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Wednesday, April 17, 2024

Better Renting: Landlords must pay costs of forced moves

Landlords, not tenants, should pay the cost of forced moves, says Canberra tenant advocacy organisation Better Renting in their response to an ACT Government consultation paper.

In August, Attorney-General Shane Rattenbury said the government would amend the Residential Tenancies Act 1997 to end no cause evictions, and released a discussion paper for the public to comment on.

In their submission, Better Renting have called for landlords to offer tenants financial compensation (a rent waiver equal to four weeks of rent) if they ended tenancies when their tenants were not at fault, for instance, to move into or to sell the property.

Better Renting executive director Joel Dignam believes this would discourage unwarranted terminations and putting tenants through forced moves, and reduce the financial impact on tenants. If the tenant were forced to move, it would at least offset the financial and emotional burden.

Tenants needed more protection against “frivolous” terminations, because moves were financially and psychologically stressful for renters, Mr Dignam said.

Canberra renters have said they dread nearing the end of a fixed-term lease, or have put off having children because of the uncertainty of renting.

“Being forced to move places a huge burden on people who rent,” Mr Dignam said.

“The monetary cost can be in the thousands, and people may also have to take time away from paid work or use up annual leave. It’s a serious mental stress that causes worry and anxiety. It’s not just the moving, it’s also the difficulty in finding a place to move to. And many people also point to the chronic stress of being worried about a forced move that might happen.”

One renter, Peter Schwarz, said financial compensation was less important than avoiding the anxiety he felt every time he neared the end of a fixed-term lease. After recent involuntary moves, he dreads the prospect of another notice to vacate, and said that he sometimes leaves his things packed in boxes just to make the next move less stressful.

“I get really anxious about three months before the end of my lease, because I don’t know if I might have to move again,” Mr Schwarz said.

“If I don’t get a notice about rent increase, it’s a red flag, and I wonder if it means that they won’t renew my lease.

“My whole life revolves around this worry that I’m going to have to move. I don’t like to use annual leave to take a holiday, because I’m worried I’ll have to use it to move.”

Another renter, Peta Stamell, put off starting a family because of the insecurity of renting. She recently bought her own place in Lyneham, and is expecting her first child.

“When I was a renter, I felt like I couldn’t make long-term plans,” she said. “I didn’t want to have a child, because I was worried about what it would mean having to move every year.

“I was required to move on average about once a year. I never felt like I had a home, merely places to stay for a while. Landlords and estate agents acted as though I were a guest in their investment properties, rather than a paying tenant utilising a vital service they had opted to provide.”

A third renter, Felicity Wilkins, moved into a rental property in early 2020, only to be told to vacate three weeks later; the owners wanted to move back in as their overseas posting had ended due to COVID-19. Already in debt from her move, she was forced to cover her moving costs through an online crowdfunder. She may face another move soon, as her current rental will soon be up for sale.

“As a single parent, moving isn’t easy. I try to save up to cover the costs of a future move, but it’s hard when rent is so expensive. You go without to try and save even a little. And then the struggle to find a new house causes me relentless anxiety. I have trouble sleeping. The anxiety feels like I’ve been punched in the chest; it makes it difficult to focus on other major responsibilities like work, home, or schooling,” she said.

“It’s not just the financial cost, it’s the emotional cost. It’s always the question of when, when is it going to happen? How long have I got here? When am I going to have to move my child again?”

Better Renting has asked renters to show their support by signing a petition on their website.

The ACT Government’s submissions close on Friday. People can have their say via: https://yoursayconversations.act.gov.au/expanding-rights-renters.

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