Review of the Residential Tenancies Act 1995 – Proposed Reforms
Response from Cross Southern Pty Ltd, trading as Southgate Property Management
I Rebecca Day, as General Manager of Southgate Property Management, offer the following suggestions
/ comments in relation to the proposed Amendments. I have listed my comments in relation to each
proposed reform. In addition, I feel as though there are a number of items that have not been
addressed / considered in the reform which are critical to ensuring effective property management and
operation of the private housing sector moving forward. I have listed these comments under ‘Items
omitted from the discussion paper’.
Should you have any questions or queries, or require further clarification, please do not hesitate to
contact me on
.
Items omitted from the discussion paper
1. Bond Requirements. Currently bonds are only required to be 4 weeks for properties under $250
and 6 weeks for properties over $250. We propose that ALL bonds are increased to 8 weeks. This
will ensure landlords exposure to financial loss is reduced, particularly in the event a tenant defaults
in their rental payments. Items that have contributed to the current bond amount being insufficient
are;
a. The process to evict a tenant from non payment of rent currently vastly exceeds 4 weeks
b. The huge escalation in the cost of water has contributed to current bonds being insufficient
c. The general cost of repairs / replacement of damaged items has increased
2. Pet Bonds. Currently there is no provision in the Act to allow the taking of a Pet Bond, even when
agreed between the parties. This needs to be changed and a Pet Bond should be allowed to be
obtained and lodged with the RTT to an amount agreed between the parties, not exceeding 8 weeks
rent.
3. Licensing of Agents. We believe that Property Managers should be licensed by way of a mandatory
Property Management course that must be undertaken and completed within 6 months of acting as
a Property Manager. Additionally consideration should be given in making Property Managers
Mandatory Notifiers to agencies in the instances of child abuse and neglect.
4. Registered Land Agent to Operate a Trust Account. We believe this legislation also needs to change.
There are numerous instances of Property Management companies operating independently with
no Sales division. Currently the course to become a Registered Land Agent focuses heavily in the
Sales area which is completely irrelevant to the operation of a Property Management Trust Account.
Consideration to the operation of a Property Management Trust account MUST be reviewed and
provision for a separate stand alone registration WITHOUT Sales be included.
5. Varying Agreement by Mutual Consent. We believe their should be provision made that the
tenancy agreement terms and conditions can be amended at any time during the tenancy, provided
it is by mutual consent of both parties, and agreed to in writing.
DISCUSSION PAPER
Recommendations 1, 2 & 3(Lifestyle Villages, Non exempt educational institutions and Vendor tenants)
Agree – my concern is this will provide further workload for the already stressed and poorly staffed
Tenancies division of Business Services. These appear to be necessary changes, however consideration
MUST be given to further staffing of Business Services
Recommendation 4 (Standard Form Agreement)
We agree that binding a tenant to an application form, where no VERBAL agreement has been entered
into is unfair, particularly as it is often a requirement to apply for numerous properties at once. We
agree that that tenants should not be held to an application in this circumstance.
Our concern is that if we withdraw this clause does it then protect the landlord in the event there is
VERBAL acceptance between both parties? It is common for a tenant to accept a property, the
marketing ceases and then a week or 10 days later, just before the tenant is about to occupy the
property they change their mind and do not wish to proceed. If the lease is not yet signed, where is the
protection for the landlord if the application form is not binding? In this instance the landlord can be
financially impacted as the marketing process is required to begin again.
Additionally we strongly oppose having a Standard Form Agreement as we are concerned not only about
the quality of this documentation, but the slow response from Government to amend this document as
and when is required.
Recommendation 5 (Landlord details)
We strongly agree with this recommendation.
Recommendation 6 (Information on adequate instructions)
We agree that where possible this is to be provided, however can forsee some difficulties in obtaining
appropriate instructions where manuals have been lost or not transferred at the time of sale and items
are no longer manufactured.
Recommendation 7 (Bond refunds)
Agree
Recommendation 8 (CPI)
I believe that it is irrelevant that rents exceeding $600 per week require further payment in advance.
Additionally to adjust this amount by CPI is also irrelevant, as the increases to rent over the past 10
years have grossly exceeded CPI year on year.
Recommendation 9 (Rent Collection Agency)
I believe that forcing tenants to use a rent collection agency currently contravenes the Act? Regardless I
believe that only 1 other option is should be required. Whether that be BPay, Centrelink Direct Credit
etc. The option of paying by CASH needs to be eliminated for the security and safety of employees.
