Changes to rental laws could have 'damaging consequences': Real estate institute

But the proposed changes have been welcomed by the ACT Council of Social Services, which said no-cause evictions and unfair practices put private renters at risk of exploitation.

The ACT government opened community consultation on four proposed changes to the Residential Tenancies Act on Friday.

Along with changes to minimum standards and the no-cause eviction ban, the government will consult about restrictions to rent bidding and tenants' rights to grow food and compost.

ACTCOSS chief executive Dr Emma Campbell welcomed the consultation and said it was important tenants could rely on the legislation for protections.

"Given the ACT's acute housing crisis we are seeing rents skyrocket and historically low vacancy rates," Dr Campbell said.

"This is putting private renters at risk of exploitation through no-cause evictions and unfair practices when letting properties.

"Too often we hear of private rental properties in poor repair, but the insecure nature of tenancies and the vulnerability of tenants means that tenants are not able to hold landlords to account and ensure that properties are well maintained."

However, Real Estate Institute of the ACT chief executive Michelle Tynan has expressed concern about a ban on no-cause evictions.

A no-cause eviction allows a landlord to evict a tenant at the end of their lease without a reason but at least 26 weeks notice must be given.

The government agreed to outlaw the practice in the Labor-Greens power-sharing agreement.

"Many lessors choose to issue a no cause termination notice when they are genuinely selling a property or have a family member moving in, to allow their tenant 26 weeks to find new accommodation," Ms Tynan said.

"The removal of the clause this will see lessors only required to provide eight weeks notice to the tenant."

Under current laws, a landlord only has to give eight weeks notice to people on a periodic tenancy if they wish to sell the property or have a relative move in.

There have been a number of changes to rental laws in the ACT in recent years, this includes changes to make it easier to have a pet and to make minor modifications to their home.

"For many investment owners in the ACT, these measures and the other proposed changes, could be the straw that breaks the camels back," Ms Tynan said.

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"The proposed changes could be seen as a further erosion of their rights as property owners and therefore they will simply sell and given the current market conditions in the ACT, for many, this will be a very attractive alternative."

But ACT Attorney-General Shane Rattenbury did not agree, saying he believed landlords would continue to enter or stay in the market.

"We have a situation in the ACT now where there is a real pressure to get rental properties that we need to make sure that those people who are renting when they do get a property that they've got security, they've got good tenure and they're able to assert their rights in a tight rental market," Mr Rattenbury said.

Better Renting executive director Joel Dignam said the changes would make it easier for renters.

"With house prices so unaffordable, more people are renting long-term and renting with children," Mr Dignam said.

"These are our friends, our neighbours, our colleagues. It's important that rental laws ensure all of us can have the stable, affordable, healthy homes we need."

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