Yahoo Finance Radical way to punish Aussie landlords who ignore tenants' repair requests: 'Exciting'
A UK council seized the rent going to a landlord who didn't act on repair requests for up to a year and the same type of powers exist in Australia.
Australians are being warned after a landlord in the UK was punished by their local council for ignoring a tenant's requests to do maintenance. The council seized control of the properties and ordered all rent to be funnelled into the repairs until they were completed.
It was the first time in 20 years that the local authority used the power in a major win for renters' rights. Interestingly, that same power exists in a similar form in some parts of Australia.
Joel Dignam, executive director of advocacy group Better Renting, told Yahoo Finance he'd like to see local authorities flex their muscles more here.
"In Australia, there's a real lack of accountability around landlords and enforcing rental laws," he said. "And so to see jurisdictions take an approach of enforcing rental laws and holding lands to account, it's exciting and shows what's possible."
RELATED
What happened in the UK?
A London landlord with 18 properties in their portfolio was called out for not tending to the repair and maintenance requests of their tenants for up to a year.
Other tenants complained that the repair jobs that were done were not satisfactory.
Merton Council got involved and effectively seized the properties from the landlord until all the work was carried out.
Cabinet member for housing, Andrew Judge, said this move was deployed to protect the residents of the properties and warned other landlords that this power would be used again.
Are you a landlord and have a story? Email stew.perrie@yahooinc.com
"We have appointed agents to manage the properties, all rents will be received by the council and we will be applying them to ensure these are safe and decent properties," he said.
"Increasingly, many tenants live in an exploited position. Whether it’s by way of disrepair that is not properly dealt with or rents being hiked to unacceptable levels."
The agents have been assigned to the property for 12 months and once all the repair jobs are finished, any money left over will be returned to the landlord.
The powers were contained in the Housing Act 2004 and UK media called it "one of the first actions of its kind in the country".
How would it work in Australia?
That power isn't held by local councils in Australia. However, there are regulatory bodies in different states and territories that can get involved.
New South Wales
Landlords in New South Wales are bound by the NSW Residential Tenancies Act 2010 and they are obliged to ensure residential premises are kept in a state of cleanliness and fit for habitation.
This includes issues relating to ventilation, plumbing, drainage, leaks, dampness and structural integrity.
“Renters who feel their property does not meet the minimum standards as required by the Act should try to resolve any concerns with the real estate agent or property owner in the first instance," a NSW Fair Trading spokesperson explained to Yahoo Finance.
“Where agreement cannot be reached, parties will be advised of the outcome and recommended to seek independent advice or lodge a claim with the NSW Civil and Administrative Tribunal (NCAT)."
NCAT can make an order that rent is paid to the Tribunal and put "towards the cost of remedying a breach of the residential tenancy agreement or towards the amount of any compensation".
Victoria
A spokesperson for Consumer Affairs Victoria told Yahoo Finance that repairs in rental properties are classed as either "urgent" or "non-urgent".
Urgent repairs have to be done immediately, while non-urgent ones have to be completed within 14 days of getting a written request.
If renters feel their pleas aren't being answered or the job isn't up to scratch then they can apply to the Victorian Civil and Administrative Tribunal (VCAT) for their rent to be paid into CAV’s Rent Special Account.
That money will be held until the rental provider sorts out the problem.
Australian Capital Territory
It's a similar story in our nation's capital where landlords are obligated to maintain their rental properties and ensure they are "reasonably secure" and in "compliance with any minimum standards".
"If a tenant has a dispute with their landlord over the state of repair of their property, they can make an application to the ACT Civil and Administrative Tribunal (ACAT), which can make a range of orders," an ACT government spokesperson told Yahoo Finance.
ACAT can force a landlord to pay compensation to the tenant or order a rent reduction for a period of time. It also has the power to require that all rent is paid directly to ACAT until the Tribunal deems it necessary.
"Landlords in the ACT are also prohibited from taking retaliatory action, for example, terminating a tenancy because the tenant seeks to enforce their rights," the spokesperson added.
Queensland
If repairs aren't organised in a timely way, renters in the Sunshine State can issue their landlord a Notice to Remedy Breach form, which gives the property owner a seven-day window to get repairs fixed.
If that doesn't move the needle then the tenant can apply to the Queensland Civil and Administrative Tribunal (QCAT) for a repair order.
Tasmania
Repairs are split into three categories when it comes to the severity and the time frame required for it to be completed:
General: 28 days
Urgent: (issues related to water, sewerage, electricity) As soon as possible. Tenants are able to get a repairer in themselves and invoice the landlord if the property owner hasn't replied within 24 hours.
Emergency: (for example, a window that was broken in a storm) As soon as possible.
If the works aren't completed within that time frame then the renter can apply to the Tasmanian government for a repair order.
South Australia
Renters can apply to the South Australian Civil and Administrative Tribunal (SACAT), who can order for the repairs to be carried out, compensation related to losses resulting from the non-repair, or the tenancy to end.
If the landlord has refused requests for urgent repairs, then a tenant can organise to have them fixed and give the landlord an invoice from an authorised repairer.
Northern Territory
Landlords have up to 14 days to respond to repair requests in the Northern Territory.
If your landlord does not make repairs or arrangements for repairs, they are in breach of your tenancy agreement and you can apply to the Northern Territory Civil and Administrative Tribunal (NTCAT) for an order that the repairs be carried out.
Western Australia
Landlords have 24 hours to respond to emergency repair requests and there's no time frame for non-urgent issues.
If the property owner doesn't respond to the request within "a reasonable timeframe" then the tenant can serve a breach notice on the landlord.
If that doesn't resolve the issue then the renter can make an application to the Magistrates Court for an order that the repairs or maintenance be undertaken. If the lack of repairs means that part of the property is unable to be used then the renter can also request for a rent reduction until the work is finished.
Repair requests are falling on 'deaf ears'
Dignam told Yahoo Finance that many Aussies are living in horrible situations because of landlord incompetence and inaction.
"We hear from so many renters where their requests are falling on deaf ears," he said.
"They put something out there and it can go on for months. In the Australian system, often your only option is to turn to the tribunal, which can take more time and put renters at risk of retaliation too.
The Better Renting executive director said it's important for renters to know what action they can take.
He has also called for tribunals and government bodies to step up.
"Authorities in Australia have powers like this [UK example], and I think they shy away from using them, and often, these decision-makers are very far removed from what the reality is for renters," he said.
"We'd certainly like to see them as a starting point saying that we're going to make sure that landlords comply with rental laws and use the leaders at our disposal to get that outcome."
The Greens are hoping to hold dodgy landlords and real estate agents to account, with the party pushing to set up the National Renters Protection Authority (NRPA).
The body would be able to launch investigations based on submissions from tenants, and have the power to issue on-the-spot fines of $3,756 to individuals or $18,780 to real estate agencies.
That fine would increase to $15,650 for individuals and $78,250 for agencies if they were found to be repeat offenders.
The Authority could even have the ability to strip an agent's license to practice.
Get the latest Yahoo Finance news - follow us on Facebook, LinkedIn and Instagram.
