Rental commish has pet bans, evictions in sights

Trina-Jones.jpg

Nothing succeeds like success and if the newly minted rentals commissioner is anything like as productive as Building Commissioner David Chandler, then the whole rentals scene in the state can expect a major shake-up.

It’s not hard to see on which side of the landlord/tenant divide Trina Jones will sit, having stated that she has the task of pushing through changes to legislation that will end no-fault evictions and pet bans in rental properties. 

All of that is very much in her wheelhouse, as they say. As CEO of Homelessness NSW, she was solidly behind the less fortunate members of society.

And however much some landlords may claim that renters hold all the trump cards, owning multiple properties with “difficult” tenants hardly puts you in the same category as people who have to sleep in their cars.

“Everyone should have a decent, safe, affordable home,” Ms Jones wrote in social media on the morning she was presented to the public by NSW Premier Chris Minns. “This is something I have been working towards my entire career. It’s a core value I hold and I am deeply motivated to continue this work as the inaugural NSW Rental Commissioner.

“My focus will be on quality, fairness and affordability for the two million renters in NSW. To be a be a voice with and for renters working with industry, government and advocates to shape policy, regulation and law for a fairer renting system.”

She added that she looked forward to strengthening “existing and new partnerships to drive solutions to our housing challenges to make renting fairer in NSW.”

All said and done, there’s no need for landlords to panic. This will not happen overnight but, as the TV hair product ads used to say, it will happen.

And this is of specific interest to apartment owners and residents as half of the population of NSW’s apartment blocks are tenants.

When it comes to rental reforms, Ms Jones has been given a head start with the recent passage of the Rental Fairness Bill which the Minns Government says has closed existing loopholes and extended the ban on soliciting rental bids so that it applies to third-party platforms and owners, not just real estate agents.

It also empowered the NSW Rental Commissioner to gather pricing data from agents, allowing her to provide informed and accurate advice to government.

And it established the powers needed to create and implement a portable bond scheme that will make sure renters don’t have tie up twice as much money when they transition from one rental to another.

Closing loopholes and providing the NSW Rental Commissioner with the powers needed to find solutions across government will pave the way for further action, Minister for Better Regulation and Fair Trading Anoulack Chanthivong said of the Bill’s passage.

That includes making it easier for tenants to have pets in rentals and to curb “no fault” evictions.

The latter will probably set the loudest alarm bells ringing among investors. Ending tenancies has long been a way of avoiding Tribunal conflicts over “excessive” rent rises, with the trade-off being that perfectly good tenants were sent packing so that their replacements could be charged more.

A real estate agent in Sydney’s East even advised their clients to evict all their tenants in order to take full advantage of rampant post-Covid rent rises.

No-fault evictions were banned in Victoria a couple of years ago.  There tenants can challenge a claimed exemption – such as the owner wanting to move themselves or their family into the property, or sell it – but the owner faces severe penalties if they subsequently turn out to have lied.

The next phase of the housing reforms will see a strata commissioner join Ms Jones, Building Commissioner David Chandler and Property Services Commissioner John Minns.

They’re not quite the Four Horsepersons of the Property Apocalypse – unless you are a dodgy developer, rotten real estate agent, lowlife landlord or, one assumes, a  corrupt and/or incompetent strata committee member.

A version of this column first appeared in the Australian Financial Review.

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  • #69442
    Jimmy-T
    Keymaster

      Nothing succeeds like success and if the newly minted rentals commissioner is anything like as productive as Building Commissioner David Chandler, the
      [See the full post at: Rental commish has pet bans, evictions in sights]

      The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
    Viewing 13 replies - 1 through 13 (of 13 total)
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    • #69501
      hyacinth
      Flatchatter

        I am totally opposed to allowing pets in rental apartments. It must be left entirely to the owner to decide if their tenant can have a pet or not. .Ido believe the pendulum has swung too far towards tenants  rights, the owners must retain some control over their investment. I do agree some control needs to be on rents, though unsure what or how.  And all for eventually removing gas stoves for induction..anything that will help stop emissions.

         

        #69506
        Quirky
        Flatchatter

          There are several pets (dogs and cats) in our building, and the pet owners have not applied for permission to keep them. Probably because the application to keep a pet (under our by-laws) requires a tenant to provide evidence the owner of the Unit consents to their keeping a pet. When questioned, the tenants say the pet isn’t theirs, but is just visiting their Unit. Under current strata laws, the pet must constitute a real nuisance, for the Owners Corporation to take action. And the pets are mostly well behaved.

          #69525
          Listohan
          Flatchatter

            It is fascinating to watch governments announce legislative means to address problems that emerge from commercial realities in the hope the punters will overlook the more difficult (i.e., costly) remedies that would make a difference. So a tight rental market, caused in part by governments abandoning their role in providing public housing is met with adding to the regulation of the private rental market. Action taken—next problem!

