Anticipated Amendments to Residential Tenancy Act: Impacts on Landlords and Tenants

In a recent legislative development, the Cook Government has introduced a Bill to Parliament, outlining expected reforms to the Residential Tenancies Act. The proposed changes, set to take effect in stages starting from early to mid-next year, aim to address several crucial aspects of the landlord-tenant relationship.

One of the pivotal changes includes the prohibition of rent bidding, a practice where tenants offer higher rent amounts to secure a property. Additionally, the Bill limits rent increases to once a year, altering the frequency from the existing six-month timeline. These amendments aim to bring stability to tenants in a rapidly fluctuating market affected by unprecedented demand and frequent cash rate increases.

Another significant alteration concerns pets in rental properties. Under the proposed changes, tenants would have the right to keep a pet at the premises with the owner's consent. However, the landlord may withhold consent under specific circumstances and impose conditions. To address concerns about potential pet-related damages, the Bill incorporates the expansion of the pet bond to cover damage or cleaning necessitated by having a pet on the premises. It clarifies that tenants are accountable for their pets' actions, emphasising that pet-related damage is not considered fair wear and tear.

Furthermore, the reforms outline modifications to rental properties, delineating tenants' rights to make minor alterations with the owner's consent. The Bill sets conditions for these modifications, including a process for obtaining consent, potential refusal under certain circumstances, or seeking recourse through the Commissioner. However, the specifics of what constitutes a minor modification are yet to be determined and will be established in forthcoming Regulations.

Regarding major modifications, tenants may undertake these with consent or make agreed-upon modifications without consent while notifying the owner beforehand. Importantly, tenants will be responsible for the costs associated with modifications, maintenance, removal, and restoring the premises at the end of the tenancy.

Additionally, the Bill addresses concerns related to retaliatory actions taken by lessors. While it doesn't eliminate No Grounds Terminations, it provides avenues for tenants to contest lease terminations if they believe these actions are motivated by complaints or efforts to enforce their rights.

The proposed improvements to the dispute resolution process are anticipated. However, concerns persist about the implementation and funding of this reform. Stakeholders seek clarity and assurance that adequate resources will support this revised process effectively.

As these amendments progress, stakeholders, including property owners, tenants, and agents, remain watchful of their implications. The coming months will likely witness ongoing discussions and engagements between stakeholders and the government to address remaining uncertainties and ensure a balanced tenancy landscape.

Ultimately, while these changes aim to enhance the rights and responsibilities of both landlords and tenants, their practical implementation and impact on the housing market remain subjects of ongoing scrutiny and debate.

Rob Woolmer 

Head of Property Management

CONTESSI PROPERTIES