Dispute resolution service to be available for ACT landlords and tenants

The ACT government has announced that it will invest in a mediation service in a bid to resolve disputes between landlords and tenants who are struggling to meet their rent repayments due to COVID-19.

According to Attorney-General Gordon Ramsay, the pandemic has created challenging conversations between the two parties, as the ACT government encouraged landlords and tenants to share the economic burden.

The aim of the mediation service is to provide “restorative, impartial support to both landlords and tenants to deal with the difficult issues COVID-19 has caused for our community”.

A Canberra-based organisation, Conflict Resolution Service, has been earmarked as the preferred provider for the service. 

The not-for-profit organisation has more than 30 years of dispute resolution experience, acting as the mediator between family and community disputes, as well as providing workplace consultation and crisis mediation to prevent youth homelessness.

“The Conflict Resolution Service is a long-standing, trusted provider of mediation services in our community and has a panel of qualified mediators that they can draw upon,” Mr Ramsay said.

“Conversations about money or about a person’s home or their long-term investments are not always easy. 

“That is why we have moved quickly to secure funding for a mediation service for tenants and landlords to help support these difficult discussions and facilitate good outcomes.”

In its submission to the state government’s Select Committee on the COVID-19 pandemic response, Tenants Union ACT said there is an “inherent imbalance” between landlords and tenants.

“A rental property is a financial investment. The aim for lessors is to make money,” the submission said.

“Where money is not being made (i.e. when a tenant or occupant is unable to pay any, or some, of the rent), the investment is no longer viable. Negotiations, where parties are diametrically opposed, are difficult for the most experienced mediators.”

According to the union, mediation will be “extremely difficult” on a tenant if they have nothing to offer in a negotiation.

“In addition, many renters do not assert their rights generally, most often out of fear of reprisal (usually being told to leave the property) and the risk of an unfavourable reference or recommendation.”

Little Bird Properties director and property manager Heidi Russell applauded the government’s actions and said the service would be a welcome relief and beneficial, particularly, for private landlords.

“As a property manager, we also act as a mediator between landlords and tenants … and so far, I haven’t had any issues where owners and tenants aren’t negotiating and working together,” Ms Russell said.

“But [this service] will help get a resolution between parties who are struggling meeting in the middle … and would be really good for private landlords who don’t have an intermediate person.”

The state government has previously announced a moratorium on rent increases and evictions for individuals who are affected by COVID-19. 

Chief Minister Andrew Barr also announced the state government would hand land tax and residential rate rebates to landlords who reduced rents for their tenants by at least 25 per cent for six months.

The ACT government will work with Conflict Resolution Service and will make a further announcement once the service is available to the public.

This article has been updated since it was first published.