Impacts of Residencial Tenancies Amendment Act 2024 to Renters
Last week, we covered the newly passed Residential Tenancies Amendment Act 2024. The approved reforms are designed to enhance the renter’s protections and promote fairness. It aims to reshape the rental landscape in favour of stability, inclusivity and affordability.
For today’s article, we will enumerate the key benefits of the passed reforms and the changes they bring to renters.
Full copy of the Residential Tenancies Amendment Bill 2024
Impacts of the Reforms on Tenants
AFFORDABILITY AND TRANSPARENCY
- Fee-Free applications
One of the most immediate benefits for renters is the removal of application costs related to background checks. This change eliminates a financial barrier many tenants face when applying for properties, making the rental process more accessible and affordable.
- Capped Rent Increases
Under the new law, rent increases are now capped at one adjustment every 12 months, providing tenants with predictability and relief in managing their finances. This change ensures that renters won’t face unexpected increases during their lease term, making budgeting easier in an increasingly competitive market.
SECURITY AND STABILITY
- No More “No Grounds” Evictions
Landlords are no longer allowed to terminate a lease without a valid reason. Tenants can now feel more secure knowing their tenancy cannot be abruptly ended without cause. Valid grounds for ending a lease—such as property sales, significant renovations, or personal use—must be supported by evidence, with penalties imposed for false claims.
- Extended Notice Periods
Tenants now benefit from longer notice periods when a lease is set to end. For fixed-term leases:
- 60 days for leases up to six months.
- 90 days for leases exceeding six months. For periodic leases, a minimum of 90 days’ notice is required. These changes provide renters with more time to plan their next steps, reducing stress and uncertainty when leases are not renewed.
CONVENIENT AND COST-FREE PAYMENTS
- Fee-Free Rent Payment Options
Renters can now enjoy greater flexibility and fairness in how they pay their rent. Landlords are required to offer fee-free electronic payment options, such as bank transfers or Centrepay, ensuring tenants are not burdened with unnecessary processing fees.
INCLUSIVITY
- Pet Ownership Rights
The amendments address a common renter concern: pet ownership.
Tenants can now apply to keep pets, with landlords required to respond within 21 days. Landlords can only refuse based on reasonable and specific grounds. If no response is given within the timeframe, the application is automatically approved. This promotes inclusivity and recognizes the importance of pets for many renters.
The changes introduced by the Residential Tenancies Amendment Act 2024 are a welcome step toward creating a more balanced and equitable rental market. By addressing affordability, improving security, and promoting inclusivity, these reforms empower renters with greater control and protection.
However, the long-term success of these measures will rely heavily on consistent enforcement and the ability to strike a fair balance between tenant rights and landlord responsibilities. As these policies take shape, renters can look forward to a future of increased stability and fairness in the housing market.