THE ACT government’s proposed amendments to the Residential Tenancy Act could make conditions tougher for tenants, says the Real Estate Institute of the ACT (REIACT). 

REIACT director Craig Bright says the changes impose additional costs on lessors, which will ultimately be recouped by increased rents, and, therefore, will have an adverse impact on housing affordability.

REIACT is currently still in consultation with the ACT government regarding the proposed amendments but, Mr Bright says REIACT has key concerns about topics such as allowing tenants to have pets and using blu tack. 

“We believe that the amendments are not necessarily going to make it easier for tenants to find pet-friendly properties,” he says.

“In the current market where there are generally multiple applications for a rental property, a lessor would have the option to select a tenant who doesn’t own a pet as the easier route to follow.

“The proposed amendment could impose additional costs for the lessors which will ultimately translate to rents. The current provisions allow for negotiation between the two parties and there is very little evidence that the current practice is not adequate.”

Another concern, which Mr Bright says REIACT has, is in relation to strengthening renters’ rights to make basic modifications such as using blu tack and picture hooks.

“It is important to be very specific with regard to what modifications can actually be carried out,” he says.

“It should also be noted that any approved changes are at the tenant’s expense. Any approved modifications should be carried out by licensed tradesperson as should any make good provisions at the end of the tenancy.”

There’s also concerns around tenants breaking leases and costs when a tenant leaves early – especially when there is a replacement tenant.

“The current provisions, introduced in August 2017, of a fixed fee for a tenant to break their lease, were put in place to create certainty for both parties,” Mr Bright says.

“However, this proposed amendment may seriously impact the tenant’s security of tenure. In the prevailing tight market conditions, this is especially the case.”

And finally, Mr Bright says there are concerns about shifting the onus from tenants to lessors to justify a rental increase that is “excessive beyond a basic CPI-based threshold”.

“To our knowledge, there is no other jurisdiction in Australia that has a prescribed rate of increase,” he says.

“Manipulating market forces will impact the supply of housing stock available for rent, which of course could ultimately disadvantage tenants, especially those in lower socio-economic circumstances.”

Mr Bright says the impacts of such changes need to be considered in the context of the current rental market in the ACT.