Recommendation 10 (Landlords Rent Records)
Strongly Agree. I believe that a PDF template of how to lay out this record should be provided on the
Business Services website. This would eliminate the confusion on how to record the rent.
Recommendation 11 (Provision of Rent Records)
Strongly Agree
Recommendation 12 (Electronic Rent Payment)
Strongly Agree
Recommendation 13 (Landlord Right of Entry)
Agree with the times proposed. It is important to allow access to a landlord on the weekend as light for
outside building maintenance is often a factor.
Recommendation 14 (Negotiate Entry)
Strongly Disagree. It is not feasible for a landlords agent to negotiate entry and effectively manage a
portfolio of properties. Properties are inspected in groups for effective time management. The flow on
effects and costs of having to travel to different area’s at different times to suit a tenant is not feasible
for the industry as a whole.
Recommendation 15 (Inspection Period)
I agree with providing the tenant a time frame for inspections to be carried out, however increasing this
timeframe to 3 hours would be more effective, particularly in the instance there is travel required.
Recommendation 16 (Gardening)
Agree
Recommendation 17 (Re-entry for breach)
Agree
Recommendations 18 – 24 (Registrars, Juridisction, Priciples of Equity, Small Claims, Protection
against self incrimination, Application to vary or set aside order, Appeals)
Agree
Recommendation 25 (Landlord responsibility for repairs)
Agree, however we also need to be cautious about using the word ‘reasonable’. Each case will need to
be considered upon its merits.
Recommendation 26 (Tenant’s responsibility for lost property)
Agree
Recommendation 27 (Recovery of Expenses)
Agree. I can forsee landlords passing on the cost to tenants of late water recovery charge. I.e if the
tenant does not pay the bill on time the late recover charge could be added on? It is common for a
tenant to be continually in arrears for overdue water accounts. The financial cost to bill this account,
post out reminder notices, ring, sms etc is onerous and is paid for by the landlord.
Recommendations 28 & 29 (Disclosure of impending sale of a property)
Agree
Recommendations 30 & 31 (Open inspections and sale of the property)
Agree
Recommendation 32 (Statutory Charges)
We agree that statutory charges should be billed timely, however ‘as and when they are received’ may
need interpreting. For example currently we bill over 680 tenants every quarter for their water
consumption and quarterly supply charge. This is a huge and onerous task, particularly as we need to
determine has each tenant been in the premises for the entire length of the billing period etc etc. To
prepare the 680 accounts can take up to 4 weeks to be carried out. Does this qualify for ‘as and when
they are received’? We also believe that the ‘accurate particulars’ should only be provided ON
REQUEST. To generate a tenant invoice with all the details of the SA Water account, with its different
tiers and meter readings is too onerous and may not be possible for some software systems. To provide
each tenant a copy of the invoice is also a burden, both in time and paper consumption, adding on
another unnecessary cost.
We recommend that this wording be amended to read ‘Landlords must pass on if requested the
accurate particulars of water accounts for which the tenant is responsible, in a timely manner.
Recommendation 33 (Agreement for a fixed term)
We recommend that this notice period be only 21 days, in line with that of a Periodic Agreement. This is
ample time to secure another tenancy.
Recommendation 34 (Termination by the landlord)
We agree with the suggestion in principal, however in reality it does not work. For example if you are
severing a Form 2 for rent arrears and sending it once the tenant is only 7 days in arrears, you can only
ask for the one payment in that time frame. Meaning if the tenant pays rent fortnightly, you can only
ask for the 1 x fortnight (another 7 days rent), however the tenant has 15 days to remedy the breach,
meaning that they could comply with the Form 2, but still be in breach!!?? What is the point? Unless
Recommendation 40 is brought into effect, this is useless.
Recommendation 35 (Compensation for Abandonment)
Strongly Agree. This is a very necessary recommendation to be included, as it is common for tenants
who want to break their lease (as they have bought a house, built a house, want to move elsewhere etc)
to play the system and vacate on a Form 2 so that they are not responsible for lease break costs.
Additionally with the huge increase in water charges it is common for tenants to not pay, however
landlords are scared to serve the Form 2 for breach in case the tenant vacates the premises, thus
incurring added expenses. By adding this clause it will give an effective measure to for landlords to
chase statutory charges that does not currently exist.
Recommendation 36 (Vacant Possession)
Agree
Recommendation 37 (Terminate Tenancy if Premises uninhabitable)
Agree. However who is to determine that it is uninhabitable? Will a builders report suffice?
