Tenant rental rights you need to know about

There have been lots of changes to tenancy legislation across the country in recent times. Many of these reforms give tenants greater rights. Read on to find out what rights your tenants might now have that you may not be totally across yet.

Landlords have a lot of rights when they are renting out their property - it is their property after all. But that property is a tenant’s home, and they have several rights protected in legislation too. In fact, recent changes to tenancy legislation across the country have bolstered the rights of tenants.

Here is a rundown on some new(ish) tenant rights of which you need to be aware. Please use this as a guide only and always refer to the relevant state/territory legislation or rental authority for the most up-to-date information.

Rent bidding

Landlords have the right to set the rental amount for their property – nothing’s changed there. What they do not have the right to do is to promote ‘rent bidding’. This is when prospective tenants are asked to encourage to pay a rent above the advertised price, effectively creating a ‘rent auction’. This practice has now been outlawed across the country. It is also important to know that some states have also recently prohibited tenants being charged extra fees at the start of a tenancy, including charges for background checks.

Rent increases

Landlords also have the right to increase the rent. However, to do so, they must abide by regulations in state/territory legislation. Recently, some jurisdictions moved to limit the number of times rent can be increased. In most cases this is now capped at once every 12 months (with variations depending on the type of lease like fixed-term or periodic). Tenants have the right to dispute a rent increase if they feel it is excessive.

Pets

A major change in legislation across the nation (though only proposed in NSW at the time of writing) has been in giving tenants the right to have a pet. While tenants must seek permission from the landlord to have a pet at the rental, the landlord cannot reasonably refuse. In most jurisdictions the landlord has the right to impose some conditions on allowing pets, such as requiring carpets to be professionally cleaned when the tenant vacates. WA remains the only state where taking a pet bond is legal.

Tenants are responsible for ensuring that any damage that their pet causes is repaired but, if they don’t make good on their obligation, the landlord may look to their insurance. EBM RentCover is one of few landlord insurance providers that offers cover for pet damage (up to $70,000 depending on your policy).

Evictions and terminating leases

In most states and territories, landlords must now have a valid reason to evict a tenant. ‘No grounds’ evictions/lease terminations have been outlawed across much of the country, though this depends on the type of lease in place (fixed-term or periodic). In many jurisdictions, the notice periods for ending a lease have also been updated. Tenants have the right to contest any eviction/lease termination notice.

Breaking leases

The most significant changes when it comes to breaking leases applies in situations of family and domestic violence. All jurisdictions have amended legislation to support impacted tenants. Tenants who have experienced family and domestic violence have several new rights when it comes to rental accommodation and landlords must adhere to these. Some jurisdictions have also regulated break-lease and re-letting fees, including NSW and QLD.

Minor modifications

Tenants now have the right to make minor modifications at the rental – usually landlord permission is required, but not always. What modifications can be made are outlined in the relevant legislation but, in general, changes to improve safety, security and accessibility are permitted. At the end of a tenancy, landlords generally have the right to require any modifications made to be removed and the premises re-instated to its original form (if they want). If a tenant does not fulfill this obligation, or makes and leaves unauthorised modifications, the landlord may look to their landlord insurance. Many insurance providers do not offer cover for deliberate damage caused by tenants – EBM RentCover often does (depending on the policy).

Minimum standards

Tenants in many jurisdictions now have the right to insist that minimum standards (as legislated) are met and maintained. If they are not, the tenant may have the right to terminate their lease without penalty or seek some other form of compensation such as a reduced rent.

Maintenance

Tenants have a right to breach a landlord for a failure to undertake necessary maintenance. If a landlord fails to undertake necessary repairs within a reasonable time, the tenant may breach the landlord and take them to court. They may be able to seek a reduction in rent in compensation for the loss of the amenity, seek a temporary reduction in rent or have their rent paid into a separate account until repairs are done. A tenant may also have a right to compensation if their property is damaged as the result of poor maintenance.

TIP: Adequately maintaining the premises is a condition of insurance cover. If minimum standards are not met, the property may not be insurable and/or any claim may be impacted. If the property is not properly maintained, insurance claims can be jeopardised.

With more than a quarter of the nation’s population living in private rental dwellings, landlords play an essential role as housing providers. With this responsibility comes several rights, but tenants have rights too. In recent times, these rights have been expanded – making it even more important now to understand your rights and obligations and respect those of your tenant so you can avoid unpleasant interactions, stay on the right side of the law, and safeguard your insurance cover.

Got questions about cover inclusions in EBM RentCover landlord insurance policies? Reach out to a member of our Expert Care team – 1800 661 662.

*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are there, contact 1800 661 662 if you have any questions.