No-cause evictions in the ACT would be banned under proposed legislation, with the territory government moving forward with extensive changes to rental laws.
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An exposure draft bill, released on Wednesday, would also include a ban on rent bidding and the introduction of minimum standards for rental properties.
The ban on no-cause evictions would mean landlords would need a valid reason to evict a tenant. Under current laws, landlords can end a lease for no reason as long as a tenant is given 26 weeks' notice.
While the proposed laws would ban no-cause evictions, a landlord would still be able to end a tenancy agreement for legitimate reasons, including failing to pay rent, property damage and if a landlord wants to sell the property.
The bill would also add a new clause that would allow a tenant or landlord to terminate a rental agreement if one party is threatening or abusive.
Attorney-General Shane Rattenbury said the changes would strike a balance between giving tenants better security of tenure while ensuring landlords could still manage their properties effectively.
"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," Mr Rattenbury said.
"The bottom line is people deserve a home to live in and shouldn't be evicted without a legitimate reason. The ACT government has committed to end no-cause evictions to help address the power imbalance that currently exists between landlords and a tenant."
The government pledged to ban no-cause evictions in the Labor and Greens power-sharing agreement. Previously, Labor and the Liberals blocked proposed legislation put forward by Greens MLA Caroline Le Couteur to ban the practice.
Laws would also be introduced to ban landlords and property managers from soliciting bids from prospective renters in order to attain the highest rental price.
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Landlords would also be required to disclose if their property meets minimum standards when advertising the property for rent. A tenant would be given the right to end their tenancy, or seek a rent reduction or compensation where minimum standards are not met.
Further changes to minimum standards for rental properties are also under consideration.
Earlier this year, Mr Rattenbury said he hoped the changes would be passed early next year.
The government undertook community consultation on the potential changes to the Residential Tenancies Act in August last year. A report on the consultation process showed views were mixed between those respondents who identified as tenants and tenants' advocates, and landlords.
"The majority of those who argued against the removal of no-cause terminations from the act identified as either landlords or real estate agents," the report said.
"Several respondents argued that the existing no-cause termination provision gives them important flexibility when dealing with their asset. Many indicated they consider the current no-cause ground is fair and that 26 weeks' notice is a reasonable time period for a tenant to find another property."
The changes would be the latest in a series of amendments to the ACT's residential tenancies act which have taken place in recent years.
Laws were changed to make it easier for tenants to have pets in 2019. Under those changes, tenants only need to ask permission for a pet if it is included in a tenancy agreement.
The exposure draft bill will be tabled in the Legislative Assembly next week. Consultation on the changes is open until August 26.
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