Important things to know about adding fixtures or making structural changes in a rental property

Good morning everybody and welcome to today's RTA webinar. My name is Mark Fidler and with me today is Cassie Chow. Morning Cass. >> Good morning Mark and good morning to everyone who's joined us today. We're happy to have you here. >> Yeah, thank you very much for coming along. >> [gasps] >> So today if I can get my system working properly before we do start I would just like to >> [clears throat] >> acknowledge the traditional owners and custodians of this country and pay our respects to all traditional owners and to their elders past, present and future. So as I mentioned, my name is Mark and joining me today as I said is Cass. Both of us are senior community education officers at the RTA. And both of us actually started our careers in the customer experience business unit. We've both worked in our contact center and Cass has also spent a bit of time in our in-house learning and development team. My other experience here at the RTA has been in our front line support team and certainly in our bond transaction processing team. And I have been with the RTA for about 20 years. So today we're going to have a look at the process of requesting the addition of fixtures or making structural changes to a rental premises. Now I appreciate that that is a mouthful so we'll probably hear us referring to adding fixtures or making structural changes as we go along. We will look at the tenant requirements in requesting a change and what options the property manager or owner has when responding including approving with conditions. We'll also look at what options a tenant has if a request is denied and discuss how property manager or owner can treat an unapproved change. We will finish up with some information about the Queensland disability network and Queensland Government campaign around accessible the accessibility changes in a rental property as well as the Queensland Government solar rebate program. So as we go along, we would encourage you to submit any questions into the webinar chat. So and we'll have a look at those. Uh we'll be focusing on questions that are relevant to the topic. We know that through these webinars at times we get questions that sort of cover all different tenancy matters. But we will be looking to cover anything that is relevant to what we're talking about today. And before we do start, as is up on the screen there, um our information is for general advice. We can't provide you with legal advice, but we would encourage you to refer to the act or seek your own independent legal advice if you need it responses to a specific situation. So looking at what are fixtures and structural changes? So as I said, um we will look at the process required to be followed. But let's just have a quick look. What exactly are we talking about when we mention fixtures or structural changes? So those the definitions are set out on the slide and they're by no means exhaustive in regards to the examples that we've got up there, but they should give you an idea of the sorts of things that are covered. I also want to point out a couple of things here just in regards to what is covered. So you'll see there on the slide that we make reference to general tenancies of movable dwellings and also rooming accommodation agreements. So this process is pretty much identical for all types of tenancies. So we won't throughout the throughout the presentation today we won't be making reference specifically to you know rooming or movable dwelling. When we talk about this process, we talk about it that that covers all of those particular things. The one thing though that we will mention that if tenants in a movable dwelling park or residents in um rooming accommodation agreements, their ability to request can be limited by what is written into park rules or what is written into house rules. Uh in regards to the particular property that they're in. So, if there is a house rule, for example, in rooming accommodation that says that, you know, you can't add fixtures, uh then obviously any request is going to be or has the potential to be denied on those um on that on that house rule. And the other thing today, too, is I'm going to refer to the managing party um when we're talking about either the property owner, the property manager, or the provider just to make it a little bit easier. You'll see on the slides that we refer to property managers, owners, or providers, uh but I'll be talking about managing parties, so just so everyone's aware there. So, let's have a look. So, in regards to making a request, so if a tenant decides that they want to add a fixture or make change, then they must fill out a form 23. Now, this is a request for approval to attach fixtures or make structural changes form. So, this form's available on our website uh and it must be filled out and submitted to the property manager, owner, or provider, and I've just broken my own rule. So, it is a breach of the agreement to add a fixture or make a change without approval, and we will discuss the implications of doing this a little bit more later in the presentation. So, we do recommend for any tenant or resident that is filling out this form that they provide as much detail as possible on the form, including the reason for requesting the change. Now, this might be as simple as requesting to put