Article in today's SMH
http://www.smh.com.au/national/tenancy-changes-bring-relief-for-renters-20091222-lbsv.html
Anyone got more information or details on these changes?
Any thoughts from people on how these might affect investors?
I personally like the idea that tenants will be able to make some minor adjustments/improvements at their own expense. Will help to develop a greater sense of ownership for tenants and hopefully also add value to our properties?
On the other hand, not entirely sure about the ability of tenants to end a lease early paying 6 weeks rent. This certainly increases uncertainty and unpredictability in maintaining tenants…
I'd be interested to hear what Steve thoughts are on these changes.
I really love it when the tenant redecorates to their taste. Pity is there will be no requirement for the tenant to reinstate the property to its previous condition ie painting over that red gloss wall or the like.
As for other changes, the LL will pay the whole of the lease prep cost (ie another $15 out of your pocket, on top of the GST component that the tenant doesn't pay at the moment).
There are 2 sides to every story with tenants being required only to pay 6 weeks break costs, who pays the reletting, who suffers the loss when it doesn't get leased out in a flat market or if rents have dropped? Sure there are some circumstances where a tenant should be able to move out eg AVO etc but a blanket over all tenants is just pandering to the lowest common denominator.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
When the tenant trashes the house and abandons a property is there a provision for the landlord to sue the tenant via a small claims tribunal for damages to cover the out of pocket expenses incurred like loss of rent , repair costs, ect ?
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