Or that landlords with properties in Victoria will soon need to give 90 days' notice if they wish to raise the rent?
With a large wave of rental reforms coming into effect across the country, it can be difficult for property investors to keep up with the rules that affect them.
Recent data from Reapit's property management platform Console Cloud revealed that some landlords may not be aware of recent changes to water efficiency standards in NSW.
On 23 March, new water efficiency rules came into effect in NSW that require rental properties to have dual flush toilets with a minimum 3-star Water Efficiency Labelling and Standards (WELS) rating in order for landlords to pass on water usage charges to their tenants.
According to our data, there were only 120 maintenance requests for water efficiency and toilet compliance checks in NSW between December and February, fewer than expected, given the imminent changes.
These jobs typically cost between $800 and $1,000, which many landlords would consider a worthwhile investment as it enables them to continue passing on water usage charges to their tenants.
Rental reforms like these have a tangible impact on landlords, and failure to comply with certain regulations can result in financial penalties, so it's important to stay informed. And this year, there are a considerable number of reforms on the horizon.
In early March, Victoria's rental protection laws passed state parliament, building on more than 130 reforms introduced in the state since 2021.
Due to come into effect this November, the reforms include a ban on no fault evictions and an extension of the notice period from 60 to 90 days for both notices to vacate and rental increases.
In Queensland, a third tranche of rental reforms will also take effect from 1 May this year, following two rounds of rental reforms in June and September last year. Among the changes are prescribed rental application forms and restrictions on the information that can be requested from prospective tenants during the application process.
This includes rental bond history and statements detailing a potential tenant's credit or bank account transaction history. Agencies must also offer at least two methods for prospective tenants to submit their applications, including one that is not via a third-party form.
The ACT also had rental reforms come into effect in January, including rent increases being limited to once per year.
And last year, a swathe of new rules came into play in South Australia, where routine inspections are now capped at four per year, and the notice period to end a fixed-term tenancy increased from 28 days to 60 days.
The reforms outlined above represent just a fraction of the recent and upcoming changes to rental legislation around the country.
A lot to navigate, but a positive outlook
Although it can be difficult for property managers and landlords to keep abreast of this constant stream of rental reforms, these legislative changes aim to create a healthier and more sustainable rental market.
This is something we should all be supportive of given that Australians are renting for much longer than previous generations due to financial barriers to home ownership.
Our team is doing all it can to support property managers, landlords, prospective tenants, and renters navigate the rental reforms in their relevant states. This includes ensuring our systems are aligned with new legislation and providing the right tools to help users remain compliant.
If you are a landlord wanting to better understand recent or upcoming changes, make sure you reach out to your property manager. They are across the details and are working to adapt to these reforms to ensure compliance and the effective management of each landlord's property.
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