Renters have little security, put up with a lot and fear eviction: survey
Updated
The nation's first national survey of housing tenants has revealed renters in Australia have little security and lack the power to demand standard property maintenance.
Key points:
- 83 per cent of people surveyed were living with little to no long-term security
- A quarter who had asked for repairs had received no reply from an agent
- Many are also too scared to complain out of fear of being "blacklisted"
Tenants are putting up with poor-quality housing and many face the threat of eviction if they complain to their landlord, according to researchers.
The survey, entitled Unsettled: Life in Australia's Private Rental Market, was conducted jointly by consumer group Choice, the NGO National Shelter and the National Association of Tenant Organisations.
Its release today comes amid an ongoing political debate on housing affordability.
Though prices have dipped in Brisbane's apartment market, and Perth's prices have cooled, house prices remain beyond the reach of many in Melbourne and Sydney's booming real estate market, which shows little sign of cooling.
Rates of homelessness nationwide are also on the rise.
Choice spokesman Matt Levey said the survey revealed "massive issues" around security and quality for renters.
Of just over 1,000 respondents to the survey, 83 per cent of people were either on no fixed-term lease or signed up to a lease of less than 12 months.
"That means 83 per cent of people renting potentially not knowing where they're going to live in 12 months time," Mr Levey said.
A quarter of those who requested repairs reported that they received no response at all from an agent or landlord.
"Attached to security is a culture of fear," Mr Levey said. "Around half of renters say they're worried that they'll get put on a bad tenancy database, in fact blacklisted, and what that means in practice is 14 per cent of renters say they're too scared to make a complaint."
The proportion of people in the rental market in Australia has risen to represent almost one-third of residents as increasing numbers of people are locked out of home ownership, particularly young people.
But renters had been largely ignored in the national conversation about housing affordability, according to advocates.
Renting: the 'hidden story' in Australian housing
Security of tenure for tenants was low, contrasting with countries such as Germany, Finland and Denmark, which offered indefinite leases or leases of 15 or 20 years, and where it was difficult for landlords to terminate leases without the tenant's permission.
Top 10 problems for renters
- Pests (cockroaches, moths, ants, etc)
- Doors or windows that don't close properly
- Peeling paint or tiles coming off
- Leaks or flooding
- Mould that is difficult to remove or reappears
- No flyscreens on windows
- It's difficult to keep property warm
- It's difficult to keep property cool
- Locks that don't work
- A key appliance that doesn't work
"We think the experience of renters in Australia is really the hidden story around housing," Mr Levey said.
"We've got 31 per cent of Australians renting and really no focus on their rights or the issues around the quality of what they're paying for."
The insecurity of the rental market was also driving up rates of homelessness, according to National Shelter.
The organisation's executive officer, Adrian Pisarski, said the survey confirmed what those on low incomes attempting to secure housing already knew.
"I think what it shows is that the rental market is a really insecure, unaffordable place for very, very many Australians. The consequence of that insecurity and unaffordability is an increase in homelessness."
Push for better regulation of rental prices
Advice and advocacy service Tenants NSW is calling for an end to landlords' ability to end tenancies with no cause — which is possible under periodic leases in all Australian states except Tasmania — and greater regulation of rental prices.
Tenants NSW policy officer Ned Cutcher said the results of the survey demonstrated that generous federal tax concessions for investors drove those investors into the market with the intention of reaping capital gains, and investors were less attracted to properties than tended to be affordable.
"The sense that I get in this survey confirms this is that investors aren't really interested in delivering housing for people," Mr Cutcher said.
"Sydney's probably at the very, very pointy end of these kinds of issues. It's one of hottest real estate markets in the country."
Half of respondents to the survey also reported having experienced some form of discrimination when looking for a rental property, most commonly because they received welfare payments.
Having a pet, being young, having young children, being a single parent, disability and race were also reasons people nominated as causes of discrimination.
'I didn't want to live in a dump'
University lecturer Devaki Monani found it difficult to secure a rental property in Sydney's inner west and believes she faced racial discrimination.
"I didn't want to live in a dump in a place which had grotty carpets and wasn't painted," Dr Monani said.
"But if you rocked up to inspect nice apartments we would not get them.
"The landlords think if Indians come they will cook curry and they'll ruin the apartments, there'll be greasy stains or whatever.
"I actually had someone tell me once you should go to Parramatta because that's where all the Indians are."
Dr Monani is mother to a toddler, and would like to buy property with her husband, but Sydney's booming market has presented a challenge.
While the family are forced to rent they would dearly like more security. But when the family requested to sign a fresh 12-month fixed lease after having rented their Marrickville property for more than two years, the landlord increased the rent.
"There wasn't any negotiation at all, there wasn't any conversation," Dr Monani said.
Periodic leases, which roll on at the end of a fixed-term lease, can be ended without grounds with just a few weeks notice in all Australian states, whereas fixed-term leases offer greater security of tenure.
Topics: housing, government-and-politics, housing-industry, industry, business-economics-and-finance, australia
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