Pets in rental properties: Residential Tenancies Reform

“Tenants can have pets” one TV station trumpeted when the proposed Residential Tenancies Act reforms were announced.

While tenants would have been delighted, I know the lack of context in the TV report would have left many investors in shock.

To adapt an old quote: a little information is a dangerous thing. The TV station ran with an attention-getting sound bite and failed to mention other important details. So let’s look at what was actually announced and what happens next.

What was said

The Government stated tenants will be able to have pets in most cases.

It also said property owners will only be able to refuse consent on certain grounds and with the approval of the Commissioner for Consumer Protection. However, they will be able to place conditions on the keeping of a pet. 

Many investors are willing to rent to tenants with pets but they do tell us they are concerned about property damage and having the right pet for the property.

This is some of feedback we have received from property owners regarding pets in rental properties:

“A property needs to be suitable for pets and the property owner should be allowed to determine if their property is suitable.” 

“I allow pets, but I’d like to know what the pet is. Not all pets are suitable to all properties.”

“I currently rent to pet owners but only at houses with tiles and no carpet, paved yard and minimal garden.”

“There is a big difference between a toy poodle and a wolf hound living in a rental.”

What happens next?

These changes will not be introduced immediately. The Government has indicated they will be introduced to Parliament at the end of this year and are likely to come into effect in the second half of 2024.

In the meantime, REIWA will be working with the Government on the finer details of these reforms. In particular, the ‘certain grounds’ property owners can use to refuse pets have not yet been determined.

REIWA expects they will include things like the suitability of the pet for the property, local council laws regarding the keeping of pets, and accommodating existing strata by-laws that currently disallow pets.

REIWA will be working with the Government to determine a list of appropriate reasons to refuse a pet as well as the conditions property owners can place on having pets and what happens if these conditions are not met.

REIWA will also be looking at the pet bond. At the moment it only covers fumigation and is capped at $260 regardless of the number of pets at the property. Discussions will include either increasing the pet bond or overall bond to cover potential damage by pets.