Private landlords hold key to rental shortage

May 2002

Gaining more weight for the rights of South Australia's landlords was high on the list of items discussed with Attorney General Michael Atkinson at the meeting between the Attorney General and Real Estate Institute of South Australia (REISA) President Barrie Magain, CEO Joyce Woody and Legal Counsel Elpi Emmanuel held on April 10.

REISA is seeking a review of the Residential Tenancies Act following a surge in the number of tenants breaking lease agreements since the advent of the First Home Buyer's Grants, and alarm over the implications of new privacy laws in the property management arena.

As the Act currently stands it is far easier for a tenant to escape a fixed lease agreement than it is for the landlord.

REISA believes this inconsistency in the current legislation acts as a disincentive to property investors who fear the performance of their investment property might be jeopardised in adverse situations.

REISA President Barrie Magain, who was invited to speak on Talk-Back radio 5AA in March to discuss some of the problems experienced by South Australian landlords, said the inconsistencies in the Act had many flow-on effects into the wider community.

"In many areas of regional South Australia, and in Adelaide, there are growing problems finding adequate housing for employees, families and people on lower incomes," Mr Magain said.

"The number of properties available to low-income families via the Housing Trust is falling and if we don't encourage private landlords to invest in residential property, the situation with accommodation in South Australia is only going to get worse.

"We have a real opportunity to make substantial changes to the Residential Tenancies Act that recognise the important role landlords play in the housing and property sector," Mr Magain said.

An additional concern the REISA has discussed with the Attorney General is that the current legislation in the Residential Tenancies Act may be incompatible with the new National Privacy Principles brought in on December 21, 2001.

The current legislation requires the landlord's address to be available to the tenant. REISA believes this is a potentially dangerous situation because it enables a tenant to bypass the property manager and make direct contact with the property owner.

"The property manager is being paid to handle all matters between tenant and landlord," Mr Magain said.

"In volatile situations where a disgruntled tenant may seek to make direct contact with the landlord, there are obvious safety risks apparent.

"The Real Estate Institute of South Australia will work with the Attorney General and the Office of Consumer and Business Affairs on this issue. This will help develop improved systems for our property managers and deliver incentives to investors and improved consumer protection," he said.