            According to https://tinyurl.com/22cvjsmo the private rental market is broken. And if more rentals will be needed in the future, where will the investors come from when, apparently, more investors are leaving the market than joining it?

            If the new commissioner’s passion is the homeless, is this the time to favour those with homes already?

            #69526
            Listohan
            Flatchatter

              The market is the best controller of rents. When the legislature intervenes, it is favouring one party or class of people over another. How is this justified? If a prospective tenant is prepared to pay more rent at the end of an agreed term, why should the current tenant be preferred?

              #69531
              Jimmy-T
              Keymaster
              Chat-starter

                The market is the best controller of rents. When the legislature intervenes, it is favouring one party or class of people over another.

                I see your point but isn’t allowing market forces to dictate rents favouring the fortunate over the unfortunate?

                The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
                #69534
                Listohan
                Flatchatter

                  The market is the best controller of rents. When the legislature intervenes, it is favouring one party or class of people over another.

                  I see your point but isn’t allowing market forces to dictate rents favouring the fortunate over the unfortunate?

                  Yes. But whose job is it to level that playing field? Do the same expectations apply to sales requiring a vendor to accept less than the highest bidder is offering?

                  #69536
                  Jimmy-T
                  Keymaster
                  Chat-starter

                    How about if, at the beginning of every financial year, landlords who wanted to take advantage of negative gearing agreed not to raise their rent in the next 12-month period?  And if they didn’t sign up for that, then “market forces” would determine their rents (provided they took Airbnb out of the equation).

                    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
                    #69537
                    Listohan
                    Flatchatter

                      How about if, at the beginning of every financial year, landlords who wanted to take advantage of negative gearing agreed not to raise their rent in the next 12-month period? And if they didn’t sign up for that, then “market forces” would determine their rents (provided they took Airbnb out of the equation).

                      In a market with many buyers and sellers, “market forces” determine the price all the time. Politicians seeking your vote may tell you otherwise. But measures designed to prefer one class of constituent to another usually backfire over time.

                      #69539
                      Jimmy-T
                      Keymaster
                      Chat-starter

                        But measures designed to prefer one class of constituent to another usually backfire over time.

                        The evidence would support this assertion, at least thus far, but I don’t think doing nothing is an option. Saying “it is what it is” isn’t an answer, it’s a form of surrender.

                        The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
                        #69540
                        Listohan
                        Flatchatter

                          Two months before each lease expiry date, the practice of an agent I know is to offer a rent increase of $x if the tenant signs up for a similar term or $2x if they don’t commit to a term. That seems less cumbersome than tying the figure to any sort of tax deductions administration complexity.

                          Given the increasing burden of land tax, not to mention the opportunity cost of not putting or keeping the money in the bank, contrary to what many people think, all the tax concessions do is attempt to keep private landlords (are there any others?) in the market. Keep sticking pins in them and see what they do.

                          #69549
                          Jimmy-T
                          Keymaster
                          Chat-starter

                            attempt to keep private landlords (are there any others?) in the market

                            There are corporate landlords.  A few years ago, during the Global Financial Crisis, Meriton started letting apartments that they found difficult to sell.  And Mirvac, among others, are major players in the build-to-rent sector.

                            The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
                            #69614
                            Listohan
                            Flatchatter

                              attempt to keep private landlords (are there any others?) in the market

                              There are corporate landlords. A few years ago, during the Global Financial Crisis, Meriton started letting apartments that they found difficult to sell. And Mirvac, among others, are major players in the build-to-rent sector.

                              Major, but not dominant, as they are in Europe especially given the amount of money super funds have that need a home and the nature of their long term liabilities to fund members. There must be a reason they aren’t bigger players. Are they myopic about good deals? Is land tax the problem? I understood Mirvac’s offerings were more like resorts, hardly a major need presently.

                              #69621
                              Jimmy-T
                              Keymaster
                              Chat-starter

                                There must be a reason they aren’t bigger players. Are they myopic about good deals? Is land tax the problem? I understood Mirvac’s offerings were more like resorts, hardly a major need presently.

                                Historically there has been a reluctance to encourage build-to-rent due to a perception that they would be cheap and nasty and targetted at the lower end of the demographics.  But states and LGAs are now realising that they can be very nice places indeed and  significant players in the market.

                                As for them being resorts, I’ve been in a Mirvac development and it was clean, well-appointed and had plenty of facilities. Renters were able to chose their own colour schemes and the basic lease was for one year with rent increases locked to the CPI. On the other hand, tenants couldn’t park their cars in their apartments.

                                The residents i spoke to were very happy, not least because there was no strata committee faffing around getting involved in stuff they didn’t need to, or ignoring issues where their attention was required.

                                Build-to-rent is one of the fastest-growing sectors in the accommodation market and it will become increasingly significant (though not dominant, because the rents are higher).

                                 

                                The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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