Reforming Marginal Rental: update, July 2011

In March the Tenants’ Union of NSW launched the Reforming Marginal Renting campaign, for a better deal for people who rent their housing but are not covered by the State renting laws. 

Marginal renters include residents of boarding houses, Licensed Residential Centres for people with disability, crisis accommodation, share housing and residential colleges. Many of the most disadvantaged and vulnerable persons in our community are marginal renters.

We have put forward a four-point plan for reforming marginal renting, and have called on political parties and stakeholders in the marginal rental sector for their support.

This update presents the latest developments in the campaign and in marginal renting.

Boarding houses are ‘key issue’: O’Farrell Government

The O’Farrell Government is determined to move ahead with reforms to boarding houses, said Fair Trading Minister, Anthony Roberts, to the NSW State Parliament on 15 June.

In response to a question from independent MP Clover Moore, Minister Roberts said that boarding houses were a ‘key issue’ for the Government, observing ‘it is essential that we protect the residents and ensure the ongoing viability of this sector of the housing market.’

‘Boarding house residents should be able to expect accommodation that is safe, clean and secure’, said Minister Roberts. On the key question of ‘how to better protect the rights of residents’, Minister Roberts said ‘a principles-based approach may be the most appropriate solution to providing greater security and protection to residents while at the same time ensuring that the viability of boarding house operators is not further diminished.’

Minister Roberts did not commit to any particular actions, but said that the Government would consider carefully the proposals of its interdepartmental committee on boarding house reform.

Support grows for reforming marginal renting

The Wesley Mission has added its support to the Reforming Marginal Renting campaign, joining 24 other stakeholder organisations.

Significantly, the Wesley Mission is provider of marginal rental accommodation, housing about 600 people every night.

New boarding house support project for Sydney and inner west

Newtown Neighbourhood Centre has launched a new Boarding House Outreach Project, providing support to boarding house residents and operators in the City of Sydney, Ashfield, Burwood, Marrickville and Leichhardt local government areas.

Four full-time workers provide case management, information, advice, referrals, education and employment opportunities, and leisure and recreational activities to boarding house residents throughout the City and the inner west. They also work with boarding house operators to find support services for residents, and access funds for fire safety work.

The project is funded by the Federal and NSW State Governments as part of the NSW Homelessness Action Plan, and builds on Newtown Neighbourhood Centre’s long-standing and respected work in boarding houses.

The TU welcomes the new project, and proposes that similar support work should be funded in other locations throughout New South Wales.

Investor interest in new boarding house accommodation

The expansion of the Boarding House Financial Assistance Program (BHFAP) has attracted considerable interest from investors, according to figures provided by the Centre for Affordable Housing to the TU.

Following the October 2010 expansion of the BHFAP to make grants to operators who build new boarding houses or new rooms, the Centre received six applications to build a total of 134 new boarding house rooms. The total value of the grants applied for was $1.34 million.

The applications indicate that new and existing investors are interested in developing boarding house accommodation, and that a viable business case for boarding houses can be made with the right incentives. The TU proposes that the BHFAP should be expanded again, to allow applications for a wider range of purposes, and evaluation of what measures best improve boarding house viability.

Marginal renter in Tribunal test case

In the absence of legislation for basic occupancy principles in marginal renting, sometimes marginal renters have to get creative with the law.

In a recent case, a boarding house resident, represented by advocates from Marrickville Legal Centre, used new national consumer protection laws to sue his landlord in the Consumer, Trader and Tenancy Tribunal.

The resident argued that the poor condition of the boarding house meant that it was not reasonably fit for its purpose, in breach of clause 61 of the Australian Consumer Law. The Tribunal agreed and order the landlord to pay $600 in compensation.

The findings present a grim picture of the boarding house. The bath, which was shared by five residents, was ‘a health hazard and likely dangerous.’ The toilet was ‘below any reasonable standard’, the stove was ‘clearly a hazard’ and obstructed a fire exit, and the gas water heater was ‘ancient’ and ‘inherently hazardous.’

Congratulations to Marrickville Legal Centre. The case is a good win for the resident, and opens up the potential for legal remedies for other marginal renters if they can show that they are covered by the Australian Consumer Law. It also demonstrates the need for law reform for occupancy agreements that make landlords and occupants clear about their rights and obligations.