some hooks up to hang some pictures to brighten up a room. Uh, but it might also be a request to uh, add a grab rail in a shower for accessibility and safety. So, be sure to document the reasons clearly and provide the property or the the the managing party uh, with a clear understanding of what's being asked for and why. Now, we have produced a flowchart setting out and explaining the steps in this process and this is available on our website uh, along with other information about making a request. So, we encourage you if you are looking to follow this process uh, that you jump in and have a look at that flowchart. And also read the information that's on the form 23. Uh, there's a fair bit of detail on there. Um, so, fill it out thoroughly and be aware of what the steps are moving forward. So, Cass, now that the managing party uh, has received a request, what happens next? >> Well, Mark, um, under the legislation, once a request is received, the managing party has 28 days to respond. Uh, the tenant and managing party uh, can agree in writing to extend that time frame, but if that doesn't occur, then the 28 day time frame does remain in place. Um, and there are effectively four results, you could say, uh, that a tenant may receive. So, the request could be approved as is. Um, it could be approved with conditions. It could be denied or the tenant may receive no response within within that 28 day time frame. Now, we are going to go into a bit more detail about each of these options over the next few slides, but I just like to highlight that the legislation is clear that when considering a request from a tenant that the managing party must not act unreasonably in refusing the request. >> Thanks for that, Cass. Now, you said four possible results. We mentioned park and house rules earlier. Do body corporates impact in a thing when it comes to this process? >> Well, they do, Mark. Um but actually you're you're getting a little bit ahead. Uh let's look at the next slide and see what that tells us. So, everybody, what we see here is page three of the form 23 that Mark mentioned earlier. It now it might look a bit small on your screen, um but as we did mention earlier, the form is available on the RTA website, and you can use the link that I dropped into the chat earlier to have a look at it now um with us if you like. So, this is uh this page three is the one where a managing party who has received a request can provide their response. Now, we mentioned a moment ago that approval could be given as is. So, the managing party could simply fill out their section of the form appropriately and return it to the tenant saying that the request is approved. However, managing parties may also set conditions when approving. So, Mark is going to go through what those conditions can be in a moment, everyone. But if approval is granted with conditions, the conditions must be stated clearly on the form before it's returned to the tenant. The tenant then needs to agree with these conditions before proceeding. So, Mark, you asked about body corporate. If the managing party You did, yes. Um is happy for the tenant to add the fixture or make the structural change, uh but body corporate approval is also required, say in like a block of units or townhouses, um then the notice back to the tenant must advise that approval is dependent on the body corporate also granting approval. Then the managing party would need to submit the request for a change to the body corporate within 28 days of having received the original request. So, to put all that in simple terms, if you are managing a property in a body corporate, and you receive a a request from a tenant, you have 28 days from when you receive the tenant's request to assess that request and forward a request for approval to the body corporate. It's not 28 days from when the managing party states that they would be happy to approve as long as the body corporate approves. >> Okay. >> So, under this process, if the tenant receives approval from both the managing party and body corporate, and there are no conditions, or they agree to the conditions, then they can proceed with the change. And therefore, we encourage managing parties to be clear with their responses if you're approving a request. >> Excellent. Thanks for that, Cass. That clears that up very much. >> That's okay. >> So, you did mention that the managing party can set conditions. So, let's have a look at what those conditions could be. So, the very obvious one, first one off the off the mark here, is around professional installation. So, you know, look, professional a professional to come in and put a picture hook up may [clears throat] not necessarily be required. Um but, if you're approving a tenant to put an air conditioner in or or grab rail in a shower or toilet or something like that, you might actually want that professionally installed. So, that's one of the conditions that you can put in. Then we start to look at the obligations potentially for the tenant. So, if, let's say for example, using the air conditioner, if they ask for to to put an air conditioner in and you agree, it's all installed properly. So, we encourage managing parties in that situation to be very clear about what the ongoing maintenance requirements would be there. So, normally in a tenancy, the lessor is responsible and managing parties responsible to maintain the premises