Renters and Owners in Canberra and the ACT - has the balance changed?

/ Acumen Property/

From the 1st November 2019, rental agreements signed in the ACT will now include new legislated terms that effectively provide renters with a more equitable opportunity to keep pets and make minor modifications to an owner’s property. (ACT Government, 2019)

Regulation of residential property leases has been an accepted market intervention, seen as necessary to ensure renters and owners engage in a business transaction that is fair and reasonable. The Residential Tenancies Amendment Act (2019) is the latest instalment for the ACT and is modelled on similar Victorian tenancy law reforms yet to be fully implemented (Consumer Affairs Victoria, 2019).

While having a pet and personalising a home maybe great news for renters, only time will tell whether these changes have unintended consequences. For instance, will some owners find these provisions an excessive infringement on their property ownership rights and withdraw from the private rental market? Owners may also face extra management costs through regulatory compliance and dealing with consent requests and ACAT disputes.  Further costs may also be incurred in the rectification of property modifications whether they are either poorly executed or deemed to be reinstated to the satisfaction of the tribunal but not the owner. Such concerns may deter owners from renovating and updating their property to appeal to the broader market only to have renters make changes to satisfy their own personal tastes.

In terms of sustainability, an important question needs to be answered:

  • will these new provisions contribute to more energy and resources being used in property modification and restoration work?

To find out more about these changes, the ACT Government has prepared some useful information sheets:

1.       Residential Tenancies Amendment Act 2019, Pets

2.      Residential Tenancies Amendment Act 2019, Modifications

References

ACT Government, 2019, Residential Tenancies Amendment Act 2019, Revision 3. Retrieved from Justice and Community Safety Directorate: http://www.justice.act.gov.au/page/view/4063/title/residential-tenancies-amendment-act-2019

Consumer Affairs Victoria, 2019, Safer and fairer laws for Victorian tenants and landlords. Retrieved from Renting laws are changing: https://www.consumer.vic.gov.au/housing/renting/changes-to-renting-laws