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Q&A - Material Facts

We have had an issue with our investment property in the past that we think might deter tenants from wanting to rent our property, do we have to tell people about this?

Legislation has become clearer on this issue in recent years. Whilst you may not be required to disclose certain issues with the property there are a list of material facts that landlords will have to let prospective tenants know about - these include information about Flood and Bushfire risk, asbestos, violent crime and more (head to Fair Trading NSW for the full list).


Earlier this year new material facts were added specifically for landlords, including that a landlord or agent needs to disclose if the property:

  • has been used to manufacture or grow a prohibited drug or prohibited plant in the last two years

  • is in a strata scheme where scheduled rectification work or major repairs will be done to common property during the fixed term of the agreement, or

  • is part of a building to where a fire safety or building product rectification order (or a notice of intention to issue one of these orders) has been issued for external combustible cladding or development or complying development certificate application for rectification has been lodged for external combustible cladding.

Depending on your situation you may not have to disclose your issue, but it's crucial that you have a property manager that is informed and up to date with current legislation, as well as one with good communication skills in the case you have any issues like that do need to be disclosed.