and its inclusions in good repair. If you're approving the tenant to put something in in these circumstances, you can write in that the tenant is responsible um for the ongoing maintenance of that uh particular installation. So, the last three dot points uh on the slide uh somewhat interrelated and may look at what happens to the fixture at the end of the tenancy. So, whether the tenant is required to remove and restore back to the original condition or leave the fixture in place at the end. Uh and if they do uh or are required to leave it in place, will they be compensated by the managing party for having improved the property? So, as Cass mentioned earlier, it is important to be clear in what conditions you are including in the approval uh and that the tenant agrees and abides by those conditions. So, again, if you do have any questions in regards to any of these, um pop them in the chat and we'll uh have a look at them as we get to the end of the presentation. So, looking at uh managing party receiving a request, uh if they're going to deny that request, then they must respond to the tenant in writing. Now, again, we'll mention page three of the form 23 uh and you can see there on the slide, there's plenty of room there to provide the information back to the tenant. So, we encourage you to fill that out and return it. Now, if a request is denied or no response is provided within 28 days, as we mentioned earlier, the tenant does not have permission to make the change. And we do encourage managing parties to provide a reason as to why the request is denied, but it's not a requirement to do so under the legislation. Now, if the tenant wishes to dispute the denial, firstly, we encourage them to talk to the managing party as the first step. So, self-resolution, and you'll hear in most of the presentations that we do, that we do encourage that self-resolution as a first step um before you can or before you do, rather, come to uh the RTA uh and submit that form 16 uh for dispute resolution assistance. So, and as most of you would be aware, if we're unable to resolve the matter up through the tribunal, then uh the parties can uh apply or the tenant can apply to QCAT uh for a um for a ruling there. Now, when it comes to QCAT, um if the matter is taken to QCAT, the legislation actually sets out a couple of things that QCAT need to consider uh in uh the process of deciding whether to approve or deny a request. One of uh the things that they need to consider is what uh the potential for the proposed fixture or structural change to improve the safety, security, and accessibility of the premises for the tenant. Um the likelihood that the proposed fixture or structural change can be removed uh and that the property can be restored to the condition that the premises were in at the start of the tenancy. Whether building approvals are required for the proposed fixture or structural change. >> [gasps] >> And then, maybe even to what extent uh to which the proposed change will actually modify the premises. So, they're a few of the uh list of things that QCAT need to consider. So, I guess we raise those issues if you are receiving a request as a managing party, uh and you're thinking, "Mm, I do or I don't want this, you know, to be done." Should the tenant take it down the path, and then potentially off to QCAT, what are QCAT going to look at uh before uh in making that decision. So, it gives you that opportunity, I suppose, to be aware of that and and consider those particular things before you uh provide that response to the tenant. So, Cass, is there anything else that you'd like to add here? >> Yeah, I I just like to reiterate that if no response is received, then the tenant does not have permission to make the change. So, um this is different to the pet approval process, where no response means that the request is deemed approved. So, it's not the same um in this case. In In the case of a request for fixtures or structural changes, if no response is received after 28 days, then the tenant may choose to follow up with the managing party um to attempt to self-resolve the situation, which we also always encourage, um or to apply for dispute resolution with the RTA. >> Yeah, that's some really good point uh and not to get those couple of processes mixed up. So, Cass, >> Thank you, Mark. So, um as we've discussed throughout today's presentation, before a tenant can make a change, they do need to follow the process that Mark's discussed um as specified under legislation. So, if a managing party finds that a tenant has made a change without submitting the form 23, um then there are a few options that I'm going through going to go through now right now. So, firstly, as the slide indicates and we mentioned earlier, the tenant may be considered in breach of the agreement. However, the managing party does have the option to waive the breach. That would be a first option. Um otherwise, they may choose to issue a notice to remedy the breach, um also known as a form 11, and ask the tenant to remove the change and restore the property to the way it was at the start of the tenancy. In this case, the tenant may be putting their tenancy at risk if they fail to remedy the breach. So, another potential option is that the tenant may be required to leave the fixture or structural change in place with no compensation for the cost of installing it. Now, in mentioning