The Residential Tenancies Amendment Bill, currently making its way through Parliament following the Social Services and Community Committee review, has generated considerable buzz about the return of 90-day no-fault terminations. However, as with most things in tenancy, there is always a trade-off, and it is not all sunshine and roses for landlords.
“While the bill proposes to restore certain landlord rights, it does so with carefully considered checks and balances,” says APIA General Manager Sarina Gibbon. “The extended timeframe for exemplary damage applications for retaliatory termination means that the restoration of landlords’ termination rights will come with increased accountability. This is exactly how it should be.”
Preparing for Changes to Termination Rights
The key proposed change is the extended timeframe for tenants to seek exemplary damages for retaliatory termination. Currently, tenants have just 28 days to challenge a termination they believe is retaliatory. Under the proposed provisions, while the window to have a termination set aside would remain at 28 days, tenants would have 12 months to seek exemplary damages of up to $6,500 if they can prove the termination was retaliatory.
If passed, the amended legislation will make termination processes more expedient, but this shouldn’t be misinterpreted as making terminations “easier.” The strengthened provisions against retaliatory termination would require landlords to be more vigilant than ever in their decision-making processes.
“This is about ensuring that any increased flexibility for landlords comes with appropriate safeguards,” Gibbon explains. “Professional landlords should welcome these changes – they protect the integrity of the rental sector while respecting property owners’ fundamental right to make decisions about their investments.”
What This Means for Landlords
If the bill passes, the extended timeframe will create a longer period of potential liability. Before issuing any termination notice, landlords should:
- Document Everything: Maintain clear records of all tenant interactions, property issues, and decision-making processes
- Consider Timing: Be particularly careful about issuing termination notices shortly after tenants have exercised their rights
- Seek Professional Advice: Consult with property managers or legal professionals if unsure about a termination decision
- Review Previous Interactions: Consider how recent interactions with tenants might be interpreted in a retaliatory termination claim
“The success of these new provisions relies heavily on landlords understanding and respecting the spirit of the law,” notes Gibbon. “The 12-month window for exemplary damages isn’t meant to catch out well-meaning landlords – it’s designed to ensure that termination rights aren’t used to punish tenants for asserting their legal rights.”
Common Risk Scenarios
Termination notices issued after any of these scenarios require particular care:
- Tenant complaints about maintenance issues
- Rent increase disputes
- Tenant communications with Tenancy Services
- Health and safety compliance matters
- Disputes about property access
Urgent Review of Property Management Agreements Needed
“Both landlords and property managers should start reviewing their management agreements now,” urges Gibbon. “The proposed 12-month window for exemplary damages creates significant implications for ongoing liability that current agreements may not adequately address. As a landlord, you’ll want to be clear about where responsibilities lie.”
Key considerations for agreement reviews:
- Clear understanding of your rights and obligations as a landlord
- Documentation processes that protect your interests
- Clear protocols for handling claims that arise after a property manager’s engagement ends
- Understanding your liability protection if you follow property manager advice
- Clear record-keeping requirements that safeguard your position
- Clear understanding of who represents you at Tribunal proceedings
“Property managers would be wise to document if they advised against a termination, and landlords should ensure their agreements clearly spell out how such situations will be handled,” Gibbon notes. “As an organisation representing landlords’ interests, we recommend having extremely clear documentation processes in place to protect your position.”
Recommended Agreement Updates
As a landlord, ensure your management agreements address:
- How records will be maintained and accessed during the full 12-month liability period
- Clear processes for handling claims that arise after a management agreement ends
- How liability is shared between you and your property manager
- Documentation requirements for termination decisions and advice
- Who bears the cost of potential Tribunal proceedings
- Your rights if a property manager seeks to be excused from proceedings
“Remember, while property managers are your agents, they also need to protect their professional positions,” notes Gibbon. “As a landlord, you want agreements that balance your right to make decisions about your property with clear protocols for documenting and acting on professional advice.”
Moving Forward
The anticipated return of 90-day no-fault terminations, expected to be voted on before Christmas, would not mean a return to casual termination decisions. It is important for landlords to understand your rights and responsibilities under the proposed changes.
“These proposed changes represent a significant shift in how termination liability will work,” Gibbon concludes. “Landlords need to start preparing now, particularly in reviewing and updating management agreements to ensure their interests are protected while maintaining professional standards in their rental operations.”
Resources for Members
“The Tenancy Tribunal’s approach to retaliatory termination cases continues to evolve,” Gibbon observes. “With these proposed changes, landlords and property managers will need to upskill accordingly. We’re updating our training resources to help landlords navigate these changes confidently and professionally.”
Understanding these new provisions isn’t optional – it’s essential for protecting your investment and avoiding costly penalties. APIA members can access our training videos on retaliatory termination here and here. The videos cover:
- Detailed explanation of what constitutes retaliatory termination
- Real life examples and case studies
- Best practices for documentation
- Risk mitigation strategies
- Tribunal preparation and responding to adversarial claims
Not a member yet? Join APIA today to access these essential resources to protect your property investment.
This article is intended as general information only and should not be taken as legal advice. For specific guidance about your situation, please consult a legal professional.
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