Residential Tenancy (Condition Reports) (Jersey) Order 2014

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 19 August 2014:

Decision Reference: MD-C-2014-0147
Decision Summary Title :	Residential Tenancy (Condition Reports) (Jersey) Order 2014		Date of Decision Summary:	14th August 2014
Decision Summary Author:	Policy Officer Strategic Housing Unit		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Residential Tenancy (Condition Reports) (Jersey) Order 2014		Date of Written Report:	14th August 2014
Written Report Author:	Policy Officer Strategic Housing Unit		Written Report : Public or Exempt?	Public
Subject: Residential Tenancy (Condition Reports) (Jersey) Order 2014
Decision(s): The Minister for Housing made the Residential Tenancy (Condition Reports) (Jersey) Order 2014.
Reason(s) for Decision: Article 23 (2) (a) – (b) of the Residential Tenancy (Jersey) Law 2011 prescribes that the Minister for Housing may by Order require a landlord and a tenant to complete a condition report at the commencement and at the termination of a residential tenancy, and specify the contents of those reports. As part of the Strategic Housing Unit’s work programme to strengthen the legislative framework governing the residential rental sector in Jersey, the Minister wishes to make it compulsory to complete a condition report. This is driven by an overarching aim to modernise the sector and encourage responsible letting management practices. Once made, the Order will come into force on 31st October 2014.
Resource Implications: There are no resource implications for the States.
Action required: The Greffier of the States is requested to make the necessary arrangements for the Order to be laid before the States Assembly.
Signature:		Position: Minister for Housing
Date Signed:		Date of Decision (If different from Date Signed):

Residential Tenancy (Condition Reports) (Jersey) Order 2014

Draft Residential Tenancy (Condition Reports) (Jersey) Order 2014

Introduction

The Minister for Housing is asked to make the draft Residential Tenancy (Condition Reports) (Jersey) Order 2014. The Order will make it compulsory under Article 23 (2) (a) – (b) of the Residential Tenancy (Jersey) Law 2011 for landlords and tenants to complete a condition report at the beginning and termination of a residential tenancy.

Background

The Residential Tenancy (Jersey) Law 2011 establishes a modern legal framework of rights and responsibilities for both landlords and tenants who let residential rental property under a residential tenancy agreement.

The Law came into force in May 2013 and includes provisions to allow the Minister to bring forward subordinate legislation, including compulsory condition reports.

Following the States Assembly adopting the Law in 2011, the Minister published a White Paper in December the same year (R.152/2011) which sought views on proposals to introduce a number of compulsory forms for landlords and tenants to support residential tenancies. This included a proposal to introduce a compulsory condition report.

Responses were received from a number of interested parties, including the Jersey Homes Trust, Citizens Advice Bureau, Consumer Council, and Jersey Estate Agents Association, which showed a clear majority (around 80% of respondents) were in favour of introducing condition reports.

The responses noted, in particular, that it was common practice already for a landlord or a letting agent to complete an inventory, and therefore a compulsory condition report would provide a further record when deciding on the return of deposit money.

The responses to the White paper are outlined in R.802/012 published in June 2012.

With the States Assembly having adopted Regulations in July 2014 to establish a Tenancy Deposit Scheme, which is expected to come into effect during 2015, a condition report will assist the running of the Scheme by providing parties with a record through which disputes over the return of deposit money can be supported and resolved.

Purpose of a condition report

A condition report is a useful way for a landlord to record the physical condition and state of repair of a property when a tenancy begins and terminates.

It takes note of the fixed parts of a property such as the condition of the walls, ceilings and floors in each room of a property and any fixtures, fittings and movables belonging to a landlord which are included as part of a tenancy agreement.

The Order sets out 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, fittings and movable property belonging to a landlord;
Signatures of both parties agreeing or disagreeing to the contents of a report;
Specify that a report should be completed in writing and may include photos.

In addition, the Order set out the timeframe within which a report must be completed at the beginning and termination of a tenancy. It will be offence not to complete a condition report liable to a fine of up to £2,000 (Level 3 on the standard scale).

Overall, the Minister wishes to take a ‘light touch’ approach, ensuring that reports provide comprehensive, accurate and clear information without restricting existing good practice among landlords.

Therefore, a condition report will focus on core issues and be adaptable for use in all types of property. 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, supported by a comparison report at its end, then a condition report will be admissible as evidence in any dispute resolution process or Court action should it be relevant to any matter arising.

The Order comes into force on 31st October 2014 and will apply to new tenancy agreements made after this date. A new condition report may be completed when the tenancy is renewed or varied, but this is at the discretion of the landlord and tenant and they may continue to rely upon the report completed when the original tenancy agreement was entered into.

Resource implications

There are no resource implications for the States.

Landlords will have a small administrative role when completing a condition report, but a standard template will be made available online to assist this process.

The administrative responsibility placed upon landlords will, arguably, be offset by the benefit of having a condition report should a dispute over a tenant's deposit arise at the end of a tenancy.

Recommendation

The Minister for Housing is recommended to make the draft Residential Tenancy (Condition Reports) (Jersey) Order 2014.

Jack Norris

Policy Officer

Strategic Housing Unit

14th August 2014