Being a landlord comes with responsibilities, both legal and ethical.
While ethical responsibilities are of course important, failing to comply with your legal responsibilities can get you into serious trouble.
So how do you ensure you comply with the legal requirements of leasing a home to tenants? While the rules vary from state to state, here is a general outline of what is expected of you.
Rental property guidelines in Australia
• Habitability
Whatever state you are in, the first law that you must abide by as a landlord is to ensure your rental property is adequately safe and habitable.
This means that your property must be structurally sound, free from hazards such as asbestos, and have adequate ventilation and natural light. You must also ensure that any appliances or fixtures such as stoves, heaters and hot water systems, are in good working order and safe to use.
• Landlord access
While there might be slight variations from state to state, the general rule of thumb is that tenants are entitled to their privacy.
This means that you cannot enter the property unannounced.
Some landlords feel that they own the property and, therefore, should be able to enter at any time and for any reason, but this is not supported by the law. Tenants are entitled to notice if you need to visit the premises.
• Tenancy agreement
Landlords are also required to provide a written tenancy agreement across all states.
This agreement should outline the terms and conditions of the tenancy, including the amount of rent, the length of the tenancy, and any other conditions or restrictions that apply. The document is required to be fair and reasonable and must also comply with the specific legislation of the state the property is in.
Recent changes
Over the past few years, most states have either introduced new
legislation around rental properties or are in the process of review.
Here are some updates to be mindful of:
• NSW: In December 2022, NSW made a few significant changes to residential tenancy laws, mostly in relation to domestic abuse. There were also changes to landlord liability for sewerage usage charges and an exemption for what’s known as ‘head lease’ agreements between local councils and social housing providers.
• VIC: In 2021, Victoria introduced new regulations to their rental laws, including a ban on rental bidding, new rental minimum standards, no eviction without a reason, allowable modifications by renters and urgent repairs.
• QLD: In Queensland, significant changes to minimum housing standards are on the horizon, expected to be implemented for new tenancies from 1 September 2023 and for all tenancies from 1 September 2024. The changes are lengthy, so if you own a rental property in Queensland, you can read more at the Queensland Government website.
• SA and WA: South Australia and Western Australia have both had recent reviews to tenancy laws, with changes yet to be fully announced.
What happens if you aren’t compliant with rental property laws?
Repercussions for failing to comply with rental laws can vary from a complaint from tenants to legal proceedings. Either way, you can end up out of pocket or at least lose valuable time and effort in dealing with the situation.
Work with an expert
To add to the above, there are rules about heaters, keys, fire alarms, allowing pets, managing pests and what to do in the event of the home suddenly becoming unlivable because of a flood or fallen tree branch.
With so many things to keep in mind and be aware of, it’s worth bringing an experienced property manager on board to help ensure your investment property meets the requirements to be leased to tenants. For a very small cost, you can potentially save yourself thousands, not to mention a great deal of stress.
Looking for a property manager? Contact our Property Management team today on 07 5501 4000.
