application.pdf

Natural disasters:
   Disclose to prospective tenants if rental property was previously in a natural disaster in the
    past five years (e.g. flood or bushfire)
   Premises destroyed or uninhabitable either:
          o   mutually agree to end the tenancy
          o   give termination notice in writing
   Premises partially destroyed or uninhabitable
          o   tenant wants to stay – get urgent repairs done, offer reduced rent
          o   unsafe for tenant to stay – tenant moves out temporarily, don’t charge rent while
              repairs are implemented and tenant is not able to live in the rental, tenant pays for
              temporary accommodation
          o   tenancy agreement can be ended and a new agreement signed after repairs are
              completed

Late rent payments:
   Monitor accounts regularly so you are aware of late payment as soon as possible
   Send tenant a reminder notice (email if allowed/written letter) or call

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   Explore and discuss alternative payment strategies with the tenant, for example, credit card
    or direct bill-paying service with Centrelink
   When rent is 14 days overdue, give a written termination notice, signed and dated, to the
    tenant giving them 14 days to vacate the property
   Sample termination notice
    https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0006/369978/Notice-to-terminate-
    tenancy-agreement-landlord-agent.pdf
   Apply to NCAT within immediately or within 30 days of the termination date or you will need
    to apply for an extension – complete the Application and possession for non-payment of rent
    form
    https://www.ncat.nsw.gov.au/Documents/ccd_form_termination_and_possession_application
    .pdf
   A written repayment plan can be implemented and agreed to by you and the tenant for any
    outstanding rent

Terminating a tenancy agreement:
   You or the tenant must give notice of the termination adhering to the notice requirements
   Landlord minimum notice to tenants:
          o   14 days if tenant is 14 days or more behind with the rent or other breach of the
              tenancy agreement
          o   30 days if the end of a fixed term agreement and you have decided not to renew it
          o   30 days if the rental property is being sold after the fixed term agreement has ended
              and the landlord/owner requires vacant possession for the sales contract
          o   90 days if the fixed term period has expired and not new agreement was signed
   Termination notice must be in writing, signed and dated by the person terminating the lease,
    properly addressed to the other party, state the date the lease terminates, and the tenant will
    vacate and if appropriate give the grounds for termination
   Sample termination notice issued by landlord
    https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0006/369978/Notice-to-terminate-
    tenancy-agreement-landlord-agent.pdf
   The termination notice must be served correctly
   Reasons for terminating the lease must be legal
   No notice is required if:
          o   the rental premises have been destroyed and are uninhabitable (partly or wholly)
          o   legal reasons, can’t be used as a residence anymore
          o   death of a sole tenant

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Final inspection:
    Conduct a final inspection with the tenant before the tenant leaves the premises at an agreed
     time. Give appropriate notice.
    Complete a condition report for the end of the tenancy, give a signed copy to the tenant
    Identify any issues with the cleanliness or damage done to the rental property
    Refer to the entry condition report if required during discussions with the tenant
    Allow for fair wear and tear, the tenant is only liable for intentional, neglectful and
     irresponsible damage caused to the premises
    Use the final condition report as evidence for any claims on the bonds or future NCAT
     actions

Bond claims:
    Claims on bond can be made for
           o   unpaid rent
           o   unpaid bills associated with the premises e.g. water bills
           o   break fee or other compensation for early break of lease
           o   keys not returned
           o   unrepaired damage to the premises which is not fair wear and tear
    Use rental bonds online to make a claim on the bond if required
    Notify tenant of claim on bond, providing a copy of the exit condition report
    Go to Rental Bonds Online to make a claim on the bond. If the tenant makes a claim for the
     bond, then you may have to go to NCAT to get orders to be paid the bond.

Abandoned belongings
    Only after the tenancy has ended are any remaining possessions of the tenant’s considered
     to be abandoned
    Attempt to notify the former tenant to collect their items of value within 14 days explaining an
     occupation fee may apply (equal to one day’s rent) for each day the items are stored if it
     prevents the premises being rented (maximum of 14 days can be charged)
    Throw away any rubbish and perishable items
    Store for 14 days items of value, e.g. furniture, appliances
    Dispose of unclaimed items after 14 days – donate to charity, take to the tip, keep on
     premises if appropriate for next tenancy agreement, sell the goods and give tenant money
     from the sale of goods or send it to the Revenue NSW
    Goods must be returned if the former tenant comes to claim their possessions
    Keep the former tenant’s personal documents for at least 90 days, including official
     documents, photos, financial information, licences and educational documents

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    Shred personal documents after 90 days or return to the issuing authority

General disclaimer:
Information is accurate as at 24 January 2020 and sourced from Fair Trading NSW
https://www.fairtrading.nsw.gov.au/. Open4rent Pty Ltd is not responsible for any omissions or lack
of detail in the information. The user of this information understands this document is a checklist,
summary version of key information relating to residential tenancies.
This document is only intended to be used as a checklist of information and not a detailed document
of rules or guidelines. See the current legislation for residential tenancies, the Residential Tenancies
Act 2010 No 42 https://www.legislation.nsw.gov.au/#/view/act/2010/42
New residential tenancies legislation is being introduced in NSW in March 2020. This document will
be considered out of date at the commencement of the new legislation. We will update this
document after the new legislation is implemented and it will be the users responsibility to download
the latest version from RentEzy.com.au.
Written by Lynda Galway for RentEzy®.com.au, owned by Open4rent Pty Ltd on 24 January 2020.

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