How good is renting in Australia?

Extract from ABC News

By the National Reporting Team's Mark Doman and Rebecca Armitage

Updated about an hour ago

Photo: Many renters are living a "culture of fear". (ABC News: Nic MacBean)

Related Story: Fear and loathing in the rental market

Let's just say the latest national snapshot of the state of renting a home in Australia does not paint a pretty picture.

That's putting it lightly. It's dire.
Choice and the National Association of Tenant Organisations looked at government stats and surveyed over 1,000 Australian renters. They found renters lacked housing security, many were living in substandard housing and maybe worst of all, renters were putting up with conditions because they were worried about getting kicked out of their home.
With renters now making up almost a third of residents in Australia, we thought we'd break down the figures to look a bit more closely at the situation.

Lease duration

One of the main problems highlighted in the survey was the vast majority of renters felt like they didn't have much security.
As Matt Levey from Choice put it, most renters probably don't know where they're going to be living in a years' time.
Of just over 1,000 respondents to the survey, 83 per cent of people were either on no fixed-term lease or signed up to a lease of less than 12 months.

Embed: Lease duration of surveyed Australian renters

Renters who say they currently have an urgent problem

Nationally, 8 per cent of ALL renters are currently living in a property in need of urgent repairs.

No security, fear of eviction

Renters in Australia are putting up with poor-quality housing for fear of being thrown out.

According to Consumer Affairs Victoria, urgent repairs included things like a burst water service, serious roof leaks, serious storm damage or a breakdown in water or heating.
So it's almost scary to think so many people surveyed are living with these problems.
When you break it down to a state and territory level, that number fluctuates a bit.

• In NSW, it's 10 per cent
• In SA, it's 12 per cent
• In Vic, NT and Tasmania — 6 per cent
• In ACT — 2 per cent

Top 10 problems for renters

If you're a renter, then there's a strong chance you've been hit by one of the following.
If you've only dealt with one, then you're lucky, very lucky. Chances are you've dealt with a lot of these problems, possibly all of them all at once.
Here's the list of the top 10 most common problems for renters and yes, insect infestations top the list.

1. Pests (cockroaches, moths, ants etc.): 27 per cent
2. Doors or windows that don't close properly: 24 per cent
3. Peeling paint or tiles coming off: 22 per cent
4. Leaks or flooding: 21 per cent
5. Mould that is difficult to remove or reappears: 20 per cent
6. No fly screens on windows: 19 per cent
7. It's difficult to keep property warm: 18 per cent
8. It's difficult to keep property cool: 18 per cent
9. Locks that don't work: 18 per cent
10. A key appliance that doesn't work: 17 per cent

So why aren't renters complaining or demanding for repairs?

Well, most of them are scared. So many feel like the odds are stacked so heavily against them in the rental market that they just let things slide.
Despite renters forking out hundreds of dollars each week, Matt Levey from Choice said renters are living in a "culture of fear".

• Concern rent would increase: 42 per cent
• Fear of eviction: 23 per cent
• Fear of bad reference/blacklisting: 14 per cent
• Fear of lease not being renewed: 14 per cent
• Fear of being bullied: 8 per cent
• Belief that request will be ignored: 8 per cent
• Fear they will have to pay for repair: 6 per cent

A national snapshot of renting in Australia

Obviously the rental landscape across Australia is different everywhere you go. Sydney prices, we can all agree, are insane. Melbourne, well, average rent there for a one-bedroom flat exceeds Newstart payments with rental assistance.
NSW
The average Sydney property costs $480 per week — the most expensive rent in Australia (and second in the world).
Victoria
More than 82,700 residential properties — or 4.8 per cent of Melbourne's housing stock — are vacant.
Queensland
Only 10 per cent of Queensland rental properties allow pets. QLD renters have second highest rate of disputes over return of bond (28 per cent).
ACT
41 per cent of ACT renters have felt discrimination.
Tasmania
Hobart is the second least affordable capital city to rent in Australia because of low incomes and comparatively high rents.
Northern Territory
63 per cent of apartments in Darwin are rented out by investors. Rents in Darwin dropped by 4.6 per cent in 2016.
South Australia
SA renters has highest rate of disputes with landlords over return of bond (30 per cent). SA renters are most likely to feel discrimination when trying to rent a property (61 per cent).
Western Australia
WA has the highest rate of short-term leases (19 per cent). WA has the highest rate of disputes over cleanliness when vacating (34 per cent).

Who feels discrimination when trying to find a rental property?

Let's not forget about how frustrating it can be to actually get into the rental market. Forms and open inspections during work hours are nowhere near as bad as some of the issues renting hopefuls have faced.
Some feel they're just facing blatant discrimination trying to get into a house. Here are the most common forms of discrimination for people trying to enter the market.

1. People receiving a government payment (42 per cent)
2. Having a pet (39 per cent)
3. Age (24 per cent)
4. Having young kids (23 per cent)
5. Being a single parent (18 per cent)
6. Needing to use a bond loan (18 per cent)
7. Gender (12 per cent)
8. Disability (11 per cent)

How does Australia compare internationally?

Pretty poorly to be honest.
In the Netherlands for example, tenants are offered an initial 12-month contract with option to extend for five or even 10 years. It is difficult for a landlord to terminate a lease without the tenant's permission and a court order. Imagine that!
Ireland — tenants are given an initial six-month contract, which is then rolled on to a secure six-year lease.
Switzerland — Only 34 per cent of Swiss own their own home. Landlords have to give three months notice to end a lease, and legally cannot evict a tenant without cause.
Germany — indefinite leases are available. Tenants are allowed to paint the walls of the property whatever colour they like, as long as they paint the walls white when they vacate.
But at least it's not Hong Kong, where the median weekly rent for an unfurnished studio is $595.
Or London, where the average rent is equal to 72 per cent of the average income.