The NSW Residential Tenancies Bill for 2010 was passed in NSW Parliament on the 6th June 2010 by the Hon. Virginia Judge, Minster for Housing.

It is anticipated that this Bill will come into effect in NSW prior to the end of the calendar year 2010. The property management community is eagerly awaiting advice for its implementation.

Until then apmasphere has taken on the task of understanding the increased legislation and has prepared a report presented as three 'Cheat Sheets' to assist the property management community in understanding how their day to day association with tenanted properties may change.

The new Bill consists of 12 Parts. Each Part has a number of divisions. So you can refer to the draft Bill for a more lengthy explanation, this Cheat Sheet simply outlines the changes that are new to the legislation in each Part.

The Changes

Part 2 – Residential tenancy agreements

• The tribunal may order that a tenancy agreement is actually in place where there lacks an actual written agreement. Therefore they can order a written agreement be entered into and they may also determine some of the clauses they feel should be included.
• Prohibited terms for tenancy agreements have been included and there are five specifically listed. Of particular note, the exception of a landlord by a tenant from liability for an act or omission and this includes the landlords agent/s.
• Long term leases in excess of 20 years now have a different set of rules. With regard to tenancy agreements it means that standard terms are not applicable; with the exception of
  • the payment of property costs by the landlord
  • rent increases limited to annual
  • the tribunal process still applies
  • the rules of termination still apply
  • the tribunal has discretionary powers relating to the terms of the agreement

Part 3 – Rights and obligations of landlords and tenants

• A Holding Fee can only be requested of a tenant of their application has been approved by the Owner. Once received, the Owner can not enter into a tenancy agreement with another party for a period of seven days following receipt unless the tenant withdraws.
• Knowledge pertaining to a “Material Fact” must be disclosed to a prospective tenant.
• If an Owner has entered into a contract for sale or a mortgagee has commenced legal action, this must be disclosed to the prospective tenant via an “information statement” prior to signing the tenancy agreement.
• The tenant should be present to complete the outgoing condition report with the owner or owner's property manager.
• The tribunal will now make orders relating to the amendment of a condition report at the beginning of a tenancy should there be a dispute, rather than waiting until the end of the tenancy.
• Rent can not be requested to be paid more than two weeks in advance.
• At least one method for the payment of rent must be made available to the tenant, that does not incur a fee, other than bank fees.
• A rent ledger can be requested by a tenant in writing and the owner must respond within seven days.
• Tenants must receive a copy of the water bill if the owner intends to seek reimbursement for the water usage component. An owner has three months from the issuing of the water bill to provide the tenant with a copy.
• A tenant must pay the water usage component within 21 days of receiving the water bill.
• An owner is responsible to pay for the installation costs and charges for initial connections of services to the property, this excludes a telephone service.
• Following a rent increase being issued, it may be cancelled or varied as a way of reducing the end figure. Any later notice is deemed the legal one.
•  An owner does not need to issue a further notice to increase the rent back to it's original rate at the end of a reduced period.
• Applications to tribunal concerning rent increase disputes must be made within the initial 12 months of the rent increase.
• Tenancies on a fixed term exceeding two years are subject to rent increases, without terms of this nature being included in the tenancy agreement.
• The tenant may request a rent reduction in writing, if the owner reduces the services available during the tenancy.
• Rent is no longer payable by the tenant if the premises become uninhabitable or partly uninhabitable, possessed by an authority or destroyed.
• An owner and tenant may agree to reduce the rent during a sales process.
• A tenant may apply for an order that a rent increase is excessive within 30 days after receiving the notice. Any rent paid at the increased rent, may be be required to be repaid by the owner to the tenant retrospectively following a tribunal order.
• If an order is granted, it's live for 12 months only.
• Where an owner incurs penalty costs as a result of a rent payment dishon ouring, the tenant must reimburse for the loss.
• An owner is now required to provide the tenant with at least 14 days advice that the property will be for sale.
• The tenant must not be unreasonable with providing periodic times for purchasers to inspect the property.
• Inspections may be limited to not more than two occasions per week if the tenant requests this, with 48 hours notice on each occasion.
• A tenant may seek orders limiting the number of inspections by an agent relating to the sale of the property.
• A tenant make request the tribunal to make an order for compensation relating to their goods should they be damaged or lost as a result of an owners representative being at the property.
• Extra reasons for entry to the property without consent have been included, notably to value the property annually, providing seven days notice.
• om: 5px;">A person entering the property with the consent of the landlord may be required to present this consent at the tenants request.
• An owner may apply to the tribunal seeking an order for entry for the purposes of determining if the tenant has breached the tenancy agreement.
• State of repair, even if the tenanted entered into a tenancy agreement with knowledge of this, the landlord may still be required to repair.
• The tribunal may makes orders relating to repairs required taking into consideration the age of the item, state of repair and rent being achieved for the property.
• A tenant can not make alternation, additions or renovations to the property without the owners, written consent.
• An owner can not unreasonably withhold consent for minor alterations, additions or renovations.
• If the tenant has permission, the alternations, additions or renovations must be made at the cost of the tenant.
• The tenant, at the tenants cost may remove any fixture that was installed by the tenant prior to the end of tenancy. They must compensate the landlord for any damage or repair the damage at their cost.
• If the fixture was installed at the landlords cost, the tenant does not have the right to remove it, without consent.
• The tribunal may make orders to the above effect.
• Locks can be changed where security if the property is at risk.
• Any party changing the locks must provide the other party with a copy of the keys within seven days of the change.

Part 4 – Changes of tenant and landlord

• An owner must not charge the tenant for unreasonable costs in transferring or sub-letting the property with consent.
• An owner may withhold consent whether it is reasonable or not, to transfer or sub-let the whole tenancy.
• An owner must not unreasonably withhold consent for the transfer or sub-letting if the result is that only one or more tenants other than the original tenant under the agreement make this request.
• With consideration to transfer or sub-leasing, the owner may withhold consent if
  • it would mean the number of occupants increases in excess of the number agreed to on the tenancy agreement
  • the proposed tenant is listed on a tenancy database.
  • If overcrowding would result.
• A tenant make apply for a consent order in relation to the above if they fee the owner unreasonably withheld consent.
• An occupant of a property may make application to the tribunal to be made a party to the tenancy agreement, if not named.
• This order may be made if the tenant had died or no longer occupies the property.
• A co-tenant may give 21 days notice to vacate the premises upon the death of the tenant, regardless of a fixed term agreement being place.
• In the event a final apprehended violence order is made against the tenant, a co-tenant may remain in the property and apply for tenancy but effectively the tenancy agreement is terminated for the tenant.