Flat Chat Strata Forum Rental rants Current Page

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  • #10189
    berty
    Flatchatter

      I just got notified by the strata that they will be doing work on my balcony, and that it will be inaccessible for 8 weeks. The standard NSW tenancy agreement says (in clause 7.1) that “the rent abates if the premises are … partly uninhabitable”. Would being prevented from accessing my balcony make the premises be considered “partly uninhabitable”?

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    • #24092
      Jimmy-T
      Keymaster

        Given that a recent survey showed that tenants place a higher premium on having a balcony than even a car space, you certainly should claim a rent reduction for the period that the balcony is inaccessible.

        Erring on the conservative side, you could calculate the proportion of the floor space that is no longer available to you and then ask for a commensurate reduction in rent.

        Or you could estimate what you think the loss of amenity is worth, and claim on that basis.

        Either way, the sooner you make a claim, the better; if you go to Tribunal, it will probably date any rent reduction from when the claim is made.

        As a first step, go to the Tenants Union website and have a look at factsheets 04 and 06 which, although they don’t cover this specific circumstance, do offer guidance about how to make a claim.

        Then write a polite letter or email to the landlord requesting a rent reduction for the period that the balcony is not available. 

        The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
        #26814

        Hey Im having very similar problem. The balcony of apartment im renting wont be available for up to 12 weeks! I told them about rent reduction, but they said they see no reason for that… Any help would be appriciated

        #26815
        Jimmy-T
        Keymaster

          Keep a note of the first time you approached them about this.  If it was by telephone, write them a letter to say something like “Further to our telephone conversation of (whatever date) … I am seeking a reduction in rent for the period during which my balcony will be inaccessible.” 

          Keep it polite and to the point.  Suggest a figure if you want, probably based on the difference between apartments of a similar size in your area with and without balconies.

          Then politely say that while you have no wish to cause any ill feeling, you are prepared to take this to Fair Trading for independent arbitration, should that be necessary.

          If you are dealing with a rental agent, they are likely to go down the road that requires less hassle for them – and that could be just to recommend a rent reduction rather than have to deal with Fair Trading.

          If you are dealing with a private landlord, it could go either way but surveys suggest that private landlords are more responsive to tenants than agents are.

          If you do go to Fair Trading, be prepared to justify how important the balcony is to your lifestyle.

          However, bear in mind that there is a “no grounds” option for the landlord to terminate your lease when it comes up for renewal.

          The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
          #26816
          Lady Penelope
          Strataguru

            Playing “devils advocate” here I would be wary of this statement: ” “the rent abates if the premises are … partly uninhabitable”. The external balcony would not strictly be deemed to be a “habitable” space in the same way that a bedroom or a kitchen or a bathroom would be. 

            #26818
            Jimmy-T
            Keymaster

              @Lady Penelope said:
              Playing “devils advocate” here I would be wary of this statement: ” “the rent abates if the premises are … partly uninhabitable”. The external balcony would not strictly be deemed to be a “habitable” space in the same way that a bedroom or a kitchen or a bathroom would be.   

              Yes, but that is not the only basis on which rent might be reduced – it’s only stating this this as clear, unarguable grounds for a rent reduction.

              If the property was advertised as having a balcony it’s the same as if a car parking space was offered, then withdrawn.  A parking space is not a habitable area but you’d be demanding a rent reduction if it was taken away from you.

              The key to all this is how important the balcony is to Mateuidon’s enjoyment of his unit and its relative value as part of the apartment.

              And really, barring agreement, the next best thing to do is to go to mediation at Fair Trading.

              The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
              #26822
              Lady Penelope
              Strataguru

                Further to JT’s comment ….. If the Tenant is given a rent reduction by the Owner  for common property balcony repairs then the Owner should be able to claim this deduction from the OC’s insurance. 

                The owners corporation is responsible to repair the damage to the building, and pay compensation, no matter that it is not at fault.

                “In the NSW Court of Appeal decision of The Owners SP 35042 v Seiwa Australia Pty Ltd [2007], the owners corporation was ordered to pay the landlord $150,000 as compensation for loss of rent for 30 months until the repairs were completed. The premises were a top floor penthouse in North Sydney with a roof top terrace. It was vacant because it was not habitable until repairs to the membrane and the steel railings around the roof top terrace were completed.” (Extract from https://www.propertyinvestmentlawyer.com.au/renting_part6_Strata%20Renting.htm)

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