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Why we should throw out no cause rental evictions

With rental laws up for review and reform by state parliament, Shelter SA’s Alice Clark argues for MPs to back abolishing no cause evictions in the midst of a housing and cost of living crisis.

Sep 12, 2023, updated Sep 12, 2023
Photo: AAP/Flavio Brancaleone

Photo: AAP/Flavio Brancaleone

If you’re a renter or a would-be renter, you’ve got more than enough to deal with right now. You will know just how difficult the market is with an all-time low vacancy rate across South Ausrtralia and trying to weather the storm of unfettered rent increases. Then there’s the cost of living crisis. If you have a rental, you don’t need the added worry of knowing you could be evicted at any moment.

Renting families who once took camping holidays are forced to live long term in caravans and tents because they can’t secure a rental to call home. Others are resorting to sleeping in their cars and having to rely on charities just to feed their kids. Homelessness is on the rise and people who have never needed assistance are coming forward in droves to try to find help. Times are tough.

There are some great landlords out there who give renters a fair go. However, our government and our members of parliament can and should do everything they can to increase the housing security of families who need to rent. So, renters are relieved to hear that South Australia is aiming to move into the 21st century when it comes to the laws that govern where they live. We are in the middle of a review of the Residential Tenancies Act being led by the South Australian Government.

Current rental laws allow evictions for no reason, that is without any wrongdoing or breach of rental agreements by tenants.

These evictions are called “no cause evictions”. The non-renewal of a lease without a reason is also, in effect, a no cause eviction. Abolishing these types of evictions is key to the law reform process. Most other jurisdictions across the country have done so and South Australia is lagging behind when it comes to practices that unfairly see renters sent packing.

South Australians are overwhelmingly calling for change – 68 per cent of the submissions to the government rental law review supported ending no cause evictions.

Uniting Communities, Better Renting, South Australian Council of Social Service, the Anti-Poverty Network and Shelter SA have issued a joint statement advocating for the modernisation of renting laws. Together, they have secured the support of 40 other organisations who are standing behind key changes to the Act outlined in the joint statement.

All the supporter organisations agree that abolishing no cause evictions is critical to the law review. It is not fair to enter into a legal agreement that can be broken by one party without a reason. There are adequate legal grounds for owners and agents to end leases when required, without the no cause argument.

Recent research by Shelter SA revealed that nearly 40 per cent of tenancies were terminated by landlords or agents and 50 per cent of periodic tenancies were ended with no reason given. This unacceptable situation places unnecessary stress on tenants who are too scared to ask for simple repairs and maintenance in case they get evicted.

Another big issue for renters is the huge rent increases we’ve seen over the last couple of years, to rents that were already unaffordable for low-income families. The joint statement supporters want to see rent increases limited to the Consumer Price Index, which is greater than interest rate rises, to protect against opportunistic increases that take advantage of short supply. This change would go a long way to improving the lives of renters.

Decreases in the amount of residential tenancy bonds that can be collected have already been enacted and this is a positive step to help renters with affordability. Hopefully, it will be easier to get a rental with your pet too, an issue that has long caused renters to hide their pets when they apply for new properties for fear of missing out. Energy efficiency in rental properties also requires action, beyond the current review of the Act.

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This unacceptable situation places unnecessary stress on tenants who are too scared to ask for simple repairs and maintenance in case they get evicted.

I look forward to positive developments, but I also wonder how the proposed reforms will move through the parliament when introduced. The opposition, minor parties and cross-benchers have an important role to play in ensuring the Government’s proposed reforms are successful. The joint statement supporters are calling upon them to get behind the modernisation of the Act, especially when it comes to abolishing no cause evictions. It is a must.

With limited sitting days left in 2023, I’m urging our parliamentarians to get a move on and prioritise the passage of the Bill. Without abolishing no cause evictions, the modernisation of the Act will not match the expectations of South Australians or the needs of renters. One third of the South Australian population who are living in rental properties, who are also voters, are watching with interest!

Dr Alice Clark is executive director, Shelter SA

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