• List of items to be repaired - A list of items that will need to be repaired before occupation .
• Authority Bodies Contact Details - Any applicable details of Homeowners ’ Associations ( HOA ’ s ) or Bodies Corporates ( BC ’ s ).
• Rates , Levies & Prepaid Electricity details - If the property is fitted with a prepaid electricity metre it must be noted if there are details of any outstanding municipal rates and levies which could be liable for penalties which can impact the cost of electricity if in default
• Mandatory Disclosure Forms must include signed Agreement -The signature of the landlord , tenant , and rental agent ( where applicable ) is necessary to record this .
What are the consequences of not having a Mandatory Disclosure Form ?
If there is no signed Mandatory Disclosure Form as part of the lease agreement , the law will assume that no defects were disclosed to the tenant . Both landlords and their authorised rental agents could face serious fines if they are found to have neglected their disclosure obligations . The Rental Housing Tribunal takes tenant rights very seriously , and that includes the right to make fully informed rental decisions .
What are the benefits of Mandatory Disclosure ?
The benefits of Mandatory Disclosure are fairly obvious for tenants – no more being blindsided by hidden property defects that could impact your ability to enjoy your rental property . Mandatory Disclosure Forms also offer benefits to landlords . Benefits that go well beyond merely staying on the right side of the law .
It ’ s actually really useful for landlords to have an up-to-date document on their property ’ s condition , It helps budget appropriately for repairs and maintenance , it makes it easier to substantiate rental escalation decisions , and it helps determine the property ’ s market value and overall investment performance .”
About the author
Jacqui Savage is the National Rentals Manager for the Rawson Property Group
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