The Residential Tenancies Amendment Act 2024 introduces measures that affect both landlords and tenants. The Act restricts rent increases to once every 12 months from 31 October 2024 and requires landlords to provide valid reasons when terminating a tenancy. This article examines the implications of the Act for both parties and outlines the changes that legal practitioners should be aware of when advising clients.
Rent Increase Restrictions under the Residential Tenancies Amendment Act 2024
Under the Act, rent increases are limited to one instance within a 12‐month period. This statutory requirement aims to provide greater certainty for tenants regarding their rental expenses. In the past, rent increases could occur more frequently, potentially leading to rapid cost escalation. The amendment under the Act compels landlords to plan and justify any adjustment in rent well in advance. Non‐compliance with this provision may lead to disputes or enforcement actions by the relevant authorities.
Termination of Tenancies
The Residential Tenancies Amendment Act 2024 introduces a requirement that mandates landlords to provide valid reasons for terminating a tenancy. Previously, termination could occur without the need for a detailed explanation. Under the Act, landlords must demonstrate that there is a legitimate ground for termination. Valid reasons may include breaches of the tenancy agreement, non‐payment of rent, or other specified circumstances outlined in the Act. This requirement aims to protect tenants from arbitrary eviction and promote fairness in the rental market.
Implications for Landlords
The new provisions under the Act have several implications for landlords. Compliance with the Act will require a thorough review of existing lease agreements to ensure that any rent review provisions do not conflict with the new statutory framework. Landlords are expected to update tenancy agreements and revise rent review processes accordingly. In addition, maintaining comprehensive records and documentation to substantiate the grounds for termination is crucial under the Residential Tenancies Amendment Act 2024. This record‐keeping is essential to support decisions in the event of disputes and to demonstrate compliance with the new procedural safeguards.
Implications for Tenants
Tenants benefit from the enhanced protections provided by the Residential Tenancies Amendment Act 2024. The limitation on rent increases offers tenants greater predictability regarding rental costs. Furthermore, the requirement for valid reasons when terminating a tenancy enhances security by reducing the likelihood of arbitrary eviction. Tenants should familiarise themselves with the grounds on which a landlord may seek to terminate their tenancy as set out in the Act. Awareness of these rights is crucial in ensuring that tenants can effectively challenge any termination decisions that do not adhere to the statutory requirements.
Legal Considerations under the Residential Tenancies Amendment Act 2024
Legal practitioners have a key role in assisting both landlords and tenants during the transition to the new legislative framework introduced by the Residential Tenancies Amendment Act 2024. Landlords must ensure all contractual arrangements and internal processes align with the Act. They should seek legal advice to navigate complexities when updating tenancy agreements and addressing conflicts with existing leases. Landlords should inform tenants of their rights under the Act, including limitations on rent increases and valid grounds for termination.
Conclusion
The Residential Tenancies Amendment Act 2024 represents a significant shift in the regulation of residential tenancies. By restricting rent increases to once every 12 months and mandating that landlords provide valid reasons for termination, the Act offers enhanced stability and protection for tenants while imposing new responsibilities on landlords. Both parties must review their current practices and seek legal guidance to ensure full compliance with the Act. The reforms are likely to foster a more balanced relationship between landlords and tenants and contribute to a fairer rental market.
Jake McKinley notes that this article is written for the purpose of providing generalised information and not to provide specialised legal advice. If you require qualified legal advice on anything mentioned in this article, our experienced team of solicitors at Jake McKinley are here to help. Please get in touch with us on 02 9232 8033 today to make an enquiry.
