Pet-friendly rentals: what the update means for you

In a recent announcement, the coalition Government unveiled proposed changes to tenancy laws to facilitate greater pet ownership in rental properties. The announcement, which outlines plans to introduce pet bonds and streamline the process for tenants to keep pets in rentals, marks a significant step towards modernising the residential tenancy landscape.

One of the key aims of the proposed legislation is to simplify how tenants obtain permission to keep pets. This addresses the prior ambiguity around 'no pets' clauses in tenancy agreements. Under the new regulations, tenants will need to seek approval from their landlords to keep pets, who can only decline on reasonable grounds. Reasonable grounds for refusal might include concerns like insufficient space, inadequate fencing, or the presence of property features that could be easily damaged by pets.

The proposed legislation also aims to make tenants liable for all careless and accidental pet-related damage (beyond fair wear and tear). Currently, tenants are only liable for careless damage up to four weeks' rent or the landlord's applicable insurance excess, whichever is less.

The announcement has been met with favourable reactions from industry commentators, many of whom are describing it as a ‘win-win’.

For tenants, these updates could potentially open up more options for those with pets, significantly enhancing their ability to find suitable housing. Landlords stand to benefit as well - tenants with pets often exhibit a stronger commitment to maintaining their rental property, which can lead to longer, more stable tenancies and improved upkeep of the property, fostering a mutually beneficial relationship between tenant and landlord.