Rental and Tenancy Updates
Notice periods: Month-to-month/periodic tenancy rules apply where tenants must give 28 days’ notice to leave the property and landlords must give their tenants 48 days’ notice if they intend to sell, move into the property or carry out major renovations. The government’s new proposed notice periods will change this to 21 days for tenants and 42 days for landlords.
Mortgage interest deductibility: This is the ability for landlords to deduct the interest they pay on their mortgage as a business expense thereby reducing their taxable income. The government announced on 10 March 2024 that as of 1 April 2024, landlords may claim back 80% of their interest for this purpose. The announcement also confirmed that from 1 April 2025 mortgage interest deductibility will increase to 100% of interest.
Ninety day no-cause evictions: The government’s restoration of no-cause evictions is another major change on the horizon. Landlords will no longer have to provide tenants with an explanation as to why they have been evicted if they give tenants 90 days’ notice to leave their property.
Pet bonds: The introduction of pet bonds will allow landlords to require tenants to pay a higher bond, rather than four-weeks’ rent if they intend to have a pet on the property. Damage caused by pets would then be deducted from the bond for the repairs to the property.
These changes to the status quo for residential tenancies will have significant impacts for landlords and tenants alike. The government has not, however, indicated when legislation will be introduced on all the above issues.
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