10 things you need to know about NSW's Residential Tenancies Act

Complying with your legal obligations is crucial, regardless of whether you use a property manager or self manage your properties.

With this in mind, we're sharing 10 'must know' things from the Residential Tenancies Act in New South Wales and encouraging you to provide your own. Next week, we'll tackle Victoria.

1. That the following terms are not allowed in your agreement: 
   
   - A requirement for the tenant to have the carpet professionally cleaned, or to pay for the cost of this service, at the end of the tenancy.
   - This may not apply if the tenant has pets. That the tenant needs any sort of specific insurance. 
   - That any rebate may occur if the tenant does not breach the agreement, and, on the other hand, that a tenant is liable to pay all the remaining rent, increased rent or a penalty if they breach the agreement.
   
   
2. Your tenant has anti-discrimination rights.  
   
   While this can be a broad topic, you must not discriminate against tenants on the basis of your tenant's race, religion, sexual oritenation, age or any disabilities. Discrimination can be seen as broad, and may include undertaking extra inspections due to a tenant's age.
   
   
3. Pet bonds are not allowed.
   
   
4. You do not have to allow sub-letting. 
   
   If a tenant is sub-letting without your consent, that is having another resident in the house pay rent to themselves, this is against the agreement.
   
   
5. Tenants must be provided 60 days of written notice for a rent increase.  
   
   When 'written notice' is mentioned, you must allow time for postage if this is your intended method. It is recommended that landlords and property managers keep clear records of when notices have been sent, to avoid a breach.
   
   
6. The property must be in a reasonable state of cleanliness, and it must be habitable, when provided to the tenant.  
   
   While this is a debatable point, it's largely worth remembering the state of a property you would be happy to inhabit, and emulate this. Remember to focus on making the property compliant, safe and clean.
   
   
7. Tenants are required to report the need for repairs and maintenance. 
   
   They must also not make material additions or changes, such as the alteration of locks or security devices, or fly screens, without the consent of the landlord.
   
   
8. There is a limit on the amount of bond you can charge a tenant.
   
   In New South Wales, this limit is up to four week's of the rent you have agreed to pay. As a landlord or property manager, a bond lodgement form is required to be provided to the tenant.
   
   
9. A landlord must tell tenants 'material facts'.  
   
   These material facts include whether the home has been subject to serious flooding or bushfire in the past five years, if there are any health/safety risks or if the home has been the scene of a violent crime in the past five years.
   
   
10. A tenant should be provided with a condition report.
    
    The tenant should be provided two copies, one of which is for their records, the other is for the property manager. They should be given seven days in which to complete and return this form.

Do you have any "must know" facts from the Residential Tenancies Act? Share yours below.