As you may be aware from recent media the residential tenancies act 2010 has been passed by the NSW parliament and is proposed to come into effect on 31 January 2011. If you’re an investment property owner in NSW, this can mean some important changes for you – so what are the main reforms in the Act?
1. “No grounds” termination notice
The act increases the notice given to tenants who are no longer in a fixed term lease from 60 days to 90 days.
2. “rent arrears evictions” The act will give a guarantee to tenants that their tenancy can continue if their rent arrears are paid of if they follow an agreed repayment plan, however this guarantee will not apply if the tenant is shown to have frequently failed to pay their rent on time.
The act gives tenants greater flexibility to add fixtures or make minor alterations at their own expense, provided they obtain the landlords consent. Landlords are able to reasonably refuse such requests. For example if it involves painting the premises or structural changes.
The act gives tenants greater flexibility to sub-let part of the premises or wishes to include an extra co-tenant, provided they obtain the landlords consent.
These new laws emphasise the importance of selecting a professional property manager – if your property manager isn’t abreast of the new laws and changes it will affect how well they can look after your valuable investment.
So please, only appoint a property manager that has experience and preferably one with some experience as a landlord – then they’ll have a great grasp of what is in your best interest.