This Decision Regulatory Impact Statement (DRIS) is the first phase of proposed reforms in the current review of the Residential Tenancies Act. 

A summary of each recommendation detailed in the DRIS is outlined in the Executive Summary. Recommendations to make changes to “without grounds” termination provisions in tenancy laws are not proceeding because of current rental market conditions and to ensure certainty for landlords and investors. The Government will also implement a streamlined version of the DRIS recommendation to allow tenants greater freedom to make minor modifications to their rental premises.

The recommendations for phase one of the review aim to:

• streamline the bond application and disposal process
• make it easier for tenants to keep pets in rental premises
• make it easier for tenants to make minor modifications to the rental premises
• provide greater certainty for tenants by reducing the frequency of permitted rent increases to every twelve months.

Work on the “second phase” of reforms will continue in 2023.

Contents:

Executive summary

• Changing landscape
• Security of tenure
• Dispute resolution
• Overview of recommendations

Impact Analysis – relevant considerations

Terminology

Security of tenure

Without grounds terminations

• Issue
• Current situation
• Objective
• Options Considered
• Stakeholder feedback to the CRIS
• Other jurisdictions
• Impact analysis
• Assessment against the objective

Fixed term tenancies

• Issue
• Current situation
• Objective
• Options Considered
• Stakeholder feedback to the CRIS
• Other jurisdictions
• Impact analysis
• Assessment against the objective

Security of tenure - preferred option (NOT PROCEEDING)

• Prohibition of no grounds terminations by the lessor (Recommendation 1)
• Fixed term tenancy agreements
• Termination of fixed term tenancy agreements (Recommendation 2)
• Encourage the use of longer fixed term tenancy agreements
• Social housing providers

Disposal of security bonds

• Issue
• Current situation
• Objective
• Proposal considered
• Stakeholder feedback to the CRIS
• Other jurisdictions
• Impact analysis
• Assessment against the objective
• Preferred option (Recommendation 3)

Resolving residential tenancy disputes

• Issue
• Current situation
• Objective
• Options Considered
• Stakeholder feedback to the CRIS
• Other jurisdictions
• Impact analysis
• Assessment against the objective
• Comprehensive model
• Impact analysis
• Preferred dispute resolution model (Recommendation 4)
• Impact analysis

Frequency of rent increases

• Issue
• Current situation
• Objective
• Options considered
• Stakeholder feedback to the CRIS
• Other jurisdictions
• Impact analysis
• Assessment against the objective
• Preferred option (Recommendation 5)

Modifications to the premises

• Issue
• Current situation
• Objective
• Options considered
• Stakeholder feedback to the CRIS
• Other jurisdictions
• Impact analysis
• Assessment against the objective
• Preferred option (Recommendation 6)
• Operation of the proposed model

Pets in rental premises

• Issue
• Current situation
• Objective
• Proposal considered
• Stakeholder feedback to the CRIS
• Other jurisdictions
• Impact analysis
• Assessment against the objective
• Preferred option (Recommendation 7)

Implementation and evaluation

• Implementation
• Evaluation
• Appendices
• Appendix 1 – Dispute resolution
• Appendix 2 – Dispute resolution
• Appendix 3 – Frequency of rent increases
• Appendix 4 – Modifications to the premises
• Appendix 5 – Modifications to the premises
• Appendix 6 – Pets
• Appendix 7 – Pets

Related information

• Residential Tenancies Act review 
• Review of the Residential Tenancies Act 1987 consultation paper released in December 2019