The Residential Tenancies Amendment (Review) Act 2018 (NSW) (the Amending Act) has successfully passed Parliament and will amend the Residential Tenancies Act 2010 (NSW) (the RT Act) when it comes into effect by proclamation, anticipated in 2019. The Amending Act has been drafted to increase protection and stability to tenants, while ensuring that landlords can protect their investment and effectively maintain their properties. The key reforms to the RT Act include: Protection for domestic violence victims A tenant may terminate a tenancy by written notice to the landlord on grounds that the tenant is in circumstances of domestic violence (and provides sufficient evidence of the domestic violence). Victims of domestic violence will not be held liable for any damage caused to premises by their perpetrator during a domestic violence offence. Rental increases for periodic agreements Rental increases for periodic agreements will be limited to once in a 12 month period. Disclosure of strata by-laws For rental premises within a strata scheme, landlords or their agents will be required to give a tenant a copy of the strata by-laws before the parties enter into a residential tenancy agreement. Failure to disclose the applicable strata by-laws will entitle the tenant to terminate the tenancy. Damage and maintenance of premises Landlords may apply to the Commissioner for NSW Fair Trading to investigate whether a tenant has intentionally or negligently caused or permitted damage to the premises and, without reasonable excuse, failed to repair the premises. Tenants may apply to the Commissioner for NSW Fair Trading to investigate whether the landlord has breached their general obligations to maintain the residential premises in a reasonable state of repair. Publishing photographs Landlords and agents will be prohibited from publishing photographs or visual recordings of a rental property showing a tenant’s possessions without obtaining the tenant’s written consent, which cannot be unreasonably withheld. However, it will not be considered unreasonable if the tenant has been or is in circumstances of domestic violence. Break lease formula to apply to fixed tenancy agreements A break lease formula (using a sliding scale) will be applied to leases up to three years. The amount payable to the landlord will reduce in proportion to the balance of the fixed term agreement. Execution of acknowledgment on a residential tenancy agreement It will be an offence for a landlord or landlord’s agent to enter into a residential tenancy agreement if the landlord or landlord’s agent has not signed an acknowledgment on a residential tenancy agreement that the landlord has read and understood the contents of the rights and obligations information statement. Smoke alarms Generally, only landlords will be able to repair smoke alarms. The obligation carries a maximum penalty of $2,200 for failure to repair a smoke alarm. Landlord’s general obligations Residential premises will not be fit for habitation at the commencement of a tenancy unless the premises: is structurally sound has adequate natural or artificial lighting in each room, except for storage rooms or garages has adequate ventilation is supplied with electricity or gas and has adequate electricity or gas outlets for lighting, heating and appliances has adequate plumbing and drainage is connected to a water supply service or infrastructure for the supply of hot and cold water for drinking, washing and cleaning, and contains bathroom facilities, including toilet and washing facilities which allow the user privacy. These requirements are baseline standards and are not an exhaustive list of whether a residential premises is fit for habitation. It is anticipated that the Amending Act will be proclaimed in early 2019, following the enactment of the supporting regulations.
