Friday 26 October 2012

Soon, Be Patient

Narelle’s story starts with an interstate move with her two grown-up sons from New South Wales to Victoria. They signed a 12-month lease for a 3-bedroom flat through Oliver Hume in South Bank. But Narelle and the boys had to leave the flat early when the plumbing system ‘crapped itself’. They broke the lease early and did not have to pay rent for a month. The landlord is not the culprit here.

Narelle and the boys moved into their new house straightaway. The property manager informed them the inspection went well, the flat was in great condition, and the bond money would be returned. Fast forward about three months. To this day, the bond money has still not been returned. Narelle has phoned and emailed Oliver Hume constantly. She has been given various excuses. Apparently the general manager is away on holidays. Oh poo. I don’t see how this impacts on Narelle’s situation.


The property manager actually replies to an email and says the paperwork has been processed. So Narelle phones the Residential Tenancies Bond Authority (RTBA). Understandably, she wants to check the status of the application. But for privacy reasons, the RTBA won’t provide her with any information because she doesn’t know the bond number. I really don’t understand why the RTBA can’t verify Narelle’s identity with a few key questions like other government authorities. This is a pet hate of mine. I can't stand bureaucrats who think they understand privacy law. Narelle emails the property manager and requests the bond number. The property manager doesn’t reply because Narelle can then access information about the bond. This might be a case of one person falling through the cracks. But if somebody investigated, I wonder if other issues would surface...

Narelle is in a very fortunate position. Her mother loaned her money to pay for the bond for the new house. Consumer Affairs Victoria say a bond should be returned within two to three business days.
I am very curious as to whether this estimate could be backed up by official figures. If everything went according to plan Narelle could have applied the original bond money to the new house. But this did not happen.

If another family was in the same situation, but were unable to come up with the bond, what are they to do? There does not seem to be any statutory time limits when it comes to returning bond money. There is no incentive for owners or real estate agencies to return bond money in a timely fashion. They are not penalised for failing to submit paperwork to the RTBA expeditiously. 


And what happens if a tenant just gives up on reclaiming bond money and later cannot be located because they have moved house a few times? It would be fair if landlords and real estate agencies were given five working days from the date the premises were inspected. That’s more than enough time. Performance has taken place and the contract has come to an end. Moreover, a tenant does not have access to accrued interest even after the premises have been vacated. I don’t understand why a tenant can’t submit a form to the RTBA to request that bond moneys be applied to a new property. Is this too easy? Maybe so. In Canberra, the Office of Rental Bonds can transfer bond moneys to a new address provided the landlord or real estate agent agree to this method of payment.

If Narelle can’t pressure Hume Oliver to liaise with the RTBA, what is the next step? I believe Narelle would have to submit an application to the Victorian Civil and Administrative Tribunal. But why should Narelle have to instigate tribunal proceedings over an undisputed bond amount? This is a minor administrative matter. Some things should be enforced by an administrative government body. 

As we all know, Australia is a federal constitutional country. The various state and territory governments enact laws with respect to tenancy. In the result, tenancy laws are highly fractured and differ greatly from state to state. Tenants are divided as a result. Not being a cohesive whole, it is much more difficult to mobilise. The Council for Australian Governments (COAG) might be an appropriate vehicle for change. Stage and territory governments can cooperate to achieve consistency. For example, the introduction of near-uniform defamation laws some years ago. 

But I have gotten ahead of myself. I have forgotten that no one really cares about tenancy matters. It’s not pink like breast cancer. It’s not rainbow like gay rights. Political will is merely one barrier on the road to change. 


And this is where my diatribe fizzles out until next time. And Oliver Hume...pull your finger out! Honestly, it’s not hard. 

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