The new Residential Tenancies Regulations are scheduled to come into effect on the 29th of March. To help keep our Rental Providers informed, we have collated a list of key changes outlined below.

1. Terminology

The terminology for residential tenancies has been updated, and the following key terms have changed:

• Renters – currently called Tenants
• Rental Providers – currently called Landlords
• Rental Agreements – currently called tenancy agreements or lease agreements

2. Prescribed Rental Minimum Standards

Rental Providers will be required to ensure that the rental property complies with Prescribed Rental Minimum Standards. The prescribed minimum standards include basic, yet critical, requirements relating to amenity, safety, and privacy, such as but not limited to:

• Locks / Keys
  
  i. All external doors to the rented premises which are not able to be secured with a functioning deadlock, other than any screen door attached to an external door, must be fitted with a locking device that -
  
  a) Is operated by a key from the outside; and
  b) May be unlocked from the inside with or without a key.
  
  ii. All external windows in the rented premises capable of opening must have a functioning latch to secure the window against external entry.
  
  iii. The residential rental provider must provide, free of charge, a set of keys or another security device (e.g., access to an apartment building's car park) to each renter listed on the residential rental agreement.
  
  
• Window coverings

Each window in a room at the rented premises that is likely to be used as a bedroom or a living area must be fitted with a curtain or blind that can be opened and closed by the renter.

• Mould & Dampness

Each room in the rented premises must be free from mould and damp caused by or related to the building structure.

• Heating

A fixed energy-efficient heater (with a 2 star or above energy rating) in good working order is to be installed in the rented premises' main living area.

• Electrical Safety

All power outlets and lighting circuits in the rented premises are to be connected to a switchboard type circuit breaker that complies with AS/NZS 3000 electrical standards.

3. Prescribed requirements when leasing

• The rental provider is required to ensure that the rented property meets the minimum rental standards.
• The rental provider must not unlawfully discriminate against another person by refusing an application based on an attribute set out in the Equal Opportunity Act 2010.

Before entering into a residential rental agreement, the Rental Provider must disclose specific information, including:

a) any ongoing proposal to sell the property
b) any ongoing mortgagee action to possess the property
c) that the Rental Provider has the legal right to let the property
d) details of any embedded electricity network
e) any other prescribed information concerning the rented premises (as per section 30D (e) of the new RTA legislation).

4. Bonds

Bonds cannot exceed one month's rent unless the rent exceeds $900 per week.

5. Modifications by Renters in rental properties

Modifications that can be made without the Rental Providers consent will include -

• Installation of picture hooks, screws, wall mounts, shelves
• Installation of LED light globes that do not require new light fittings
• Installation of removable safety measures (sensor lights, cameras, alarms) if they do not need to be hardwired into the property, and if they do not interfere with the privacy of neighbours.

Modifications for which the Rental Provider must not unreasonably refuse consent include -

• Painting of the rented premises
• Securing external gates
• Installation of child safety gates or wall anchors to secure items of furniture on exposed brick or concrete walls
• Installation of flyscreens on doors or windows
• Installation of a vegetable garden, installation of a secure letterbox

Our team are here to answer any questions you may have about the Residential Tenancies Act reforms.

6. Electrical and gas safety compliance checks

Rental Providers will be required to complete electrical and gas safety compliance checks every two years by a licenced or registered electrician and/or plumber and provide the renter with details of the most recent safety check-in writing upon request.

7. Urgent Repairs

The limit for urgent repairs will increase from $1,800 to $2,500 inc GST.

8. Rent Increases

• New amendments have already come into force with rent increases being limited to once every 12 months
• The issuing of rent increases will resume when the COVID-19 legislation amendments are repealed at the end of March 2021
• All rent increase notices will have to supply the method and/or reason (E.g., Market Increase, Consumer Price Index, Comparable Properties) for the increase to be justified.

9. Compensation for sales inspections:

Renters will be entitled to financial compensation for inspections during a property sales campaign. The prescribed compensation for each sales inspection is the higher amount of -

a) One half of the daily amount of rent payable under the residential rental agreement; or
b) $30

10. Ending a tenancy:

A rental provider can only give a notice to vacate for certain reasons (providing the renters are not on a fixed lease, the termination date must be on or after the end of the fixed lease):

• Repairs or renovations
• Demolition
• Change of use of premises
• Occupation by the rental provider or their family
• The premises are to be sold
• The premises are required for a public purpose
• The renter no longer meets the eligibility criteria

The Residential Tenancies Act amendments are scheduled to come into effect on the 29th of March.

To view the new Residential Tenancies Regulations 2021 in its entirety, please click here.

The team at Nelson Alexander are fully equipped to assist you with the management of your property under the updated Residential Tenancy Act.