Second Stage Reforms - Coming Our Way

As you may be aware, we have been navigating several changes in property management regulations this year, with more updates on the horizon. In our previous communication from early June, we outlined the reforms that were introduced on June 24, addressing issues such as rental increases and rent bidding. We also mentioned that additional changes would be forthcoming.

Last week, the government announced the implementation dates for these forthcoming changes. Please note the following:

30 September 2024

All bond claims must be accompanied by supporting evidence provided to the tenant within 14 days of making the claim. This means that the bond (or any portion thereof) cannot be claimed unless you have corresponding invoices or quotes to substantiate the amount claimed.

Tenants must be provided with a fee-free option to pay their rent.

Bonds will be capped at 4 weeks. Tenants may be able to request a refund if their bond exceeds 4 weeks when they sign a new lease.

All bills will need to be issued to the tenant within four weeks of receipt from the supplier. This includes all water and utility bills.

Break lease fees will be capped based on the portion of the tenancy that has been completed. The fees are as follows:

• If less than 25% of the lease has been completed: Four weeks' rent
• If more than 25% but less than 50% of the lease has been completed: Three weeks' rent
• If more than 50% but less than 75% of the lease has been completed: Two weeks' rent
• If more than 75% of the lease has been completed: One week's rent

1 May 2025

Property managers will be required to use a specific form for tenancy applications, and the information that we can collect will be limited. Entry notice periods will be extended from 24 hours to 48 hours. Additionally, if the property is listed for sale or rent, there will be limitations on the number of times an agent can enter the property.

A new process will be introduced for how a tenant can request the attachment of fixtures or structural changes in residential properties. We are of the understanding it would be similar to the current pet request procedure, where a landlord must provide a response within a certain time frame, or the request is automatically approved.

For most of you, these changes may not have a significant impact. However, we anticipate that the new cap on break lease fees will be the most notable change and could have considerable implications. This year, we have experienced a total of 34 lease breaks. Most of these were due to tenants purchasing a home, while others were seeking to reduce their expenses by finding more affordable accommodation. These new reforms will provide tenants with greater flexibility to terminate their lease early, especially those nearing the end of their lease term. If a tenant has completed over 75% of their lease, they may be able to vacate with just three weeks' notice, which includes two weeks' written notice plus a one-week capped fee.

If you have any further questions regarding these changes and what they might mean to you please give your property manager a call or send us a message HERE