"Three months into Phase 2 of the new rental laws, which introduced allowances for pets, minor modifications and a new determinations process, Consumer Protection shares insights."
It’s been three months since Phase 2 of the Residential Tenancies Amendment Act 2024 came into effect, which saw pets and minor modifications allowed in most cases and the launch of the Commissioner for Consumer Protection determinations process.
Consumer Protection have shared some information on the applications the Commissioner has received since then.
This may help guide investment property owners regarding tenants’ requests to have a pet or make a minor modification.
The majority of applications to the Commissioner relate to pets, and most are from property owners wanting to refuse a request to keep a pet.
The remainder of submissions is mainly from owners wanting to impose conditions on the keeping of a pet.
The most common reason given when seeking to refuse a request for a pet is the pet will cause damage or undue hardship to the property owner.
The intent of the legislation is that tenants are entitled to have a pet and Consumer Protection advise broad, general claims, such as the pet will damage the property, are not sufficient for the Commissioner to refuse a request. If the owner is concerned about damage or undue hardship, they will need to demonstrate, with evidence, that this will occur.
For example, it isn’t enough to say it will cost several thousand dollars to replace all the flooring without providing evidence the pet is going to cause damage sufficient to warrant replacement of the entire floor, and without providing evidence of the current condition or age of the floor.
Consumer Protection have also received some unnecessary applications. For example, if there's a ‘no pets’ by-law in place, the Act allows the owner to automatically refuse a request to keep a pet. They do not need to make a submission to the Commissioner determinations process.
While there haven’t been many submissions regarding minor modifications, most of those received have been for modifications that aren’t covered by the minor modifications process.
The regulations include a list of minor modifications. If a tenant makes a request for modification that is not on this list, it's a different category of modifications, potentially a major modification, and follows a different process. A submission does not need to be made to the Commissioner when this occurs.
Property owners must notify the tenant of their intention to apply to the Commissioner and make the application within 14 days of receiving the request from the tenant. If they don't do both within that timeframe, the tenant’s request is considered to be approved.
Every submission is considered on its own merits.
Up front discussions between tenants and owners, through property managers, are often the best way to facilitate a suitable outcome for all parties.