NT government moves to outlaw rental bidding, protect DV-impacted tenants

Rental bidding will become illegal as part of a suite of changes to improve renters’ rights, set to bring the NT in line with the rest of Australia. Read what else is on the chopping block.

Rental bidding will be outlawed and tenants – especially victims of domestic violence – will have a better chance of living in safety and security as part of a major overhaul of tenancy laws.

The NT government has introduced new legislation that would criminalise rental bidding – the practice of offering or accepting more than the advertised rent – as well as introduce limits for the first time on break lease fees.

Damages caused by domestic violence could also be charged to the perpetrator, rather than the victim, while tenants will have a greater freedoms to end their interest in a tenancy without penalty when fleeing DV.

Rental bidding is expected to be outlawed when the legislation passes in November. Picture: Phil Williams

The Bill also includes measures to protect a tenant’s privacy by limiting what personal information may be shared online, including photos of the property that may identify them.

Darwin Community Legal Service tenancy team leader and lawyer Matthew Gardiner said the changes were a great start to bring Territorians’ rights in line with the rest of country.

“For most people, a rental isn’t just a house, it’s their home,” he said.

“Being able to do minor modifications for security (is another major change) … previously it was that you couldn’t get anything done unless the landlord did it.

“This allows people to actually put sufficient security in and then at a later stage claim back that money”.

Darwin Community Legal Service tenancy team leader Matthew Gardiner.

While the changes were welcomed, Mr Gardiner said the Territory was the last jurisdiction to introduce laws against rental bidding while advocates were still waiting for major reforms to bonds.

“We’re the only jurisdiction in Australia that doesn’t have a residential tenancy bond board,” he said.

“Between 2500 and 3000 people a year are coming to us for advice, and I’d say half of those are for bond issues.

“(Here) the tenant pays either the landlord or the real estate agent the bond and they physically hold it.

The proposed laws are expected to return to parliament in November and are expected to be passed by the Labor majority.

“Everywhere else in Australia, there’s a statutory body that actually holds the bond and the bond is automatically returned to the tenant if there’s no claim against that bond.”

In introducing the proposed laws on Wednesday, Attorney-General Chansey Paech said the changes would support victims of domestic violence as well as help promote the Territory’s liveability.

“Rent bidding is known to create a self-fulfilling feedback loop that leads to excessive rental costs, which result in rental stress … which can give rise or worsen the incidences of domestic and family violence,” he said.

Mr Paech said his department was also working on another set of tenancy reforms but did not provide detail on what that would contain.

The legislation will return to parliament in November.

Darwin Community Legal Service provides free confidential advice on tenancy and other legal matters.