If you are a landlord or a tenant of residential property, you should be aware of the Residential Tenancies Act 2010, assented to by NSW Parliament on 17 June 2010 and due to commence shortly. The Act represents a major reworking of the NSW residential tenancy legislation. Whilst most of the changes to the 1987 Act favour the tenant, some processes have been made easier for the landlord.

Key amendments to NSW residential tenancy legislation

Rent arrears and notices

A landlord must accept payment of unpaid rent from a tenant if the landlord has given a termination notice on the grounds of failure to pay rent and the tenant has not yet vacated the premises. This provision is intended to assist genuine tenants encountering temporary financial difficulties (s34).

Water usage

If a landlord wants to be entitled to recover water usage charges for the premises from a tenant, the landlord must ensure that the premises contain water efficiency measures prescribed by the regulations (s39).

Landlord selling residential property

A landlord must give the tenant written notice of the landlord's intention to sell the premises at least 14 days before the premises are first made available for inspection to prospective purchasers. Previously, there was no such obligation (s53).

Except in the case of a lease which is still on a fixed term residential tenancy agreement, a landlord may terminate a residential tenancy agreement by giving not less than 30 days' notice on the grounds that the landlord has entered into a contract to sell the property requiring the landlord to give the purchaser vacant possession (s86).

Termination

The notice period for the landlord to terminate a periodic tenancy has been increased by 60 days to 90 days (s85).

A tenant may give a termination notice for a fixed term agreement on any of the following grounds:

  • The tenant has been offered and has accepted accommodation in social housing premises
  • The tenant has accepted a place in an aged care facility
  • The landlord has notified the tenant of the landlord's intention to sell the premises and did not disclose the proposed sale before entering into the residential tenancy agreement
  • A co-tenant or occupancy or former co-tenant or occupancy is prohibited by a final AVO from having access to the premises (s97)

Benefits for the landlord

  • Able to service eviction notices directly to the tenant's letterbox
  • May apply to the Consumer, Trader and Tenancy Tribunal for a hearing date at the same time as serving the eviction notice
  • No longer required to advertise in relation to unclaimed " goods or move and store unclaimed goods left by a tenant in residential property

If you are a landlord, you need to be aware of the provisions of the new legislation, particularly in relation to your obligations under a new residential tenancy agreement, or if you intend to sell the property whilst there is a residential tenancy agreement in place. For further information, please contact Mary Digiglio.

A copy of the full text of the Residential Tenancies Act 2010 can be downloaded from the website of NSW Parliament.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.