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New survey uncovers widespread fear and anxiety in Australia's private rental market

Jessica Irvine

At first it was just a bit of mould in the bathroom. But when repeated attempts to remove it failed, Lara Cook's real estate agent told her she would have to move out of her rented apartment in Coogee for four weeks while the bathroom was remodelled.

At considerable cost, she did. Upon her return she stepped in the shower – and the water pipe burst. The real estate agent told her the apartment was uninhabitable and she would have to vacate.

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"That was on the Friday and we were out on the Monday," said Ms Cook, 36, who found herself once again thrust back into the competitive Sydney rental market.

"I've had to move three times in two years, and each time it's not been my decision – the landlord's come home or there has been a burst water pipe. I really want to buy somewhere soon, for this reason, but obviously it's very expensive to buy in this area."

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Ms Cook is not alone.

The first ever national survey of renters' experiences has uncovered widespread anxiety, insecurity and discrimination in the rental market.

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Once seen as a step on the path to home ownership, more Australians are spending longer in the private rental market.

Between 1994-5 and 2013-14, the proportion of Australian households who rent increased from 25.7 per cent to 31 per cent. And renting is no longer the domain of the young – 63 per cent of renters are aged 35 or above.

But tenancy laws have failed to keep pace to protect renters, according to the new report Unsettled: Life in Australia's private rental market.

"Unfortunately, the research reveals a significant power imbalance between tenants and landlords, leading to a culture of fear that means many renters stay silent when something goes wrong," said Alan Kirkland, the chief executive of consumer group Choice.

One in five renters live in a home with mould, flooding or leaking. One in four suffer ongoing problems with pests, including cockroaches, moths and ants.

Eight per cent live in properties in need of urgent repairs.

But half of renters in Australia live in fear of being blacklisted on a bad tenants register, meaning they often do not ask for the vital repairs needed for fear of retaliation by their landlord.

Amid renewed debate about home purchase affordability, a coalition of tenant advocacy groups have joined forces to give voice to the interests of the increasing proportion of Aussies who may never own a home.

"It's hard to imagine a product or service this poor in any other sectors," Mr Kirkland said. "As consumers of rental properties, tenants have to deal with major quality issues like mould or flooding and are systematically denied access to a timely remedy."

Half of renters also said they had been discriminated against when applying for a property. The most prevalent reasons being for having a pet (23 per cent), receiving government benefits (17 per cent), age (14 per cent) and for having young children (10 per cent).

"It is deeply concerning that common features of everyday life, like having children, receiving a government payment or owning a pet, can be major barriers for renters trying to find a home," Mr Kirkland said.

Two-thirds of 1005 renters surveyed online in October last year said their properties were managed by a real estate agent, with the remaining third direct managed by the owner.

Private landlords were more likely to respond quickly to tenant requests for repairs than real estate agents. But real estate agents were more likely to resolve the problem to a satisfactory degree.

Worryingly, 11 per cent of renters who requested a repair copped a rent hike after their request and 10 per cent said their landlord or agent had become angry after the request.

"Tenants' concerns about raising issues or making complaints are not entirely misplaced," the report by Choice, National Shelter and the National Association of Tenants' Organisations states.

"Another major problem facing renters is the prospect of being 'blacklisted' by landlords and agents, making it difficult to lease properties in the future."

While just 3 per cent of renters surveyed said they had been listed, half of renters said they are concerned about it.

"The fear of blacklisting and other adverse consequences have prevented one in seven renters from making a complaint or asking for a repair," the report finds.

Of those who held off making a complaint, 42 per cent feared a rent increase and 23 per cent feared being evicted.

Among other renting gripes, 6 per cent of renters say their landlord has accessed their property unannounced and 5 per cent had a landlord take photos of their home during an inspection without permission.

A spokesman for National Association of Tenants' Organisations, Ned Cutcher, said generous tax breaks on investment housing meant many landlords were more concerned about capital gain potential than the needs of their tenants.

"We need a system in which rental housing is seen not just as a tax shelter, but shelter for human beings," Mr Cutcher said.

The survey found 83 per cent of renters had no fixed-term lease or were on a lease less than 12 months long.

But instead of longer leases, which can trap renters with bad landlords, tenants organisations are pushing for the removal of the "no grounds" provisions under which landlords can evict renters outside of the fixed lease period.

While most renters move on their own terms, for work or other personal reasons, 8 per cent said they had been evicted "without grounds" at least once since renting.

Of renters who had previously vacated another rental property, one in four had had a dispute over cleanliness and one fifth had a disagreement over the bond.

Despite increasing supply of rental properties, three in four renters agree or strongly agree that "competition amongst applicants for a rental property is fierce". As a result, two-thirds "feel like they can't ask for changes and need to simply take what is on offer" and more than half "worry that they'll need to offer more money if they want to secure a place to live".

When applying for properties, 60 per cent of renters consider the amount of information they are forced to divulge about themselves "excessive". Nearly half – 45 per cent – fear their private information will not be handled in accordance with law. One in seven – 14 per cent – are promised things during the application process that never materialised and 8 per cent were asked to pay a rent different to the amount advertised.

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