Property investors welcome new tenancy laws

20 Jul 2010

The changes in the Residential Tenancies Amendment Bill was passed by parliament on 20th July 2010. According to the Housing Minister Phil Heatley, the new bill will satisfy the demands of the landlords, property investors and the tenants.

The changes to the Residential Tenancies Amendment Bill include eliminating confusing tenancy processes. The bill introduces new penalties for tenants troubling neighbours of up to $2,000. Earlier there were no penalties for tenants abandoning their rental property with outstanding rent. But now, if the tenants are found leaving their rental property or home without paying their rent, they’ll be required to pay off what they owed. They may have to pay landlords as much as $1,000.

According to the new Act, a tenancy may be terminated if the renter abuses, threatens or lets others attack the property-manager, landlord, other inhabitants or neighbour. The new bill also empowers landlords to discard any property left behind by the renter at the end of the tenancy. However, the property owner/investor can only do so when the market value of the property is less than the storage and transportation costs.

The landlord or property manager can file case against the tenant if he refuses to leave the home at the end of the tenancy. The renters are also forbidden to use the property for illegal purposes.

However, the new laws also specify that boarding house landlords will have to give tenants 28 days notice before terminating a tenancy. This means that the tenants can’t be evicted from the property on any flimsy pretext. Also, according to the new Act, the landlords are required to execute essential repairs on the boarding house.

Some other laws of the Act comprise clearer process for exempting and renewing tenancies. Landlords also need to explain to the tenants about what can happen after fixed-term tenancy expires. The landlords or property owners are required to explain the process for terminating a tenancy on the event of non-payment of rent.

Source: MortgageFit Community