REINSW advises tenant and landlord collaboration in event of flooding

26 OCT 2022 By Kyle Robbins 9 min read Hotspots

With 14 flood warnings imposed by the Bureau of Meteorology at the time of writing, the Real Estate Institute of NSW (REINSW) has released a toolkit that offers guidance and advice to tenants and landlords.

flood Brisbane qld suburbs spi

Officially Australia’s wettest recorded year, 2022 has created unprecedented levels of damage across the country, and with a third consecutive La Niña confirmed to loom large throughout summer, relief is far from guaranteed.

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Included in the REINSW’s toolkit is a section for property managers and tenants related to what NSW Fair Trading has to say regarding flood-related property issues, including damage and evacuation.

When the property is uninhabitable

In the event the property is wholly or partly uninhabitable, there is a range of options available, including:

  • Ending the tenancy, with either the tenant or landlord able to provide written notice of termination effective from the date of the notice. Where the parties agree the property is partly or wholly uninhabitable or cannot be lawfully used, the tenancy ceases. Should there be a dispute, the tenant or the landlord may apply to the NSW Civil and Administrative Tribunal for a resolution.
  • Once the property is repaired, the tenant and the landlord can choose to enter into a new tenancy agreement.
  • Landlords and tenants also have the option to maintain the tenancy while waiving all rent due during the period the property is uninhabitable. This agreement should be in writing.
  • If a tenant leaves the property and is unable to take their goods with them, landlords cannot dispose of belongings before notifying tenants. The Uncollected Goods Act 1995 gives the person in possession of the goods the right to dispose of them.

When the property is damaged but inhabitable

Landlords and tenants can negotiate a rental reduction to compensate for the damaged section of the property that cannot be used. Goodwill should be used here with a reasonable amount of rent reduced.

All agreements should be in writing, as should the day when the rent will revert to its standard levels.

When the tenant has been evacuated from the property

In the event this occurs, landlords and tenants are encouraged to negotiate a waiver of rent during the period in which the property cannot be accessed. Again, any agreement should be in writing.

Temporary accommodation

Landlords are not responsible for the cost of temporary accommodation for a tenant during the period when a property is uninhabitable. In the event the property is uninhabitable and a tenant opts to continue the tenancy, rent should be waived during the period in which the property cannot be lived in.

 

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