Find out what a renter disclosure statement is, why you need one when you lease a property and what’s involved with signing one.
To ensure renters can access safe, comfortable homes to live in, disclosure statements are now required.
A rental property disclosure statement is a document provided by a rental property provider to a renter prior to entering into a property leasing contract. The statement provides the renter with important information about the property, including its physical condition, safety features, and any potential risks associated with living there.
The purpose of the statement is to ensure whoever signs the lease is fully informed about the rental property before they move in. It is designed to protect the interests of both the renter and the property owner by sharing specific details about the home, its history and the condition it is in.
Disclosure statement information
The information shared with a renter in a disclosure statement may include the following:
Whether the owner has the intention to sell the property or if it is already on the market
If the electricity supplied to the property is from an embedded electricity network (An embedded electricity network is a privately owned and managed electricity network which may often supply all premises within a specific area or building and connect to the national electric grid through a parent connection point.)
If the person renting the property out is the owner or if they can confirm they have the right to lease the home
If the property or common property is known to have been the location of a homicide in the last five years
If the property is known to be contaminated because of prior use of the premises for the trafficking or cultivation of a drug of dependence in the last five years
Confirmation the rental premises comply with the minimum standards
Whether or not the property has been subjected to a repair notice relating to mould or damp in the premises caused by or related to the building structure
Whether the property has had the required gas safety check, electrical safety check and pool barrier compliance check (if applicable) carried out
If the property is known to be affected by a building or planning application which has been lodged with the relevant authority
Whether an owners’ corporation oversees the management of the building the home is in
If there are any defects or safety concerns associated with the premises.
There are also clauses relating to whether the property is heritage listed/registered and whether it has passed an asbestos inspection.
Why have a disclosure statement?
It is easy to understand how frustrating it could be to move into a rental property, only to discover it is for sale, or how upsetting it would be to realise a serious crime was committed in the home.
The disclosure statement provides renters with peace of mind about the property they are set to move into.
For property owners, it’s a good opportunity to review the conditions of the premises, double check they are fit to inhabit and confirm the home meets the required standards for a rental property.
Who is responsible for creating and sharing a disclosure statement?
If there is a property manager, he or she is responsible for ensuring the property owner has filled the rental disclosure statement so it can be made available to the renter, whether they are signing a new lease or renewing their existing one.
It will be up to the managing agent to provide the checklist to the property’s owner then pass it to the renter once it has been filled out and signed. According to the Victorian Small Business Commission, a rental property provider must give the renter a disclosure statement and copy of the proposed lease no later than 14 days before the lease is entered into.
More informations is available via Consumer Affairs Victoria.
If you are a property manager, it helps to have a template for a disclosure statement which you can review, sign and share with renters.