NSW More rental legislation changes tabled

Hi everyone,

If you own an investment property in NSW you should be aware that some legislation was tabled to NSW Parliament late last week that could impact how you are able to deal with your investment property.

It's been tabled under the veil of Flood Protections, however, only a small portion of the legislation deals with flood protections (and even that portion of the legislation needs very careful scrutiny as I can see a number of issues with it as a property manager and investor).

You can read the legislation here:

https://www.parliament.nsw.gov.au/bill/files/3952/First Print.pdf


And you can read the Explanation notes here:

https://www.parliament.nsw.gov.au/b...Protections and Flood Response) Bill 2022.pdf


If you want to be able to continue to deal with your property on your own commercial terms I strongly suggest you read these documents and then write to your representatives in both houses of NSW parliament.

 

Wow.... this changes everything.... including removal of 90 days no grounds termination.

Thanks for letting us know!

 

Yes, it's very concerning for investors and property managers alike.

 

Overall I dont see concerns. The retaliatory eviction has been on the cards a while. Perfect timing to throw it in?

1. Flood impacted property tenants can break leases. A good thing when it is impacted by floodwater. BUT it also applies to unaffected property in those regions. Owners beware. Why prolong hardship and financial penalties on impacted tenants ? This also allows owners to claim on LL policies for lost rent. Probably good. IF they are insured. On review it appears the legislation does say "impacted". It doesnt say by floodwater. It could be their work etc. Fair too if they arent and the property was impacted. Their financial hardship is already evident. Unfair if the tenant wants out of an unaffected property in the region but imagine dry properties could command higher rent in such cases. .
2. Mould tick. A growing problem some LLs ignore.
3. No grounds...Hmmm "retaliatory" is the key element. No specific concerns. "Partly or wholly motivated"is the test being imposed. Fair enough but just how is a LL going to disprove a tenant claim it was motivated for retaliation ?. Seems like the onus on the LL is to demonstrate the grounds for eviction also factually occurred by considering the events after eviction. Probably of limited effect since once a tenant is out, they are out. But could be used to keep LLs honest. This has been on the table a while. Other states have recently acted.
4. rent limits. Annually. Fair enough not that hard. May even mean its a entrenched element of all leases. Could cost tenants more than rents not being upped.
5. rent limits to CPI...Hmmm thats sort of OK. However it could also see a change in approach so ALL tenants face ratchting and progressive CPI increase annually. Not sure tenants will all like that. And at a time when CPI is expected to rise. BUT its also the lesser of public sector wage rises....So could it be less ? Cant imagine public servants being above CPI.
6. waterproofing ? What does that mean ? A shower for leaks OK. But what does "waterproof" mean?. A temporary roof leak ? What about if water rises ? Does it mean carpet now must be waterproof from kitchen plumbing leaks ? Lacks some logic.
7. Plumbing and DRAINAGE could be a issue for poorly maintained property with poor drainage ? Does this mean the house, or what about the yard ?
8. Morotorium period for flood impacted region property. The property itself doesnt need to have been impacted. 12mths.