What Landlords Need to Know
The NSW rental market is experiencing its most significant tenancy law reforms in years. These changes, already enacted in NSW, will greatly impact property management practices. Property Managers must ensure compliance with these new rules to protect landlords’ investments. Additionally, similar reforms are being introduced nationally as part of the Federal Government’s ‘A Better Deal for Renters’ policy on tenants’ rights.
Our Concerns and Actions
As members of the REINSW, Morton Real Estate is actively lobbying for fairer rental policies. We are submitting letters to Federal MPs to express our concerns about the national policy on renters’ rights. Our main points of concern include:
- Termination Notices: We believe landlords should be allowed to terminate a tenancy without needing to specify a reason, either with relevant notice or at the end of a fixed term. Legislative reasons cannot address all situations, and a significant notice period allows tenants sufficient time to find alternative accommodation.
- Rent Increases: Restricting rent increases to once a year limits landlords’ ability to set rent in accordance with fair market value. This restriction may disincentivise landlords from investing in residential property, further diminishing supply.
We believe that the current housing crisis stems from accommodation undersupply issues, which are likely to be exacerbated by nationwide policies that alienate landlords. Instead, we suggest that the government should consider changes that incentivise residential investment.
Example Letter Morton has sent to MPs for your information:
“We are writing to you to express concerns about the Government’s national policy on renters. While we appreciate the Government’s motivation to address the housing crisis, we believe these reforms will, in fact, exacerbate the crisis by prompting landlords to sell up and invest elsewhere, further diminishing supply.
As property managers, we work closely with landlords and tenants to ensure that both parties’ housing objectives are met. The Federal Government’s ‘A Better Deal For Renters’ policy is overwhelmingly tenant-focused and risks alienating landlords who provide much-needed rental accommodation.
We are particularly concerned about the policies restricting termination notices and rent increases. Our experience is that the current housing crisis stems from accommodation undersupply issues, which are likely to be exacerbated by nationwide policies that alienate landlords. This would only further increase demand and drive up rental prices. Instead, the Government should consider changes that incentivize residential investment, and we encourage you to raise these matters and concerns in Parliament on our behalf.”
By advocating for fairer rental policies, Morton Real Estate aims to ensure a balanced approach that protects both landlords and tenants, ultimately contributing to a more stable and sustainable rental market.
As always, if you need more information or assistance with your rental property, please reach out to our property management team. We’re here to help you understand and adapt to these new regulations, ensuring a smooth transition and maximizing your investment potential.
Keep well, stay safe, and warm regards,
Betty Drennan