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Residential Tenancy in Tasmania: The Tenants’ Union Vision Meredith Upchurch Solicitor Tenants’ Union of Tasmania November 2010
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Hobart Vacancy Rates Source: REIT
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Australian Dwelling ‘Gap’ YearAnnual Growth in ‘Gap’Cumulative ‘Gap’ 2009178,400 201024,000202,400 201125,900228,300 201226,500254,800 201326,800281,600 201426,300308,000 201924,900436,300 202422,100549,100 202913,400640,600 Source: National Housing Supply Council
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Minimum Standards Australian Comparison JurisdictionLandlord/Owner must ensure the premises are… Queensland…in good repair Victoria…are maintained in good repair. Australian Capital Territory…in a reasonable state of repair. New South Wales…in a reasonable state of repair… South Australia…in a reasonable state of repair…. Western Australia…in a reasonable state of repair… Northern Territory…in a reasonable state of repair… Tasmania…as nearly as possible in the condition, apart from wear and tear, that existed on the day on which the residential tenancy agreement was entered into. Source: Relevant State or Territory Legislation
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Alberta, Canada Housing premises are structurally sound, in a safe condition, in good repair, and maintained in waterproof, windproof and weatherproof condition. Equipment and Furnishings – Occupants of housing premises must be supplied with adequate; sanitary facilities, heat, potable water, utilities and space for sleeping. The owner shall ensure that all rooms and other areas are maintained in a clean and sanitary condition. Source: Minimum Housing and Health Standards (Alberta, Canada)
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Median Rent - Tasmania HobartLauncestonNorth West Coast 1 br Unit 2 br Unit 3br Hous e 1 br Unit 2 br Unit 3br House 1 br Unit 2 br Unit 3br House May 2000 901251508011014070110130 Feb 2010 170270330150200270150200230 % Increase 891161208882931148277 2000-2010 Median Increase: 96% CPI (Hobart): 34% CPI (Australia): 36%
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Impact of Legislative Change ‘[n]o evidence has been provided which indicates changes to rental prices, property availability, or the ability of persons to enter the market as a result of the Act’ (CAFT, 2000, p.54) In landlord investment decisions, residential tenancy law was the most important factor for less than two per cent of landlords, and only about seven per cent considered residential tenancies law at all. (Seelig, 2007)
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Costs to Landlord from Minimum Standards 1.Expenses likely to be tax deductable 2.Improvements are likely to increase value of property
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Costs to Tenant From Minimum Standards Two Schools of Thought: Rents set by vacancy rates Little effect on rents from minimum standards Rents affected partially by costs Some offset of higher rents with lower bills (eg electricity)
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