Focus has achieved zero vacancy rates across our portfolio for the last three consecutive weeks of March 2010. This result is due to great negotiating by our Leasing Manager Rebecca Davis and stronger market demand.
During February/March we have been busy reviewing the rents on hundreds of properties and are excited to advise that on average rents were increased by almost 5%. We predict that we will replicate this increase in the last quarter of 2010, market permitting.
DRAFT RESIDENTIAL TENANCIES BILL 2009
Are you aware of the Draft Residential Tenancies Bill 2009. There are a number of significant changes in this document that may affect you if these are passed by the NSW government. It is important to note the Final Bill passed may differ from this draft.
For the most part the Draft Bill will make formal what has been best practice in the property management industry. I have given a balanced professional opinion.
Pre-agreement matters: The importance of condition reports is to be recognised and there will be a process to resolve disputes about the accuracy of such reports. BM – This is a move in the right direction.
Repairs: It is proposed to extend the urgent repairs provisions to include substantial water leaks and a breakdown of an air conditioner supplied with the premises. BM - Whilst an A/C repair may be a “priority repair” we do not consider it urgent. This may result in exorbitant technician callout fees.
Access: A number of new grounds for access have been added such as tenants will not be able to hinder or deny access after proper notice has been given without reasonable excuse. BM - Any move to facilitate greater ease of access is a win for property investors.
Termination of Residential Tenancy Agreement
a) It is proposed that landlords will have to give 90 day’s notice to tenants who are no longer on a fixed term of their lease. Currently this is 60 days. BM – This certainly favors the tenant, but should not create any issues for organised landlords and proactive property managers.
b) It is proposed that Landlords will have to increase the notice period at the End of a fixed term lease from 14 days to 30 days. BM – Again this should not present any issues.
c) It is worth mentioning that a tenant’s notice period to landlord at the end of a fixed term remains unchanged at 21 days.
d) If a landlord gives notice to a tenant, the tenant may give counter notice and vacate any time prior to the original date without penalty. BM – This is a more flexible and a fairer deal for the tenant, but may result in increased vacancy period for landlords.
e) The draft Bill introduces the concept of a ‘break fee’ similar to fees payable for instance when a gym membership or mobile phone contract is broken. It is proposed that if your tenant has more than 6 months left on the lease term the ‘break fee’ would be 6 weeks rent and if less than 6 months would be 4 weeks rent.
The landlord has no obligation to refund any part of the ‘break fee’. BM – This is a clearer process, however landlords could be out of pocket as they would be responsible for all costs associated with re-leasing the property and any vacancy period, quickly eroding the ‘break fee’
Feel free to contact your property manager if you have any further questions on these proposed changes. Click here to access more information via our website.
Until next time, take care.
-Bernie Mitchell
