New Changes for Tenants and Landlords
What you need to know about the new Act
On 27 August 2019, the Residential Tenancies Amendment Act came into force. This new Act has implications for both landlords and tenants in several ways:
Liability for Careless Damage in Rental Properties
The majority of the changes to the Act are in regards to the liability of the tenant for damage to the property. Now, the tenant:
Has no liability and cannot be required to pay for any destruction or damage to the property;
Is not required to compensate the landlord for any costs related to the destruction or damage to the property;
Will not be required to meet the costs of the damage or destruction of the property;
Is not required to carry out any work to repair any destruction or damage to the property; and
The tenant is not liable for any standard wear and tear to the property or chattels.
The tenant is liable if the landlord is able to prove that the damage or destruction to the property was:
Intentionally caused by the tenant, or tenants’ guests;
A result of illegal activity, such as making meth, which could result in a prison sentence; and/or
A result of an act or omission by the tenant or guest of the tenant.
The tenant’s liability is limited to the maximum of four weeks’ rent or the landlord’s insurance excess, whichever is the lower. This means that the landlord will have to cover the costs of repairing the damage if it exceeds the limit the tenant is required to pay.
Methamphetamine Contamination
Landlords are now able to test for methamphetamine (meth) and other contaminants, while the property is currently tenanted. The landlord is required to provide tenants with 48 hours’ notice before entering the property and are obligated to advise the tenant/s of the outcome of the testing.
For further information about properties affected by meth, click here.
Insurance
Landlords are now required to provide a statement regarding the property’s insurance information in the tenancy agreement, including the excess amount for any claims. If a landlord does not provide this information to the tenant, they may be liable for a $500 fine. Tenants with existing tenancy agreements may request this information from the landlord, and the information must be provided within a reasonable time frame.
Unlawful Property
Landlords are obliged to meet all legal requirements relating to buildings and health and safety that apply to the premises. Landlords must also ensure the property can legally be occupied at the beginning of the tenancy.
Landlords - you need to:
For existing tenancies, make sure the property meets the minimum standards including the Healthy Home Standards.
For all new tenancies, you must provide a statement in the tenancy agreement providing details about the property’s insurance.
If you would like further information about the changes to the Residential Tenancies Amendment Act, or if you have any other legal queries, please contact us.