June 01, 2021
Property Management

Property Management – Discussing the Disclosure Statement

News & Insights
What is the Disclosure Statement? Why is it important? And how will recent legislative changes to this particular document impact current and new Residential Rental Providers?

Amanda Smith, Property Management Business Development, explains.

The Disclosure Statement is designed to streamline the process of ensuring the rental premises meets minimum residential standards by providing upfront information to the Renter. It forms part of the ‘Residential Rental Provider (RRP) Instructions’ documentation that must be completed by the RRP and provided to a Renter prior to signing the lease.

The changes aim to ensure Renters are provided important information, such as future plans to sell the property, before they move in. The previous process, where this information was not necessarily discussed beforehand, often created some issues for the Renter and RRP alike, and on occasion resulted in renters breaking their lease, or substantial work needing to be completed at the property in order to satisfy the Renters/Agents expectation, both legally and ethically.

The disclosure of this information ensues more transparency in matters that have been established, which can be of some concern.

The benefit for the Renter is they can feel confident before signing their Lease Agreement that they are aware of the specific conditions in which they will be residing in the rental premises. There will be no surprises relative to health concerns, matters that might make them feel unsafe, insecure and circumstances that might jeopardise their ‘quiet enjoyment’ at any time.

The benefit for the RRP is that they can anticipate that as a result of this transparency, there will be less chance of particular requests relating to the disclosed matters. This is likely to ensure they have selected the right Renter for their home, who is aware and comfortable with the conditions in which they will reside in the premises, and subsequently, contribute to them enjoying a tenancy that offers financial viability and longevity moving forward.

The process of completing the Disclosure Statement is incredibly straightforward and simply involves the RRP answering 19 additional (easy to answer) questions as they complete their ‘Residential Rental Provider Instructions’ documentation.  These 19 questions alone are shared with any pre-qualified Renter who has shown serious interest in leasing their investment property.

The Disclosure Statement forms part of the RRP’s new legislated responsibility when entering into a new Lease Agreement and we look forward to utilising it to our advantage, to ensure a smooth transition throughout each new tenancy moving forward.

To view the full changes to the Residential Tenancies Act visit the REIV website or contact the Marshall White Property Management Team for further details.

Should you require advice on any aspect of leasing your property, contact our Marshall White Property Management Team for assistance.

For more information contact us on (03) 9822 8711.