There have been some changes to the Residential Tenancies Act (RTA)
The biggest one is that tenants are now liable for a certain amount if they cause accidental damage. Previously landlords have been left to foot the bill if tenants accidentally put a hole in the wall, for instance, or stained the carpet.
Now, though, tenants will be liable for the cost up to the equivalent of four weeks’ rent or the landlord’s insurance excess, whichever amount is lower. This is a major step in helping to protect landlords against careless tenants and it’s great news for keeping your repair costs under control.
This new rule means tenants need to know upfront how much of an excess they might be expected to pay if they cause damages. Every property owner must now provide their insurance details in new tenancy agreements, including:
- Whether the property is insured
- How much the insurance excess is
- The insurance policy document, if the tenant asks for it
This is a great opportunity to review your insurance, including rethinking how much excess you have on your policy. If you have any questions, one of our expert property managers is always keen to help, so get in touch.