On 23 March 2020 the Residential Tenancy Act and Regulations were amended to require tenants in premises to have 6 minimum standards. Even though in theory these standards appear sensible, it maybe having a detrimental impact on the residential market.
The area Leverage is most concerned about is the requirement that a landlord declare that the property is structurally sound. The regulation requires the agent to pick that all the seven minimum standards are satisfied.
Leverage has been in regional areas recently training CPD Courses. The agents have indicated in our courses that this requirement is reducing properties that can be tenanted.
Tenants are often happy to live in premises that don’t have a perfect structure. Provided they can afford the rent, the structural integrity of the property is not always important.
They also indicated that a number of properties have been removed from the market. This means that a number of properties which would constitute affordable housing have now disappeared. This means the affordable housing problems must now be handled by the government.
The NSW rental market is so intense that it is difficult to even find a property. Even those who have money are having difficulty finding a place to live. These changes to the legislation have reduced a number of properties that are available for people to live.
The best intentions of the government to stop shonky landlords may have caused a property crisis around affordable housing.