ACT Shelter’s Deborah Pippen says those seeking information should “always double-check before making decisions that could have an impact on your living situation”. Photo: File.
As the new year arrives, so does a new flock of renters seeking a contract in the tight ACT residential market. While finding a room is hard enough, many are just as confused about their rights under the Residential Tenancies Act (RTA).
Last year a variety of reforms were introduced. One notable change was that landlords can no longer end a rental contract without justification. There is also a minimum standard for ceiling insulation, which the government will help landlords install over the coming years. It is also now illegal for landlords and agents to encourage bidding for properties higher than the fixed rental amount, which they must advertise.
Tenants were also given the right to have a removable compost bin and contribute their own plants, which don’t exceed two metres in height or require the removal of existing vegetation, to a property’s garden. More information on the changes can be found on the government’s fact sheet.
ACT Shelter research and policy coordinator Deborah Pippen says one of the problems for renters is that many people don’t understand the law.
“Not just tenants, but landlords and even real estate agents, as there’s often not a lot of training provided to them,” she said.
“There will always be tension between these parties because they each see their property in completely different ways. However, if the law works properly and both sides are clear on it, that tension will dissipate.”
The most common issues tenants bring to ACT Shelter involve bonds, access and privacy, rent increases and lease changes.
Deborah Pippen works for ACT Shelter, an organisation funded by the Government to provide advocacy and advice on systemic housing issues. Photo: ACT Shelter.
While landlords do not have to ask for a bond in the ACT, most do. They provide landlords with financial security if they find evidence of tenants failing to comply with their contractual obligations.
However, they must lodge their tenants’ bond with the ACT Rental Bonds Office; otherwise, penalties apply. Ms Pippen recommends tenants call the office if they believe their landlord has not done so.
If their bond is being held by the landlord illegally, tenants can report them to the ACT Civil and Administrative Tribunal (ACAT).
As for access and privacy, real estate agents and landlords are not allowed to enter a rental property unless it’s set out in the contract. They have to negotiate a time with the tenant, who can also refuse access.
The same rule applies for inspections, but tenants must be given two weeks’ notice and may demand to be present for them. Ms Pippen says you cannot fail an inspection as it is not a test but an opportunity to discuss any issues with the property.
When it comes to rent increases, Ms Pippen says if landlords want to increase rent beyond the legal limit set at 110 per cent of the Consumer Price Index (CPI), they must obtain permission by applying to ACAT.
The ACT Greens have proposed introducing an ACT rental ombudsman to relieve the pressure on ACAT in resolving disputes between tenants and landlords. Attorney-General Shane Rattenbury will respond to the Legislative Assembly on the motion later this year.
Ms Pippen says many tenants believe they require permission from their landlords to continue living in a rental property. However, in the ACT, only a tenant can end their residency once their contract is complete.
For example, when a tenant’s original 12-month contract finishes, it automatically rolls into a month-to-month basis. The tenant cannot be made to sign a new contract and is allowed to remain on that basis for as long as they like.
Tenants wanting more information about their rights and responsibilities can access a number of resources. The ACT Government has a renters’ guidebook covering all matters under the RTA, which is currently being updated by the Justice and Community Safety Directorate.
It has also extended the Rent Relief Fund until 30 June 2024, which provides support to the most vulnerable households with grants for up to four weeks of rent.
The Tenants’ Union ACT has more than 26 years of advice on its website for a small subscription fee.
ACT Legal Aid provides free legal advice over the phone (1300 402 512). Its website provides a variety of fact sheets covering tenancy law basics, rent increases, ending a lease for a tenant or landlord, and matters regarding house/flatmates.
The ANU’s Student Association (ANUSA) offers legal advice by appointment, email, or phone (6125 2444). For people on low incomes or in public housing, there is Canberra Community Law 6218 7900.
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