How are Property Investors and Tenants Protected if a Property is Flooded?

What Protections do Landlords or Tenants Have if the Property is Flooded?

The recent flooding in NSW has caused crisis amongst many Australians since February this year. NSW Fair Trading has provided protections for both tenants and landlords for their properties that have flood damage and are deemed partially, or fully uninhabitable. These protections also apply if the property is damaged by natural disasters such as bushfires, floods or storms.

When the property is fully uninhabitable

In the instance of a natural disaster and the property is fully uninhabitable, the tenant has the following rights:

- Mutually with the landlord, can Immediately end the tenancy agreement with written termination notice

- Move out temporarily and return when repairs are finished

- Ask for a rent reduction which must be in writing and agreed too. (Tenant must still pay rent otherwise this is a breach in tenancy)

The landlord has the following rights and responsibilities if the property is uninhabitable by flood damage:

- Mutually with the tenant, can immediately end the tenancy agreement with written termination notice

- Must notify the tenant if they are planning to dispose their belongings if abandoned according to the Uncollected Goods Act 1995

- The landlord is not obliged to compensate the tenant for damage to their belongings

When the property is partially uninhabitable

The tenant has the right to:

- Live at the property if the repairs are minor and if there are no safety risks

- Ask for partial rent reduction in writing

- Formally end tenancy agreement and resign after the repairs are completed

The NSW Government has provided the flood recovery rental support for those who require emergency accommodation. It is a one-off payment for bookings made from the 22nd of February 2022. The payment provides amounts that are variable to the amount of people that are in the household, from $6,000 to $18,000.

This financial assistance is only eligible in the following circumstances:

- They are over the age of 18

- The property must be their primary residence

- Unable to claim temporary accomodation costs under insurance policy or when insurance does not cover the full length of accommodation needs

- Live in highly impacted suburbs caused by the recent flooding, or in LGA such as: Ballina, Byron, Clarence Valley, Kyogle, Lismore, Richmond Valley or Tweed.

For more information, visit: https://www.nsw.gov.au/floodswww.nsw.gov.au/floods

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