Interest rates down, tenants pets rights up

Two big pieces of strata news: interest rates are easing and stronger tenancy laws came into effect from May 19 in NSW.

The Reserve Bank slashed interest rates to 3.85 per cent, which means the median mortgage-holder with a $600,000 debt pays about $90 less per month in interest repayments.

And the new tenancy laws – which are part of a bigger overhaul to improve renter rights – began earlier this week to:

• end no grounds terminations for landlords
• make it easier for tenants to keep pets
• ensure tenants can pay rent by bank transfer.

For strata schemes and committees, it might be a reminder to ensure rules related to pet ownership are clear.  

Pets have long been a contentious issue in strata, but there’s no avoiding them in NSW anymore.

Renters can now ask to keep a pet, and landlords must respond within 21 days, according to the NSW Government.

A landlord can only refuse if:

• There would be too many animals,
• The property isn’t suitable (for example, no fencing),
• The animal could cause damage,
• The landlord lives at the property,
• The pet would break laws or by-laws,
• Or the renter refused a fair and reasonable condition (like regular cleaning).

Landlords can’t charge extra rent or bond for pets. And strata can’t ban pets outright – blanket pet bans are not valid.

New bank transfer payments – less fees, riskier for scams

The payment by bank transfer is an interesting reform – it will mean an end to renters being slugged with pesky bank or payment fees on top of their rent.

However, bank transfers are also a risky payment method, with scammers and mule bank accounts misdirecting payments using ‘invoice swapping software’ and other malicious cyber-enabled techniques.

The Consumer Action Law Centre says bank transfers represented 44.5 percent, or $141.7 million, of losses reported to Scamwatch in 2024.

Payment redirection scams went up by 66 percent in 2024 – a reminder that if you’re switching to direct bank transfer, always do a small $1 or $2 transfer first, check the correct person has received the money and then transfer the balance of the money after confirming the payee over the telephone.