Fairer fees and charges – proposed reforms
The Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill 2024 proposes reforms to strengthen renters’ rights and stabilise rents. The Bill is not yet law and has been referred to the Housing, Big Build and Manufacturing Parliamentary Committee for consideration.
Fee-free option to pay rent
Some renters are required to pay rent using payment options that either aren’t convenient or incur costs in addition to bank fees or other account fees that are usually payable for transactions.
The Bill proposes amendments to ensure renters have a fee-free option to pay rent that is reasonably available. This change will make paying rent fairer, more affordable and more convenient.
Disclosure of financial benefits
Some rental property owners or property managers offer rent payment methods that give them a financial incentive. The Bill proposes to require rental property owners and property managers to declare any financial benefits they may receive from a renter using a particular payment method. This change will make fees more transparent.
Provide renters with utility bills promptly
Rental property owners can pass on some service charges to renters, such as for water consumption, if certain criteria are met. Current rental laws do not set the timeframe for providing these charges to renters for payment.
Some renters receive multiple bills at once, often when their tenancy ends, which can be a large cost they haven’t planned for. It can also prevent them from monitoring and managing their usage.
The Bill proposes to set the timeframe for when a rental property owner or property manager must provide a copy of a utility bill to a renter. This time will be 1 month from when the rental property owner receives the bill from the relevant authority.
The renter will not be required to pay if the utility bill is not provided within four weeks. This change will make fees and charges fairer.
Cap reletting costs
Renters who want to end a fixed term agreement early may be required to pay the reasonable costs incurred by the rental property owner in reletting the property. These costs are called reletting fees, and current rental laws provide little guidance about what are considered reasonable costs.
Reletting costs are a barrier to renters moving to more suitable or affordable housing, and deter renters from entering into long-term tenancy agreements.
The Bill proposes to cap reletting costs to a fixed amount based on the amount of time left on a lease.
Capping reletting costs to a prescribed amount will allow renters to move more easily, while continuing to compensate property owners for costs involved in reletting the property. Limiting these fees may also encourage longer tenancies, as renters will know the cost to end a tenancy.
Capping reletting costs is also a National Cabinet reform under A Better Deal for Renters.