For Australians to get a fair go at housing: how can we improve protections for renters without negatively impacting the cost, quality and diversity of rental properties?
Around 1 in 3 Australians rent their home. But this number is increasing, and people are renting for longer. For more and more members of the community, it's the only housing option.
Most tenants rent from the private rental market where the owner is a fellow citizen. They are sometimes referred to as ‘mum and dad landlords’ and they play an important role investing in Australia’s rental market.
More people renting means that more people - renters AND landlords - are reliant on tenancy regulation to protect their rights.
So, we have to get those rights, right.
Issue at a glance
🔍 Seek - Let’s look at both sides of the issue
- Strengthening tenants’ rights can make renting a house more secure and more attractive
- More tenants’ rights could increase landlords’ costs, creating higher rents
🎁 Share - Let’s hear your view then listen to others’
- How do we weigh up the interests of landlords and renters?
- Would the economic and social benefits of more security for tenants be better for society overall?
🧩 Solve - Let’s find some uncommon ground
- 7 in 10 Australians agree that the Australian people should play a central role in identifying the right solutions to the housing problem.
⚡️Spark - Let’s make an impact together
- Joining the Amplify community will make change happen.
Our regulations don’t stack up against the rest of the world’s
In Australia, when people rent a property, they enter into a contract known as a rental agreement that outlines the conditions, rights and obligations of both the tenant and landlord.
Each State or Territory has their own unique agreement but all of them contain some leniency for the landlords. There is no national definition of what constitutes a 'decent dwelling’ and the jurisdictional differences mean a landlord could quite reasonably consider where their obligations are lighter and easier.
The rights that tenants have directly impact how secure they are in their tenancy, the value they are able to get from their housing and the lifestyle they are able to lead.
In Australia, 75% of lease terms are for 12 months and notice periods are generally just 30 days. Evictions can be triggered for a wide range of reasons in parts of Australia, with 'no-cause ' evictions being allowed in some states.
Other parts of the world have struck a different balance:
- Germany and the Netherlands have indefinite lease terms, while leases are commonly 2-3 years in France and Hong Kong.
- In France and Germany, notice periods are generally 3 months but can be more.
- Evictions in the UK and France are limited to when there has been misconduct or non-payment of rent.
On the other side, layers of regulation for landlords may also increase rents as the costs to investors rise and they continue to seek a return on their investment.
Our regulations need to find the right balance between the rights of tenants to a safe and secure place to live with the realities of a market where investors are looking for a return.
Renting is less affordable than it used to be
Relative to the amount people are earning rents are increasing. Rent prices across Australia rose by almost 10% between March 2021 - 2022, and 6.8% between October 2023 - 2024. 54% of low-income renters are in rental stress, defined as spending more than 30% of income on rent.
This increase is affecting houses more than units and those on lower incomes more than anyone else. The national deficit of private tenancies affordable to low-income private renters grew from 48,000 to 212,000 between 1996 and 2016.
The Two Ends of the Tenancy Stick
At the heart of this issue are the rights of property owners and those of tenants.
On the one hand, there is a sense of “It’s my house. I have the right to protect it.” On the other hand, it’s a feeling of “It’s my home. I have the right to feel secure in it.”
These positions are equally valid. But there is a delicate balance at play.
Strengthening tenants’ rights is highly likely to make renting more secure and that is attractive for people. Tenants are likely to feel safer and less vulnerable to rent rises, evictions and so on, and have more power in terms of getting repairs, maintenance and improvements done.
On the other side, stronger tenants’ rights could lead to a situation where landlords feel they have to raise rents or divest, which could see fewer rental properties available. That said, a property no longer owned by an investor could be a property owned by someone previously renting.
Policy Personified
Lachie is a 22 year old student who is renting his first flat. It’s not fancy, but it’s in a good area. He has regular maintenance issues that he contacts his landlord about, but he doesn't want to complain too much because he can’t afford to be evicted.
Trevor is Lachie’s landlord. He always tries to be fair to his tenant, but he also has to be mindful of expenses, because if regulations make it too costly to own a rental property, he will have to sell it and evict Lachie.
This fear-based dynamic is not ideal for either party and could either lead to Lachie being evicted or the property falling into disrepair.
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