this, I would like to remind everyone that we talked earlier about one of the potential conditions for approval, um when the tenant goes through the correct process for requesting to make the change, that is, um is that the managing party agrees for the change on the proviso the tenant leaves the fixture in place at the end of the tenancy and compensates the tenant for the fixture. Now, in all of this, I'd like to emphasize that we always encourage the parties to discuss any issues between themselves before taking any action. Self-resolution is the best way to avoid matters escalating. >> It is, indeed. Now, before we get to a few more questions, and I can see them coming in, so I encourage you to uh continue to drop them in. Uh I just want to bring to everyone's attention uh the Small Changes Big Difference campaign that the RTA is proudly supporting. Now, this campaign has been developed by Queenslanders with a Disability Network in collaboration with people with lived experience of disability, uh industry representatives, the Department of Housing and Public Works, and other key industries bodies. Now, the Small Changes Big Difference campaign promotes consistent uh and accurate guidance across the sector when it comes to uh the adding of fixtures and fittings uh for those uh with a disability. So, the intent of it is to support people with a disability to understand how home modifications can be requested and installed in private rentals, while also helping property owners adopt best practice uh in supporting tenants with a disability. So, for more information, um we would encourage you to jump on to the website on the screen. Uh Castle also dropped the link into uh the chat. >> [gasps] >> So, and in line with this information, I'd reiterate uh from managing parties responsibility to be reasonable if refusing a request. Uh and also one of the banners that QCAT would have regard to should a matter get to them, and that's around the potential for the proposed fixture or structural change to improve the safety, security, and accessibility of the premises um for the tenant. So, again, if uh a tenant is looking to put a um an access ramp over a an entrance um door or a grab rail in a toilet or shower or something along those lines uh for safety or accessibility, uh then um certainly um the a consideration from uh QCAT would be uh if it's going to help their accessibility and safety, then it's probably a reasonable um change to be able to be made, but um there is a lot of information on uh the website about this um uh campaign, and we would encourage anyone that uh is receiving requests or even tenants that are thinking of making a request uh and are concerned um to jump on and have a look at the uh the information on the campaign. You still need to follow the process and and lodge the the form 23, um but the idea behind this is to open up opportunities um and make life a little bit easier for those with a disability uh in a rental property. The other thing that I want to mention quickly while we're talking about government programs, and this one isn't necessarily uh from the tenant doesn't uh they can request um but it's probably not one that comes through on the form 23, but just an awareness aspect that there is a program out there um run by the Queensland government for Queensland landlords to install solar systems uh and with sorry, with $3,500 rebate. Uh for owners, property managers, and tenants, you can find more information about eligibility and rebate requirements as well as the application form. So, again, uh the website uh is on the uh page and Cass will drop it into the chat. Uh there's a contact number there as well. So, again, statewide initiative uh and it's offered for rental properties across Queensland. So, um pretty much just an awareness uh there in regards to the fact that that program does exist as well. If you would like further information in uh relations to today's webinar topic or other matters relating to renting or managing a tenancy, our website has information available on a wide variety of topics and in a variety of formats including our podcasts, uh web pages, short videos, fact sheets, guides, and obviously recordings of our past webinars. And to stay up to date with all of our latest tenancy information, please make sure to follow us on uh LinkedIn, YouTube, or Instagram. Um so, we are on the gram, I think, as the young people call it these days. Uh subscribe to our RTA news uh or jump in and join our Talking Tenancies podcasts. So, you can access information specific to your situation by calling our contact center on 1300 366 311 between 8:30 and 5:00 on weekdays. Thank you very much for coming along. Thank you for your questions. Hopefully, everyone's got something out of this. I I the one thing that I will finish up with is that again this is uh a a process. There's no um right for the tenant to they can't just go ahead and do it. There's implications for doing that. So you've got that ability to work with the tenant in regards to whether they can or can't. The overall the bit of legislation that does say is you need to be reasonable in agreeing or not agreeing. So if you do think take that away from today. But again thank you very much and we will now end the webinar. Thanks Cass. Appreciate your help today. >> Thank you Thank you Mark and thanks everyone for joining us today. >> Thank you.