Recommendation 38 (HI Notice Termination)
Disagree – how can the agreement then terminate? A housing notice should not be a shield for either
party. However there are genuine reasons that a landlord may need to terminate. Perhaps an
application to terminate could be submitted to the tribunal?
Recommendation 39 (HI Notice Rent Arrears)
Agree. This needs to be extended to include Statutory Charges so that unpaid water and supply charges
can be effectively followed up.
Recommendation 40 (Vacant Possession for repeat rent arrears)
Strongly Agree.
Recommendation 41 (Termination by the tenant)
Agree
Recommendation 42 (Tenants to terminate)
Agree
Recommendation 43 (Notice of hearing)
Agree
Recommendation 44 (Definition of Interested Parties)
Agree
Recommendation 45 (Abandoned Goods)
Agree to reduce this period to 30 days. With regards to documents I also agree, however suggest that it
is any ‘visible’ document. It is common in the event of abandoned goods for there to be numerous
rubbish bags at the premises. It is not feasible to search through trash for them!
Recommendation 46 (Enforcement of Possession orders)
Agree (I was not aware that it could occur any other way!)
Recommendation 47 (Enforcement of Possession orders)
Agree
Recommendation 48 (Mediation)
We agree that the mediation order should operate is if it had been made by the tribunal. We also
believe it is necessary for there to be a time limit for mediation to be undertaken and a provision for
either party to request a hearing if mediation is unsuccessful. Additionally it needs to be clear if a
lodgement fee is payable for mediation, and whether it is due and payable again if mediation is
unsuccessful and a hearing is required.
Recommendations 49 - 65 (Boarding / Rooming Houses)
Agree – my concern is this will provide further workload for the already stressed and poorly staffed
Tenancies division of Business Services. These appear to be necessary changes, however consideration
MUST be given to further staffing of Business Services
Recommendation 66 (Bonds – Residential Parks)
Agree – my concern is this will provide further workload for the already stressed and poorly staffed
Tenancies division of Business Services. These appear to be necessary changes, however consideration
MUST be given to improving the staffing of Business Services
Recommendation 67 (Definitions)
Agree
Recommendation 68 (Residential Tenancies Fund)
I believe the Act is not currently administered or enforced appropriately as the current delays at the
residential tenancies are unsatisfactory. I do not believe that extending the purposes of the fund will
assist in reducing these delays and that every available funding measure needs to be given to improving
the existing service, not the creation of additional services.
Appendix A – Residential Tenancy Databases
I have sincere concerns about the proposed amendments to the use of Residential Tenancy Databases.
With relation to the amendments we have listed the following;
13.1 Application
Understood and agreed
13.2 Notice of usual use of database
Understood and agreed
13.3 Notice of listing if database used
Strongly Disagree. To inform the person in writing that a database holds information on them is
onerous, particularly as RTD’s are used for both positive and negative information. This information
should be supplied on request only, and verbal information should suffice. It is unfair and far too
onerous a task to put this responsibility on the person carrying out the check. The onus of informing a
person that they are going on the database should lie with the listing agent.
13.4 Listing can be made only for particular breaches by particular persons
We agree that the information in the listing must only relate to the breach and must be accurate,
complete and unambiguous.
However we strongly disagree that the tenancy agreement must have ‘ended’ before a person can be
listed. This is ridiculous. If a tenant is continually in breach of their agreement, and is in the process of
being evicted for rent arrears or non compliance of another breach, they should be able to be listed. If
they are not listed, the tenant has the opportunity to secure another premises to an uninformed
landlord, who then may suffer the same or similar loss. This then renders the primary purpose of the
database useless. How is this fair or effective?
13.5 Further restriction on listing
We agree that a person should be notified that they have been listed on a RTD, the details of the listing
and the details of the RTD. However to give the person 14 days to review the details before it can be
listed is completely unfair to the unsuspecting landlord, and once again renders the whole RTD useless if
the tenant has had the opportunity to secure another tenancy before they are listed. We strongly
believe that the review process MUST be removed. Additionally in the instance of an abandoned
premises, it is not feasible for the tenant to be given a copy as a forwarding address is not supplied.
13.6 Ensuring Quality of Listing
Understood and Agreed
13.7 Providing a copy of personal information listed
Understood and Agreed
13.8 Notifying relevant non-parties of Tribunal order about listing
I believe this is an unnecessary and onerous task for the residential tenancies tribunal, and this
responsibility should not lie with them, but the listing agent. Lets not create more work for them!
13.9 Keeping personal information listed
I believe that 3 years is no where near long enough. A minimum of 5 years at least.