New state tenants will soon no longer have to face more than enough to make ends meet when they move.
The new state, government, will present a reform package to Congress this week that will allow tenants to transfer their deposits from one rental property to another.
It can take several weeks for tenants to receive a deposit, which will cost them thousands of dollars in two leases.
Better Regulation superintendent minister Matt Keane (Matt Kean) said the proposal would ease financial pressure on tenants.
"the pressure on moving is already high enough and there are often unexpected costs that you don`t realize until you bury your head in the box," Keane said.
"when you receive the last deposit, you often have to pay a new deposit, which puts a lot of financial pressure on families, especially when they may have to pay thousands of dollars."
"this reform will help reduce the cost of living pressure on moving and allow families to avoid payday loan schemes, which tend to plunge consumers into a vicious debt cycle that is hard to escape."
Sarah (Sarah Agar), director of activities and policy at Choice, a consumer rights advocacy group, welcomed the move.
"tenants have long faced huge rental pressures and we have been calling for improvements in the rights of tenants." "No one should pay a double deposit for weeks at a time," Aeger said. "the legislation will really ease the financial pressure on tenants.
The details of how to deduct the deposit have not yet been decided. If the landlord wants to withdraw money from the deposit, government is considering Choice`s provisional voucher proposal.
Provided by the Lease Deposit Committee (Rental Bond Board), the voucher will allow the entire deposit to be transferred from one property to another, and the tenant will have to pay the landlord separately the amount of the loss within a short period of time, and if no payment is made, it will be deemed to be a default. Similar to unpaid deposits.
Since January, brokers and landlords have been asked to have tenants pay deposits online as their first choice, but this is not mandatory. The new rules will apply to all deposits, no matter how they are filed.
"We really think this is a solution to the problem and the negotiation process is very rigorous and I think government has taken an innovative approach that will protect tenants and deposit holders," Aeger said. "We don`t think landlords will lose money, and most of the tenants in the new state have received full deposit refunds, and the use of temporary vouchers will take any risk," he said.
Tony Devlin (Tony Devlin), head of Moneycare, the Salvation Army financial advisory service, also welcomed the change, saying it would ease cash flow and housing pressures on tenants.
