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Page 1of 10Changes to tenancy lawsvideoscriptHello. You must beinterested in finding out aboutthe Residential Tenancies Act two thousand and ten, and how thereforms to NSW tenancy lawsaffect you.We’re here to give you an overview of some of the key changes.So, do the new laws apply to existing tenancies?Yes. The new laws apply to allresidential tenanciesin NSWfrom the date the laws commence.Existing leasesremain valid and there is no need to replace current agreementswith new ones. But, if there are any terms in an existing lease that conflict with the new laws, the new laws will apply.If you would like more information after watchingthis presentation, there are documents you can download that explain the changes in more detail. Or,if you wouldlike to speak to someone at Fair Trading,call 13 32 20 between the hours of 8.30am and 5pmMonday to Friday.Beginning a tenancy1.Before signing a leaseThe new lawsintroducea number of changes to things that happen beforea new lease is signed. First up, alandlord or agent can ask a prospective tenant to pay a holding fee of up to 1 week’s rent.How is this different from a ‘reservation fee’?A holding fee can only be requested from a prospective tenant aftertheir tenancy application has been approved.What does a holding fee do?Acceptance of aholding fee means the agent or landlord must keep the premises for the prospective tenant for at least 7 days. The property must not be offered to anyone else during this time. What happens if thetenantchangestheir mind after paying a holding fee?If the prospective tenant decides not to go aheadwith the tenancy they forfeit the full amount of the holding fee, not just a portion of it, as was the case under the old ‘reservation fee’ system.What happens if things change and the landlord or agent is forcedto withdraw from their commitment to rent the property?Once a holding fee has been accepted, the landlord is committed to entering into a lease with the prospective tenant. If for whatever reason they do not do this, the prospective tenant canapply to the Tribunal for the matter to be resolved.
Page 2of 10Before the tenant signs a lease at the start of a tenancy, the landlord or agent must disclose certain things to them. These include:if a sale contract has been prepared for the propertyif a financial institution has commenced court action to take possession of the premisesand certain material factsabout the premises.What do you mean bymaterial facts?A material fact is information about the premises that is relevant to the tenant’s decision as to whether or not they want to live inthe property. For example, if it has any significant health or safety risks, or if a serious flood, bushfire or violent crime has occurred in it in the last 5 years.What if a landlord has recently bought a property and doesn’t know all the historicalmaterial facts?There is no expectation that a landlord or agent look into the history of a property. But they arerequired to disclose whatthey already know about the property to a prospective tenant. So what happens if any of these things are nottoldto a tenant?Failure to disclose this informationmay mean that the tenant can get out of the lease and seek compensationfrom the landlord.2.LeaseThe new laws makeit clear that a landlord or agent must provide a tenant with a written leasein the standard form at the start of a tenancy. And by the way, the formal name for a lease is residential tenancy agreement.The new laws also make it clear that landlords and agents are no longer permitted tocharge tenants a fee to prepare a lease. If for some reason a tenancy begins and is notcovered by a written lease, it is deemed to bea six month agreement.What does that mean?It means that for six months, the rent cannot be increased and the tenant cannot be asked to leave unless they breach the terms of a standard lease.The standard tenancy agreement and the premises condition report have been updated and modernised.As well, certain lease terms are prohibitedunderthe new laws, including compulsory carpet cleaning attheend ofatenancy.So does this mean that the tenant cannot be charged to clean the carpet if they leave it dirty?No, the tenant is responsible for leavingthecarpetclean. Ifthey don’t,thetenantwouldhaveto pay forthe carpet to be cleaned.What aboutif the tenant hasa pet?If the landlord allowsthe tenant to keep a cat or dog, the lease caninclude a carpet cleaning term. This is the onlycircumstance where a carpet cleaning term could be added to a lease.