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Phase 2 of RTA Reforms Effective from 29 July

Posted by Empire Property on 16/07/2024
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Starting 29 July, Phase 2 of the RTA reforms will be implemented, introducing several key changes including a 12-month limit on rent increases, new regulations regarding pets, minor modifications, and an updated dispute resolution process.

Review the New Regulations

The regulations have been published and are available for review before their implementation.

12-Month Limit on Rent Increases

From 29 July, rent increases for periodic tenancies will be limited to once every 12 months, even if a 60-day notice has already been issued. For fixed-term tenancies, this rule will apply at the end of the current lease term. Leases signed before 29 July can still include six-month rent reviews, which will remain enforceable.

Pets and Minor Modifications

Most tenants will be allowed to keep pets and make minor modifications, subject to landlord approval. Tenants must use an approved form to seek permission, and landlords are required to respond within set timeframes.

Minor Modifications Include:

  • Picture hook
  • Screw for wall mounts, shelves, or brackets
  • Wall-anchoring device
  • Water-efficient or hand-held shower head
  • Lever-style tap
  • Security light, alarm system, or security camera
  • Wireless doorbell
  • Window coverings
  • Adhesive child-safety locks on drawers or doors
  • Pressure-mounted safety gates
  • Locks on gates or letterboxes
  • Child-safety devices on windows
  • Draughtproofing
  • Telephone or internet connection
  • LED light bulbs (not requiring new fittings)
  • Anchors for blinds or cords
  • Non-permanent window film
  • Flyscreens for doors or windows
  • Vegetable or herb gardens
  • Painting a room

Landlords may require certain modifications, such as the installation of lever-style taps, hardwired alarm systems, or security lights, to be carried out by qualified professionals. Additionally, landlords can request invoices for the work done. REIWA successfully advocated for the inclusion of professional painting in these conditions.

Note: Changes to the pet bond scope will take effect in early 2025 with the new bonds disposal process.

Dispute Resolution Process

Disputes regarding minor modifications and pets will be handled by the Commissioner for Consumer Protection. The Commissioner will review submissions and may request additional information before making an independent decision. A dedicated team at DEMIRS has been established to handle these disputes promptly.

Both landlords and tenants have seven days to appeal the Commissioner’s decision to the Magistrates Court. The Commissioner also has the authority to refer disputes directly to the court.

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