Legislative Council Fifty-First Parliament, Third Session (51-3) 51 3 Parliament of South Australia Legislative Council published Question Time Residential Tenancies RESIDENTIAL TENANCIES The Hon. I.K. HUNTER Legislative Council RESIDENTIAL TENANCIES The Hon. I.K. HUNTER (15:02): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about tenancies. Leave granted. The Hon. I.K. HUNTER Legislative Council The Hon. I.K. HUNTER: There has been media commentary of recent times concerning issues with tenants and their rental properties. However, not much focus has been put on the obverse of the situation, namely, the responsibilities of landlords to tenants. What is being done to ensure that landlords are fulfilling their obligations in relation to managing properties and allowing tenants to enjoy their peaceful occupancy? The Hon. G.E. GAGO Legislative Council Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (15:02): Record numbers of landlords and agents have received fines and warnings this financial year as the Office of Consumer and Business Affairs Tenancy Branch clamps down on breaches of the Residential Tenancies Act 1995. Warning and expiation figures to date have ballooned nearly 300 per cent since the 2006-07 financial year, during which there were 27 expiations and 168 warnings. This financial year so far there have been 124 expiations and 420 warnings. Agents and landlords should be warned that, if they fail to provide timely lodgments of tenants' bond money, or if they fail to do so, they can expect to hear from the tenancy regulator, OCBA. OCBA is making a conscious effort to change the relaxed attitude of some agents and landlords about their legal responsibilities, while also sending them a message that late or non-lodgment of bond money is a serious breach. Failure to comply can sometimes indicate that agents are experiencing trust account and cash flow issues. Agents and landlords must lodge bond money with the Tenancy Branch within 30 days and seven days respectively. The Tenancy Branch will explore whether agents who have received multiple expiations are experiencing trust account or cash flow problems. The use of illegal clauses in tenancy agreements by agents and landlords is also a focus of OCBA's crack down. Tenants can be unsure of their rights and can sign tenancy agreements that include unfair clauses or are contrary to the act. Agents and landlords often have the advantage of knowing more than the tenant about how rental agreements work. Sometimes they can take advantage of this by trying to slip in conditions and clauses that are inappropriate, and we are letting them know that this is just not on. For example, the tenancy agreement may have a clause specifying the tenant to have the carpets professionally steam cleaned at the end of a tenancy agreement or to regularly prune trees in the backyard, when the tenant is only required to ensure that the carpets are left in a reasonable state, allowing for wear and tear, and is not obliged to prune trees but is only required to reasonably maintain the gardens. The tenant is not obliged to do either and, today, I am putting agents and landlords on notice that, if they are caught engaging in this sort of behaviour, they can be subjected to warnings, expiations and possibly even further investigation. The message to agents and landlords is: we are watching you; if you are a repeat offender, watch out, be afraid. For more information interested people can contact the Tenancy Branch of OCBA or visit the website.