Rental bonds revamp
MICHAEL STEDMAN
June 05, 2009 07:00am
A LONG-awaited Rental Deposit Authority has been introduced to end messy disputes between tenants and landlords.
From July 1, Tasmania's 32,000 private rental property tenants will be required to pay bonds to a central authority. It will become illegal for landlords to handle bonds directly.
Consumer Protection Minister Lisa Singh said the existing system was open to abuse by unscrupulous property owners who sometimes delayed returning bonds or did not return them at all.
"This is about taking the drama out of rental bonds and it is about putting the balance back into the rental housing market," Ms Singh said.
"For some time there has been a feeling of imbalance and injustice when it comes to retrieving bonds from landlords."
The scheme was first proposed by former attorney-general Judy Jackson but took more than four years to implement.
Bonds can now be lodged and retrieved through Service Tasmania shops and authorised real estate agents.
Disputes will be heard by a new Residential Tenancy Commissioner.
Tenants Union of Tasmania principal solicitor Sandy Duncanson was pleased renters would now be afforded the same protection as those in other states.
"At the Tenants Union, we often see property owners taking bond and treating it as their own money until the lease comes to an end and the property owner realises they have to put their hand in their pocket and give the money back," Mr Duncanson said.
"We hope that Consumer Affairs is given the resources up front to deal with the expected rise in disputes."
Anglicare chief executive officer Chris Jones said delays in returning bonds often meant disadvantaged tenants could not afford to pay the security on their new properties.
Bonds will be kept in an interest-bearing Treasury account. The scheme is expected to cost $1.5 million over the next five years to administer but when managed bonds start to bear interest, it will be run on a cost-recovery basis.
"Setting up any new system does require funds and input so there certainly won't be any money made for quite some time," Ms Singh said.
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