The Residential Tenancy (Rental Market Reform) Amendment Bill 2021 and Residential Tenancy Amendment (Minimum Window Coverings for Social Housing Properties) Bill 2023 are currently before the Tasmanian Parliament.
These Bills, if passed, will amend the Residential Tenancy Act 1997 (the Act) to introduce further favourable conditions for residential tenants and restrict or remove existing landlord rights.
Residential Tenancy (Rental Market Reform) Amendment Bill 2021
The purpose of this Bill is to amend the Act to implement a model for limiting rent increases, introduce minimum energy efficiency standards for fixtures and whitegoods, abolish “no cause” evictions and require reasonable grounds for refusing pets.
Restricting rent increases
This proposed model effectively establishes a benchmark for rent increases of CPI + 10%, and allows for consideration of a broad range of factors in consideration of whether or not derogation from this benchmark is reasonable. Where the proposed rent increase is within the benchmark range, the burden of proof in proving the rent increase is unreasonable falls with the tenant. Where the rent increase is in excess of the benchmark range, the landlord would need to prove it was reasonable.
Minimum energy efficiency standards
These standards introduce minimum energy efficiency standards for fixtures and whitegoods – in most cases these are a 3-star rating under the WELS scheme for water appliances and a 2-star rating under the AS/NZS standards for electrical appliances for heating.
Abolish no cause evictions
The proposed amendments effectively mean a person can no longer be evicted solely on the grounds of lease expiration. This will mean that when a fixed term lease ends, in the absence of other grounds for requiring a tenant vacate, a landlord will be bound to allow its tenant to remain in possession of the premises.
A landlord will require lawful grounds for eviction to be cited if a landlord chooses not to renew a lease, such as:
- the tenant violated the lease agreement;
- the tenant has caused nuisance at the premises that is substantial;
- the premises are being sold;
- the premises are no longer intended to be a rental premises;
- the premises are to undergo significant renovations;
- the premises are to be used as a residence by a family member of the landlord.
Reasonable grounds required for refusing pet
These amendments will require a landlord to acquire permission from the Tenancy Commissioner to refuse to allow a pet to be kept on the premises.
The Commissioner will be required to provide such permission if satisfied of one or more of the following conditions:
- the premises are unsuitable to keep the pet;
- keeping the pet on the premises would result in unreasonable damage to the premises;
- keeping the pet on the premises would be an unacceptable risk to public health or safety;
- the landlord would suffer significant hardship; or
- keeping the pet on the premises would be contrary to another law.
The onus of proving that such conditions exist will be on the landlord. The tenant will be responsible for any repairs or additional maintenance required as a result of keeping a pet on the premises.
The Residential Tenancy Amendment (Minimum Window Coverings for Social Housing Properties) Bill 2023
This Bill will amend section 36N of the Act to require social housing properties to be furnished with minimum window coverings at the commencement of a new tenancy agreement.
Social housing providers must not enter into a new residential tenancy agreement relating to a premises unless curtains or blinds cover each window in any room in the premises that the social housing provider knows is likely to be used as a bedroom or living area. An exception to this will be if the social housing provider agrees to furnish the premises with such window coverings at its own expense and provides and installs these within 10 working days of the commencement of the residential tenancy agreement.
How we can help
We have significant experience in dealing with leasing matters, including residential leasing.
If you require assistance with the preparation of a residential tenancy agreement, or advice in relation to your rights under an agreement or the Act, please get in touch.
Mark Crosswell
Special Counsel
M: 0418 791 879
E: mcrosswell@pageseager.com.au
Deidre Tan
Associate
T: (03) 6235 5131
E: dtan@pageseager.com.au
Published: 4 October 2023
