Leasing in community titles schemes

AccomNews Wednesday, June 19, 2013

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Knowing your legislative responsibilities is critical to making the right decision, and taking the right action, regarding the lease of a residential lot in a community titles scheme.

It is also a key to avoiding disputes. Whether you are a body corporate committee member, letting agent, owner or tenant, the Queensland government has a range of free information sources to help you stay informed and up-to-date about the requirements of:

• the Body Corporate and Community Management Act 1997;

• the Property Agents and Motor Dealers Act 2000; and

• the Residential Tenancies and Rooming Accommodation Act 2008

The Office of the Commissioner for Body Corporate and Community Management provides a free information service regarding the BCCM Act and its associated regulation modules. The information service can be contacted on freecall 1800 060 119 or by emailing [email protected]. Alternatively, our entire range of information products can be accessed at www.justice.qld.gov.au/bccm.

The Office of Fair Trading has compiled a wide range of information about property management at www.fairtrading.qld.gov.au/property-management.htm. Owners who have leased, or are thinking about leasing, their lot may be particularly interested in learning about the maximum fees for residential and holiday letting, the process to appoint an agent, and the responsibilities of letting agents under the PAMD Act. The Office of Fair Trading is contactable on 13 74 68.

The Residential Tenancies Authority has also made available on its website at www.rta.qld.gov.au relevant factsheets and online services for lessors, agents, managers and tenants regarding the provisions of the RTRA Act. The Residential Tenancies Authority can be telephoned directly on 1300 366 311.

A list of some of the responsibilities imposed by the legislation

Bodies corporate:

• must not prevent a lot owner from leasing a lot;

• must ensure that by-laws and any internal policies do not discriminate between owner-occupiers and tenants, or between long-stay and short-stay tenants, or between types of occupiers;

• cannot restrict the type of residential use of a lot that may lawfully be used for residential purposes;

• cannot require the letting agent to provide information on private letting arrangements for individual lots; and

• cannot require a letting agent or owner to evict a tenant or terminate a lease.

Letting agents:

• must hold an appropriate license under the PAMD Act to carry on a letting agent business;

• must carry out their duties in accordance with their authorisation and individual contract agreements with each lot owner;

• must not engage in misconduct, or be grossly negligent, in carrying out their obligations;

• must give the tenant a copy of the current body corporate by-laws when the written agreement is given to the tenant for signing;

• must comply with the Code of Conduct for Letting Agents under schedule 3 of the BCCM Act; and

• (dependent upon their license) must comply with the code of conduct in the Property Agents and Motor Dealers (Restricted Letting Agency Practice Code Of Conduct) Regulation 2001.

Owners:

• must give written notice to the body corporate of the appointment or termination of a letting agent or real estate agent to lease the lot, including details of the agent;

• must give written notice to the body corporate when the lot is leased for a term of six months or more, including details of the tenant/s; and

• (if an agent has not been appointed) must give the tenant a copy of the current body corporate by-laws when the written agreement is given to the tenant for signing.

Tenants:

• must comply with body corporate by-laws; and

• must comply with the terms of their lease.

Please note that this list is not exhaustive and that the legislation should be consulted as the primary source.