Renters whose homes have been damaged in the recent bushfires across the country are being reminded of their tenancy rights and those whose properties are completely destroyed may face little option but to terminate their current lease agreements. So, what happens if your rental property is damaged or destroyed by a natural disaster?

In New South Wales a tenant has rights under the Residential Tenancies Act 2010 specifically under a clause titled Disaster Damage. Disaster Damage is considered damage caused to a rented premise that is neither the fault of the landlord nor the tenant, for example, as the result of a storm, fire or flood.

Stay Safe

Your top priority, of course, is to stay safe, listen and obey the directions of emergency services and if in the event that your property is impacted and then deemed unsafe (by the local council or alike) you may have to leave. If a property is deemed uninhabitable, either wholly or partly, you or the landlord can give the other an immediate termination notice.

What Are A Landlord’s Obligations?

Whilst a landlord may be obligated to provide a return of any overpaid rent (or rent paid in advance) or offer a rental reduction, in NSW a landlord is not obliged to provide or pay for alternative accommodation if in the event the property is destroyed or deemed uninhabitable as the result of a natural disaster.

Should the property remain habitable landlords are, however, required to complete any urgent repairs without delay, even if awaiting an insurance payout, and landlords could be liable for compensation if repairs are not completed in an urgent manner.

What’s Considered An Urgent Repair?

Urgent repairs include; serious storm, flood or fire damage. Serious roof leaks, electrical faults or other damage that makes the premises unsafe or not secure.

Insurance - Who’s Responsible?

Renters or Tenants Insurance is insurance which covers you when you’re renting and whilst this won’t cover the building or fittings, such as landlord insurance would, this will cover your personal items such as clothes, furniture and valuable belongings.

When a disaster occurs, tenants are often the ones to lose everything and potentially miss out on compensation. Insurance protects against financial loss from specific risks such as fire or burglary, or against accidental loss or damage. As with most policies, the type of cover varies between insurers and it’s worthwhile checking with your provider.

Landlord Insurance is insurance designed to protect your investment. Landlord building and contents insurance usually cover your building against risks from catastrophes, such as fire, storms and other natural disasters. You may also opt to protect yourself against financial loss caused by damage or loss of rent.

What’s Next For Those Affected By This Fire Season?

Regional centres closest to the bushfire-affected regions are facing rental shortages as displaced homeowners and renters scramble to find accommodation in the area.

Local real estate agents have reported the demand for rental homes has been surging since the bushfires started and properties were in short supply.

Nerida Conisbee, the chief economist at Realestate.com.au, said many people would require accommodation near their homes so they could continue to work, their children could continue to attend school and also to stay close to family and friends.

"There will be a strain on rental housing in bushfire regions," she said.

"Those who were adversely impacted by bushfires by the loss of their homes will also face an expensive rental market while they endeavour to rebuild their lives."

Real estate agents said they were expecting the rental crisis to worsen when the reconstruction began.

So, how can we help those in need?