The Cook Government introduced a Bill to Parliament this afternoon regarding the planned reforms to the Residential Tenancies Act announced in May.
I would like to make it clear that this is an Amendment Bill and the changes are what we have expected and previously communicated. There are many details, such as those regarding modifications, that still have to be prescribed by Regulations and we continue to engage with the Government on these matters.
In general, the Bill covers:
- Banning rent bidding
- Limiting rent increases to once a year
- Changes to the dispute resolution process
- Pets in rental properties
- Modifications to rental properties
When it comes to pets, the Bill includes new provisions to allow tenants to keep a pet at the premises with the consent of the owner and will set out the circumstances where the landlord may withhold consent and impose conditions on consent.
It will also outline the process by which a tenant can seek approval for a pet and resolution of disputes by the Commissioner for Consumer Protection.
We advocated for the pet bond to be expanded to cover damage or cleaning required due to having a pet at the premises and this is included in the Bill. The Bill also makes clear that tenants have responsibility for pets, including nuisance and damage, and that damage caused by a pet is not fair wear and tear.
In relation to modifications to rental properties, the Bill sets out provisions relating to a tenant’s right to make various types of modifications to the premises, consent of the owner, conditions that may be imposed and applications to the Commissioner.
The tenant can make minor modifications to the premises, but only with the consent of the owner. Conditions may be imposed on the making of minor modifications. What is considered a minor modification has not been determined and will be in the coming Regulations. We have already been engaging with Government on this subject and will continue to do so.
For major modifications (anything other than a minor modification, furniture safety modification or a modification to prevent a person from entering the premises), there are several options. A residential tenancy agreement may provide that a tenant:
- may make an agreed modification without consent, but they must notify the owner before making the modification;
- may make a major modification with consent, but the owner cannot unreasonably withhold consent;
- must not make major modifications to the premises.
One of our key advocacy points regarding modifications was the need for the tenant to ‘make good’ at the end of the tenancy. The Bill provides that the tenant is responsible for the costs of making modifications, maintaining modifications, removing a modification and restoring premises.
Tenants will also have to ensure a modification has regard for the age and character of the property and complies with any law or scheme by-law.
We know the section about “Retaliatory action taken by lessor” is causing some concern. Similar legislation is in place in other states. This does not negate No Grounds Terminations but is intended to give tenants the opportunity to apply to the court if they feel the termination of their lease was motivated by the tenant making a complaint or having taken steps to enforce their rights.
We are currently working through the detail of this and other aspects of the Amendment Bill and the explanatory memorandum and will provide more information soon.
The reforms will come into effect in stages, beginning early next year.
REIWA Executive Manager of Policy and Advocacy Tim Lane will also be providing an update on the RTA Amendment Bill at the Property Managers Christmas Breakfast on 8 December. Tickets are still available and can be booked here.
(Excerpt from CEO of REIWA, Cath Hart)
