Page 1877 - Week 06 - Wednesday, 8 June 2016

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To maximise the information available to potential tenants about a premises’s energy consumption, the bill updates disclosure requirements relating to its energy efficiency rating. Presently, the act makes it an offence not to include the rating when advertising a lease or to provide information about the rating that is misleading or false. Where a property does not have an energy efficiency rating, the bill will now require the lessor to include a statement to that effect in their advertisement.

As a matter of safety, the bill introduces a new section 11B to require a lessor not to enter into a lease unless there are smoke alarms installed in the rent premises that comply with the relevant provisions of the Building Code. Currently, rent premises with smoke alarms that do not comply will have 12 months from the commencement of the bill to install compliant devices. In addition, the bill incorporates this provision into the standard terms for a residential lease.

New section 61A of the bill confers a right of entry on a lessor where they have taken reasonable steps to contact the tenant and believe on reasonable grounds that the tenant has abandoned the premises. To confirm this belief, the bill permits a lessor to enter the premises at a reasonable time, not including a Sunday or public holiday and not before 8 am or after 6 pm.

Under the bill parties may also elect to include a standard term that would allow a tenant to break their fixed-term lease before it expires. A tenant who exercises this option must pay a break fee, which will generally be four to six weeks’ rent.

Other amendments in the bill refine provisions relating to condition reports. The act currently provides for condition reports to be completed at the commencement of a tenancy agreement to record the state of the premises and of any goods leased when a tenant takes possession. The bill will amend the act to include a requirement for a complementary end-of-tenancy condition report.

Introducing final condition reports will improve the management of end-of-tenancy disputes by creating more transparency and communication between parties regarding the premises’s condition. To foster greater accessibility and transparency, the bill modifies the process by which people can apply for release of their rental bond when a lease ends.

This will provide additional opportunity for a lessor and tenant to resolve disputes about the bond refund arrangement before the application is lodged with the territory. Specifically, new section 34 obliges a lessor to provide a signed bond application form to a tenant, generally within three working days of the end of the lease. To deduct a portion of the bond a lessor must also provide a written statement explaining the grounds for the deduction. This new application structure streamlines the existing process, increases flexibility and, most importantly, guarantees that tenants are aware of proposed deductions to the bond and have opportunities to dispute them.

In response to recommendations in the review, the bill also amends the Uncollected Goods Act. These amendments address a perceived lack of clarity about whether the Uncollected Goods Act applies to possessions left behind at the end of a tenancy with no indication of when or if they will be collected. The bill clarifies that goods that are held as well as received are covered by the Uncollected Goods Act.


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