National Occupational Licensing System Dumped

On 13 December 2013, the Council of Australian Governments decided that the proposed policy for National Occupational Licensing System (NOLS) should no longer be pursued. This comes as a relief to many throughout the industry who believe a better option exists.

After discussions with the State governments, several concerns surrounding the NOLS model arose. If a policy for NOLS was pursued, there would have been significant costs for the governments and occupations involved so the jurisdictions encouraged that alternative approaches be sought.

An new alternative plan for labour mobility will be particularly beneficial for real estate professionals that live near the borders of two states as it will allow licensees to operate in any state of Australia using just the one license, rather than having to pay a fee or apply for additional licenses.

The NSW government is working alongside the other States to ensure a system is implemented, and the framework is likely to be similar to how the driver’s license system operates.

Stay tuned for more information on this as it develops.

The Rise of Long-Term Renters

As we have seen the number of Australians who own their home decline over the last decade, we continue to see a rise in the portion of the population who are renting long term – renting for a continuous period of 10 or more years.

Here are some quick stats on the current long-term rental landscape:

• In the last decade, the percentage of people renting compared to owning a house has risen from 18.4% to 25.1%.
• $347 is the average amount a household can expect to pay on housing per week – which is 19.7% less than homeowners with a mortgage pay per week.
• The average renter spends 20% of their gross income on rent.
• 10 years ago, around 27% of renters had been renting for 10 years or more. Today, 33.4% of renters have been renting for 10 years or more.
• 31.8% of people feel they need to rent for longer periods of time to save for a larger house deposit.
• The number of middle-aged Australians renting long-term continues to increase.
• More and more families are occupying rental properties, whilst the number of single person rental households is declining.
• A significant proportion of people who rent don’t feel a sense of community in the area they live, and are less satisfied financially.

What does this mean for property managers?These statistics highlight how important it is to value and take care of your tenants, rather than viewing them as dispensible. If tenants are frequently moving in and out, a property is going to experience a lot more wear and tear.

Property managers should encourage their landlords to find long-term tenants and keep the positive aspects of not having a vacancy in mind when considering when and how often to raise the rent.

CTTT to Become Known as NCAT

As of January 1 2014, the Consumer, Trader & Tenancy Tribunal (CTTT) will become NSW Civil and Administrative Tribunal (NCAT).

CTTT is currently composed of 23 separate NSW tribunals and this system can be quite confusing. NCAT seeks to integrate these existing tribunals to provide a single gateway in an effort to improve the accessibility, efficiency and accountability of the tribunal system and increase the public’s confidence in these services.

To ensure NCAT can meet the needs of Tribunal users, it will consist of five divisions – consumer and commercial, administrative and equal opportunity, occupational and regulatory, guardianship and victim support. This is a response to the challenge which has been maintaining consistency and transparency across over 30 tribunals whilst still providing quality service.

CTTT have announced that any matters which have been lodged with them and not heard before January 1^st do not have to be relodged with NCAT, and any the resolution of any matters currently in progress will not be affected.

For further information visit: http://www.tribunals.lawlink.nsw.gov.au/

Free Tenancy Dispute Resolution Service for NSW

NSW tenants, landlords and property managers can now utilise a free tenancy dispute resolution service which aims to resolve residential tenancy disputes rather than having them heard by the Consumer, Trader and Tenancy Tribunal (CTTT) which will be known as the NSW Civil and Administrative Tribunal (NCAT) as of 1^st January 2014.

Areas where Fair Trading is able to assist in resolving disputes includes:

• repairs and maintenance
• non-urgent health and safety issues
• alterations and additions
• access to the premises including inspections
• non-compliance with the tenancy agreement
• water saving devices and smoke alarms
• provisions of correct notices
• ending a tenancy
• breaking a lease, and
• condition reports

Rather than have parties go through the standard initial conciliation process at tribunal, this new resolution service seeks to resolve disputes through a teleconference or onsite meeting. This method relies on the co-operation of both parties and their willingness to reach an agreement out of court – Fair Trading recommends that parties involved in a dispute are open to various suggestions of how to settle the dispute.

In any instance where Fair Trading cannot help the parties reach a mutual agreement in regards to the resolution of their dispute, either party can lodge a claim with NCAT. Additionally, NCAT will continue to deal with all other areas of residential tenancy that Fair Trading does not handle.

Visit the Fair Trading – Residential Tenancy Disputes page, or call 13 32 20 for more information about the free dispute resolution service.