Draft tenancy laws anger agents

Draft tenancy laws anger agents

17 March 2010 by Staff Reporter 0 comments

Agents are concerned that if the state government passes the proposed NSW residential tenancy laws, investors could be deterred from entering the property market.

According to the Real Estate Business monthly straw poll, 83.9 per cent of real estate agents believe the proposed changes to the NSW residential tenancy laws will deter investors.

Of 180 respondents, only 11.1 per cent said investors would not be affected by the impending legislation, while 5 per cent were unsure what the situation will be if the draft laws are passed.

Under the draft Residential Tenancies Bill, tenants will have greater flexibility to add fixtures or make alterations of a minor or cosmetic nature at their own expense. The draft Bill would also enable tenants to break a lease early without penalty in specified situations, such as where they accept an offer of public housing or need to move into a nursing home.

First National Coogee principal James Giltinan said while it is hard to comment on the drafted legislation, any restriction to landlord rights could prove problematic.

“It hard to know what will happen because the draft laws are subject to change,” Mr Giltinan told Real Estate Business.

“But when it comes to tenant’s being able to make minor renovations – how do you define ‘minor’?”.

Mr Giltinan added that any proposal giving tenants the right to vacate a fixed term lease will contradict the purpose of having a fixed term lease.

“What is the point of even having a lease if tenants can leave after a month?” he said.

Mr Giltinan said he hopes the government confers with the industry about the impact of the draft legislation before it is passed.

"I haven’t been consulted about [the draft legislation] yet,” he says, adding that it’s important that the real estate industry gives its views on how the draft legislation will impact investors before it becomes law.

Agents are concerned that if the state government passes the proposed NSW residential tenancy laws, investors could be deterred from entering the property market.

According to the Real Estate Business monthly straw poll, 83.9 per cent of real estate agents believe the proposed changes to the NSW residential tenancy laws will deter investors.

Of 180 respondents, only 11.1 per cent said investors would not be affected by the impending legislation, while 5 per cent were unsure what the situation will be if the draft laws are passed.

Under the draft Residential Tenancies Bill, tenants will have greater flexibility to add fixtures or make alterations of a minor or cosmetic nature at their own expense. The draft Bill would also enable tenants to break a lease early without penalty in specified situations, such as where they accept an offer of public housing or need to move into a nursing home.

First National Coogee principal James Giltinan said while it is hard to comment on the drafted legislation, any restriction to landlord rights could prove problematic.

“It hard to know what will happen because the draft laws are subject to change,” Mr Giltinan told Real Estate Business.

“But when it comes to tenant’s being able to make minor renovations – how do you define ‘minor’?”.

Mr Giltinan added that any proposal giving tenants the right to vacate a fixed term lease will contradict the purpose of having a fixed term lease.

“What is the point of even having a lease if tenants can leave after a month?” he said.

Mr Giltinan said he hopes the government confers with the industry about the impact of the draft legislation before it is passed.

"I haven’t been consulted about [the draft legislation] yet,” he says, adding that it’s important that the real estate industry gives its views on how the draft legislation will impact investors before it becomes law.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?