Amended 7 February 2011

NSW Fair Trading Minister Virginia Judge today launched the State’s new residential tenancies laws, which include more than 100 changes to the rights and responsibilities of tenants and landlords.

Where: Wynyard Park, Sydney, York Street entrance
When: 10.00am, Monday 31 January, 2011.

The Minister was joined at the launch by celebrity builder, Tom Williams, who made a guest appearance as part of Fair Trading’s public information campaign.

Ms Judge said both the Residential Tenancies Act 2010 and the Residential Tenancies Regulation 2010 commence today (31 January).

“This is the biggest change to the State’s residential tenancy laws in more than 20 years,” she said.

Ms Judge said an estimated 1.6 million people currently rent properties in NSW.

“The new laws are relevant to most people at some point in their lives, whether as a tenant or a property investor,” she said.

“The new laws are a result of more than 2,000 submissions and four rounds of public consultation with landlords, tenants, the real estate industry and the community.

“There are more than 100 amendments and there is greater clarity and certainty in the legislation.”

Ms Judge said the changes were a win-win for landlords and tenants and, as a result, there should be a reduction in disputes.

“I’m also delighted Tom Williams will be part of the public information campaign,” she said.

Mr Williams believes the new laws will help support the continued viability of the NSW rental market.

He said with so many people now renting, the tenancy laws reflected the modern rental market.

“In my experience as a landlord and tenant, I’ve learnt that things need to be as transparent and easy as possible.

“The new laws fairly balance the rights and obligation of tenants and landlords and it’s important for all involved to find out about the changes via the NSW Fair Trading website,” he said.

Tenants’ Union spokesman Chris Martin welcomed the changes.

“The reforms are sensible, modest improvements that fix problems and omissions in the law,” he said.

Minister Judge said Fair Trading would be conducting a comprehensive communications campaign at many locations across the State to encourage tenants, landlords and property managers to become familiar with the changes.

The centrepiece of the campaign is a mini house that will feature at three major Sydney locations until mid February, along with mobile displays for regional areas and multi-lingual print and radio advertising.

The mini house will be in Wynyard Park from 31 January to 2 February, on level 4 of Blacktown’s Westpoint Shopping Centre from 9-11 February and in Church Street Mall at Parramatta from 16-18 February.

Fair Trading staff will be available each day to provide visitors to the house with all the information they need about the new laws.

Information about the new rights and responsibilities of landlords and tenants can be found at this website.

The top 10 improvements for tenants are:

1. Extension of notice periods for tenants to vacate - from 14 days to 30 days at the end of a fixed term lease (section 84) and from 60 days to 90 days where the fixed term lease has expired (section 85).
2. Tenants must be given at least one way to pay their rent without incurring a fee (section 35).
3. Tenants who are wrongly or unfairly listed on tenancy databases can apply to have the listings removed (Part 11).
4. More flexibility to add fixtures and make minor alterations (section 66).
5. Premises need to be water efficient before tenants can be asked to pay for water usage (section 39). Water charges can continue to apply to existing tenants, but efficiency improvements must be made within 12 months. 
6. Landlords to disclose material facts, such as violent crime or fires, to prospective tenants (section 26).
7. Tenants must be told before the premises are placed on the market and maximum of two inspection periods per week unless the tenant otherwise agrees (sections 26, 53).
8. Landlords will not be able to unreasonably refuse consent to sub-let part of the premises (section 75).
9. Removal of additional bond for furnished premises (section 159) and bond top-ups prohibited (section 161).
10. Better protection for victims of domestic violence (sections 71, 100-102, 174).

The top 10 improvements for landlords/agents are:

1. Faster rental arrears eviction process – application to Tribunal can be made at same time as serving notice to tenant, cutting the time by up to 2 weeks (section 88), and
   notices now able to be served direct to a tenant’s letterbox, potentially saving up to another week (section 223).
2. The process for dealing with goods left behind when a tenant vacates is to be streamlined, including removing the requirement to advertise in a newspaper and sell the goods (Division 2 of Part 6); rubbish and perishable items left behind by a tenant will be able to be disposed of immediately, instead of after 2 days (section 128).
3. New grounds for immediate termination – illegal use of premises (section 91) and for threat, abuse, intimidation or harassment of landlord, agent, employees or contractors (section 92).
4. Guarantee of possession once lease has ended if notice is given properly (currently, the Tribunal can refuse to terminate, even where proper notice is given) (sections 84
   & 85).
5. Tribunal to have broader power to waive errors in the content or service of notices, without dismissing an application (section 113).
6. The right to show premises to prospective buyers twice per week or upon giving 48 hours notice, rather than the current ‘reasonable notice’ (sections 53 & 55) with an obligation on tenants to grant access where proper notice is given (section 58).
7. The existing grounds for termination on the basis the tenant has caused serious damage or injury is to be extended to include damage to neighbouring property and injury to an employee or contractor of the landlord or landlord’s agent (section 90).
8. Unpaid water charges will be able to be accumulated and claimed from the tenant’s bond (section 39 & 166).
9. A non-exhaustive list of costs that may be claimed from a tenant’s bond has been included (section 166).
10. Neither a tenant or the Tribunal will be able to raise issues with the validity of a rent increase notice once it is more than 12 months old (section 41).

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