Scotland & Qld: a potted history of centrailsed bond collection

IScottish flagt’s only two years since bonds taken from tenants in Scotland have had to be deposited in a prescribed place.  Before that they were kept in the pocket (or bank accounts) of landlords and we’re guessing that at least some tenants had difficulties getting their bonds back at the end of their tenancy, no matter what condition they left the property in.  Here’s a link to information on the Scottish tenancy deposit scheme here.

We guess that’s what used to happen in Scotland because that’s what it was like in Queensland.  In 1986 the Tenants’ Union of Queensland was formed by a group of tenants and concerned organisations who were tired of bonds being unfairly withheld at the end of tenancies.  Then in 1988, under the Ahern National government, the original tenancy advice program was funded in response to housing issues arising from development around the World Expo 1988 site.

The Tenants’ Union and other tenant advocates pushed for centralised bond lodgement and were key to the formation of the Rental Bond Authority (RBA) in 1989.  The formation of the Authority was strenuously opposed by the real estate and property owner organisations.

The Residential Tenancies Authority (RTA), with expanded roles, was subsequently established in 1994 following the introduction of the Residential Tenancies Act.  Again this development and the overhaul of the woefully inadequate previous tenancy legislation occurred with the support of the Tenants’ Union and tenant advocates.  The RTA is fully funded by tenants’ bonds, requiring around 70% of the interest earned annually.  Lessors and agents receive RTA services at no cost to them.  Less than 20% of tenant bond interest can fund the network of tenant advice services and the Tenants’ Union.

This history adds to the sense of unfairness with the state government’s decision to withdraw funding from tenant advice services.  The Government would not have access to this money if it wasn’t for the work of the Tenants’ Union and other tenant advocates.

Tenants need, and tenants deserve, tenant advice services.  Without them, tenants don’t get a fair deal and won’t get a fair deal in the rental market.

What’s more, if the Tenants’ Union is de-funded then it will severely limit its ability to represent tenants’ interests when the tenancy legislation is being reviewed.

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