REAL estate agents in the Central West are concerned about new tenancy laws passed by the NSW Parliament last week.
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The NSW Government says the Residential Tenancies Amendment (Review) Bill 2018 is designed to protect the interests of tenants and landlords.
“With more than 30 per cent of the NSW population now renting, the amendments are both timely and critical as demand for quality rental properties continues to grow,” it said in a statement.
According to the NSW Government, the amendments will allow victims of domestic violence to terminate their tenancies immediately and without penalty.
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The new amendment also prohibits landlords and their agents from listing a victim of domestic violence on the tenancy database.
Raine and Horne Bathurst director, Matt Clifton, said they are waiting for more clarity from the NSW Government.
“It is a welcome move that domestic violence victims can terminate their tenancies,” he said.
“But it is not clear who will pay in case there is damage to a property. Victims can’t be held accountable.
“The government needs to make it clear whether an insurance company or tenants would pay in case of damages.”
Mr Clifton welcomed the seven requirements set by the government before a property is put up for rent.
These are:
- Structurally sound
- Adequate natural or artificial lighting in each room, except storage rooms or garages
- Adequate ventilation
- Supplied with electricity or gas and with adequate electricity or gas outlets for lighting, heating and appliances
- Adequate plumbing and drainage
- Connected to a water supply service or infrastructure for the supply of hot and cold water for drinking, washing and cleaning
- Contains bathroom facilities, including toilet and washing facilities, which allows user privacy
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Real estate agents, however, were concerned about the law that says landlords can only increase rents once every 12 months.
Bob Berry, the Dubbo-based veteran real estate agent, said the change was not necessary.
“There is absolutely no need for the government to intervene in a free market by saying that the owner could only increase the rent once in every 12 months,” he said.
“This is a minister [Better Regulation Minister Matt Kean] who is just playing politics and appealing to that base [tenant].
“It is appropriate that the government has laws and legislation that protect tenants and anybody else, which they have already in the Residential Tenancies Act, relating to unfair rent increases.
“The minister doesn’t know how the entire NSW market works. Rates in Sydney are different from those in Dubbo, Orange and Bathurst.
“As licensed real estate agents, we act in the interests of our clients, the owner. The owners are entitled to market rents.”
He said the move may result in property investors leaving the market as now rents are pegged to annual increases.
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Among the other amendments, the NSW Government has fixed the fees for breaking a fixed-term lease early.
The NSW Government made it clear through the amendments 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,” it said.
The NSW Government would be providing a new definition for separately metered premises to reduce disputes between tenants and landlords about who pays for electricity, gas or water usage charges.
It is also 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.
The NSW Government said it will notify the implementation date after holding discussions with all stakeholders.