The ACT Government has implemented significant changes to the Residential Tenancies Act, aimed at enhancing disclosures and improving standards for rental properties. While some of these updates have been in effect since earlier this year, further changes came into force on 10 December 2024. As a landlord, it’s essential to understand these new requirements to ensure compliance.
Key changes you need to know
Among the recent legislative updates, landlords are now required to provide a Unit Titles Rental Certificate to new tenants as part of their lease agreements. This certificate, governed by the Residential Tenancies Act and the Unit Titles (Management) Act, includes a range of critical disclosures to tenants.
Here’s what the Unit Titles Rental Certificate must include:
- Owners Corporation Rules
A copy of the Owners Corporation rules must be provided to tenants. - Ceiling Insulation Information
- If your property is a top-floor apartment without another apartment above, you must disclose whether ceiling insulation is installed.
- If the Owners Corporation doesn’t currently know this information, it is required to obtain and provide it by 1 July 2025.
- An updated certificate must be issued to anyone who requests it once this information is available.
- Swimming Pool Details
If the property has a pool, you must include a copy of:- A Swimming Pool Disclosure Statement,
- A Barrier Compliance Certificate, or
- A Certificate of Occupancy and Use (if the pool was built within the last five years).
- Embedded Electricity Networks
- Details of any embedded electricity networks in the building, including contact and website information for the supplier, must be disclosed.
- Other Utility Services
- If there are limitations on supplier choices for utilities (e.g., gas hot water, internet, or natural gas supply), these must also be disclosed.
Additional guidelines and fees
To avoid confusion, here are some important points to consider:
- Applicability:
If your property is not rented or leased, there is no requirement to obtain a Unit Titles Rental Certificate. - Fee for Certificate:
A $332 fee (set by the Minister) applies for each Section 119 Rental Certificate. This fee is payable by the unit owner. - Certificate validity:
- Rental Certificates are valid for five years, unless ownership of the property changes.
- They are specific to each unit and cannot be transferred.
- When to obtain the certificate:
You must obtain a Rental Certificate before entering into a new Residential Tenancy Agreement or renewing an existing tenancy agreement from 10 January 2025 onward.
Understanding insulation requirements
If your unit is located on the top floor of an A-Class development, additional insulation-related requirements apply:
- Information to provide:
You must include insulation details in the Rental Certificate, such as the R-rating (a measure of thermal resistance). - How to obtain insulation information:
- Check your own records or the Contract of Sale (e.g., building reports).
- If this information isn’t available, the Owners Corporation may need to inspect the ceiling cavity to assess the R-rating. This could cause delays, so it’s recommended that owners and property managers provide any existing information promptly.
- Compliance responsibility:
It remains the unit owner’s obligation to ensure the rental property complies with the ceiling insulation standard, unless an exemption applies.
The Owners Corporation is not responsible for installing insulation but must include available information in the Rental Certificate.
Preparing for these changes
As a landlord, staying informed and organised will help you meet these new legislative requirements. Ensure you:
- Obtain a Unit Titles Rental Certificate well in advance of entering or renewing a lease.
- Provide accurate and complete disclosures to tenants.
- Collaborate with your Owners Corporation to gather the required information, particularly regarding insulation.
Non-compliance could lead to delays in leasing your property and potential penalties. If you’re unsure about your obligations, please feel free to reach out to us for assistance.
Stay proactive to ensure your property remains compliant and attractive to potential tenants under these new regulations.