'No-cause evictions' and bidding on rental properties could soon be banned in the ACT, with the government opening up a draft bill on rental reforms for public consultation.
The Residential Tenancies Amendment Bill 2022, set to be tabled in the ACT Legislative Assembly next week, is intended to support Canberra renters as the cost of living rises and pressure increases on rental availability.
The current rental laws allow a landlord to terminate a tenancy agreement for no reason, giving their tenant 26 weeks' notice.
Under the proposed new laws, landlords would still be able to terminate a tenancy agreement for legitimate reasons, including damaging the property or failure to pay rent.
A proposed new termination clause would also allow tenants or landlords to terminate the agreement where one party threatens, harasses, intimidates, or abuses the other party.
Along with the removal of no cause evictions, the bill proposes to make it an offence for landlords or agents to solicit rental bids, and ensure tenants can easily grow food at their rental property.
The draft bill also introduces mandatory minimum property standards, such as energy efficiency standards, which landlords will be required to disclose if a property does or does not meet.
If those standards are not met, tenants will be able to seek a reduction in rent, termination of their tenancy, or even seek compensation.
It comes as renters continue to deal with high prices in the capital.
Data from CoreLogic shows it is still more expensive to rent in Canberra than anywhere else in the country.
Landlords need 'legitimate reason' to evict tenants: Attorney-General
ACT Attorney-General Shane Rattenbury said the bill was intended to modernise rental rights in the territory.
"With growing pressure on rental affordability and availability, the ACT government is modernising tenancy laws to create more secure housing and a fairer rental system for all Canberrans," he said.
"The ACT government has committed to end no-cause evictions to help address the power imbalance that currently exists between landlords and a tenant."
Mr Rattenbury said the removal of no-cause evictions was sopmething that many people had called for during previous community consultation on the bill last year.
"We heard from tenants that removing no-cause evictions will give them better security of tenure and greater confidence to assert other tenancy rights without fearing eviction," he said.
"The proposed reform strikes a careful balance of giving tenants better security of tenure, while also ensuring landlords can continue to manage their properties effectively."
The ban on landlords or agents soliciting rental bidding is intended to ensure a just system that stops renters from having to enter bidding wars over properties, according to Mr Rattenbury.
"This proposal ensures that agents and landlords can't solicit bids to pit renters against each other and raise the rental price. That's not a fair system."
Changes positive, but gap remains around rental bidding: Better Renting
Joel Dignam, the executive director of rental advocacy group Better Renting, said the proposed changes were overall positive, and would see more Canberrans able to rent securely.
"With over 50,000 people renting in the ACT, these changes will make it easier for people who rent to have secure, stable homes," he said.
Mr Dignam said the proposed removal of no cause terminations would make it possible for people to exercise other renters rights without fear of retaliation from their landlord.
"For example, we know of a pensioner who opposed a rent increase because it was excessive. That person later got a no-grounds notice to vacate. This was retaliation, pure and simple," he said.
But Mr Dignam said while the proposed reforms were positive, there was more that could be done to protect renters.
"Despite this positive action on evictions, a gap remains around rent-bidding," he said.
"A measure to stop landlords or agents from accepting rent bids would have been a better solution here."
Real Estate Institute of the ACT chief executive Michelle Tynan said there were concerns landlords would give up their investment properties if the legislation was passed.
"Which, for our already burgeoning crisis within the private rental sector, could be catastrophic for tenants."
The institute has previously argued that removing no-cause evictions was unnecessary, because the law already allowed for tenants to appeal evictions.
Ms Tynan said the REI had argued for a "three-strike" policy to be introduced, where tenants were given notice three times before being evicted, if the requirements were not met.
"Because if they're not maintaining the property and they exit the property, then the landlord has to then remediate the property to a standard whereby it can be re-leased."
ACT residents can comment on the proposed rental reforms via the government's YourSay website.
