Residential Tenancy (Jersey) Law 2011: Compulsory Property Condition Reports: Law drafting instructions

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A decision made 4 June 2014:

Decision Reference: MD-C-2014-0111
Decision Summary Title :	Law-drafting instructions: Residential Tenancy (Jersey) Law 2011 – draft condition reports Order		Date of Decision Summary:	3rd June 2014
Decision Summary Author:	Policy Officer Strategic Housing Unit		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Law-drafting instructions: Residential Tenancy (Jersey) Law 2011 – draft condition reports Order		Date of Written Report:	3rd June 2014
Written Report Author:	Policy Officer Strategic Housing Unit		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Residential Tenancy (Jersey) Law 2011 – Law-drafting request in connection with a draft Order to introduce compulsory property condition reports.
Decision(s): The Minister for Housing decided to request the Law Draftsman to prepare a draft Order in connection with the introduction of compulsory property condition reports.
Reason(s) for Decision: Under Articles 23(2)(a) and (b) of the Residential Tenancy (Jersey) Law 2011, the Minister for Housing may make an Order in respect of the introduction of property condition reports and also prescribe the content of such reports. In support of the draft Residential Tenancy (Deposit Scheme) (Jersey) Regulations 201-, the Minister now wishes to make provision, by Order, to ensure that landlords and tenants complete a property condition report. A condition report provides a record of the physical condition of a residential unit when a tenant moves in and moves out of a residential unit. As such, it functions as a valuable piece of evidence when managing the return of deposit money, especially if a dispute arises.
Resource Implications: There are no resource implications arising from this decision.
Action required: Policy Officer, Strategic Housing Unit, to provide the necessary drafting instructions to the Law Draftsman in order to prepare the draft Order.
Signature:		Position: Deputy Andrew Green Minister for Housing, Strategic Housing Unit
Date Signed:		Date of Decision (If different from Date Signed):

Residential Tenancy (Jersey) Law 2011: Compulsory Property Condition Reports: Law drafting instructions

Residential Tenancy (Jersey) Law 2011: Introduction of condition reports

Purpose

To obtain the approval of the Minister for Housing to request the Law-Draftsman to prepare a draft Order in connection with the introduction of compulsory property condition reports, as provided for by Articles 23(2)(a) and (b) of the Residential Tenancy (Jersey) Law 2011.

Background

The Residential Tenancy (Jersey) Law 2011 establishes a modern statutory framework for the development of fair, transparent and well-regulated tenancy agreements between landlords and tenants. The Law came into force in May 2013 and, among other matters, allows the Minister to bring forward subordinate legislation to introduce property condition report.

Following the States adoption of the Law, the Minister published a White Paper in December 2011 seeking views on proposals to introduce a number of compulsory forms for landlords and tenants to use under the Law. This included a proposal to introduce a compulsory condition report when a tenancy agreement commenced and a comparison report when it ended.

The majority of responses received indicated support for the introduction of condition reports. They noted that it was common practise already for landlords and managing agents to complete an inventory, and condition reports would therefore provide added support when deciding upon the return of rental deposit money.

The Minister, having lodged the draft Residential Tenancy (Deposit Scheme) Regulations 201-, now wishes to bring forward an Order to introduce compulsory property conditions reports.

The availability of a condition report will assist the smooth running of the deposit scheme and provide landlords and tenants with a record through which disputes over the return of deposit monies can be supported and resolved.

Purpose of a condition report

A condition report is a helpful way for a landlord to record the physical condition and state of repair of a residential unit when a residential tenancy begins and ends. It takes particular notice of fixed parts of a property, including the condition of the walls, ceilings and floors in each room, and any movables belonging to a landlord as part of a tenancy agreement.

It is proposed that the draft Order will prescribe that a condition report must, as a minimum, include the following information:-

The state of repair of each room in a residential unit;
The condition of fixtures and fittings and any movable property;
Signatures of both parties agreeing or disagreeing to the contents of a report;
A period at the beginning and end of a tenancy during which a report must be completed;
Specify that a report should be completed entirely in writing or entirely/partly with photos.

In addition, a provision making it an offence liable to fine for a landlord not to complete a condition report will be included in the Order.

Overall, the Minister wishes to ensure that a condition report provides comprehensive, accurate and clear information without restricting existing good practise among landlords. In this way, a condition report will be adaptable for use in all types of residential units and account for any specific circumstances they may have. Although landlords will not be required to use a standard report, a template will be made available should they wish to use one.

This approach ensures that both landlords and tenants are protected from any questions relating to the condition of a property at the end of a tenancy. If there is a robust indicator of the facts at the beginning of a tenancy agreement, supported by a comparison report at the end, then a condition report will be admissible as evidence in any dispute resolution process under the tenancy deposit scheme or Court action should it be relevant to any matter arising.

Resource implications

There are no resource implications for the States. Landlords will have a small administrative function when completing a condition report, but a standard template will be made available on-line to assist the process.

Recommendation

The Minister for Housing is asked to request the Law-Draftsman to prepare a draft Order in connection with the introduction of compulsory property condition reports, as provided for by Articles 23(2)(a) and (b) of the Residential Tenancy (Jersey) Law 2011.

Strategic Housing Unit

03rd June 2014

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