Important Legislative Changes that took effect on 30 September 2024

We previously updated you in our newsletter about the legislation changes effective 30 September 2024. We want to remind you of some important points that require your attention:

1. Water Rates Submission: If you currently receive your water rates directly, please ensure you forward them to LongView immediately. According to the new legislation, if we invoice tenants more than four weeks after receiving the invoice, they are not obligated to pay. Timely submission is crucial. Remember, we can also arrange for Urban Utilities to send the water rates directly to us at no extra cost. Please let your Property Manager know if you’d like us to set this up for you.
   
   
2. Lease Break Procedures: Following recent training, we have received updated guidance on how to handle tenants who break their lease in accordance with the new legislation. We will share these procedures with you below.

If the agreement is under 3 years, then the reletting costs will be the lower of:

• the amount of ‘reletting costs’ calculated under S357A; or 
• an amount equal to rent payable between the vacate date to the date the property is relet.

 

In summary, any lease entered into before 30 September 2024 will still incur break lease fees, which typically include one week's rent plus GST, marketing costs, and rent until a new tenant moves in.

For tenancies starting after 30 September 2024, we will manage lease breaks differently. We will request that tenants pay the maximum reletting costs upfront, as it’s not possible to determine the exact costs until the property is rented. Tenants may be entitled to a refund of a portion of this amount once the property is leased and the final costs are calculated.

This approach ensures that costs do not come from the bond, allowing us to reserve the bond for any necessary repairs during the vacate inspection.

However, a drawback is that landlords will likely still incur advertising and letting fees. Under the new legislation, tenants are only responsible for covering the vacancy period, not the costs associated with securing a new tenant.

If you have any questions or need further clarification, please don’t hesitate to reach out to your property manager.