Renters' Tails are Wagging Over Changes to Victorian Tenancy Laws

New rights for renters
Proposed reforms to the Residential Tenancies Act (RTA) to be introduced by the Victorian government in 2018 are designed to rationalise what is seen by many as an unfair and unnecessarily restrictive rental market. Rental increases will be limited to once a year, rent ‘auctions’ outlawed and a blacklist of unreasonable landlords and agents is being compiled.

All good news, but perhaps the one that will cause the most joy to some renters is the relaxing of the ‘no pets’ clause in rental contracts.

What are the effects of the ‘no pets’ clause?
At present, landlords and agents are free to include – and often do so – a non-negotiable ‘no pets’ clause in leases with no supporting reason. In a tight rental market, potential renters with pets have been disadvantaged and their options severely narrowed.

For many, the clause necessitates finding a new owner for a pet or surrendering the pet to an animal shelter. When the chance of adoption for the animal is slim, this is often a death sentence.

In a 2017 submission to the RTA review, RSPCA Victoria notes that, in the previous financial year, their shelters accepted 717 animals surrendered because the owner was unable to take them to a new rental home. This is almost 20 per cent of all animals for that year. The majority were cats or dogs, with an occasional rabbit or guinea pig. The Lort Smith Animal Hospital identifies ‘moving to a rental property where pets aren’t allowed’ as a key reason for surrendering an animal.

How will this change?
Under the changes, a blanket ‘no pets’ clause will be disallowed. Consent will still be needed from a landlord or agent, but reasons for refusal have to be stated. The chief executive of Tenants Victoria, Mark O’Brien, says the reform places the onus on landlords to prove an animal would be a nuisance or cause damage before refusing consent.

Why is this change important?
RSPCA Victoria believes that easing the way for pets in rentals will significantly and positively affect the lives of people who rent their homes. They state that “research consistently demonstrates that pet ownership is strongly correlated with a broad range of physical and psychological health benefits – from better cardiovascular health to lower rates of depression and stronger social connectedness”.

As well as the companionship and enjoyment that pets give their owners, they provide a sense of security and comfort. This is especially important to renters living on their own. Victorian Consumer Affairs Minister Marlene Kairouz believes the relaxation of pet clauses will address this need. “We’re making sure everyone has the chance to have a safe, secure and affordable home – whether you own it or not,” she says.

Who will benefit?
The reforms have implications for renters of all ages and incomes. The term ‘Generation Rent’ has cropped up recently, referring to larger numbers of millennials embracing long-term, or potentially lifetime, renting. Where previous generations chased the Australian home- ownership dream and there was a stigma attached to renting, evidence is pointing to rental as a viable option, for both financial and lifestyle reasons.

Australian Bureau of Statistics figures indicate that the proportion of renters to buyers is on the rise, and this includes numbers of downsizing retirees opting for a mortgage-free lifestyle with low maintenance costs.

In a recent address to the National Press Club, economist Chris Richardson said, “although there are elements of rental stress – and governments can be involved in helping to do things around that … rents today make a lot more sense than housing prices.” One of these stresses, the inability to keep a family pet or acquire one during an extended rental period, will be removed with the RTA reforms.

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What conditions apply?
Written consent must be obtained from landlords by potential renters. The changes don’t mean an open door to a noisy destructive menagerie and permission can be refused in such cases.

The RSPCA’s submission recommended checks and balances to protect property owners’ financial interests. These include transparency about numbers and species of intended pets, notice if you intend to acquire a pet, pet references and information about registration, vaccination and desexed status.

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Prior to these changes, bonds were sometimes increased for renters wishing to have a pet in the property. Bonds can no longer be increased above one month’s rent (when rent is less than double the current median weekly rent of $760). Tenants will be responsible for any cleaning or fumigation related to damage from a pet that clearly exceeds general wear and tear.

What’s your role?
Apart from legal obligations, in order for the wheels of change to turn smoothly, renters need to ensure their pets don’t cause the problems that critics of these reforms predict. Noise, damage and danger from animals will quickly alienate neighbours, landlords and agents, and termination of a lease is legal in these cases.

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