The state arm of the Property Council of Australia has cautioned against any changes to the state's residential tenancy laws which may discourage investment.
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A House of Assembly committee on Thursday handed down its final report following an inquiry into affordable housing in Tasmania.
Amongst the recommendations was a review of the Residential Tenancy Act, including a suggestion to investigate caps on rent.
Shelter Tas executive officer Pattie Chugg said the organisation was aware of rent caps being used in other jurisdictions that faced rental shortages and rising costs.
"So there is an opportunity to learn from experience elsewhere," she said.
Tasmania's residential tenancy laws are no longer providing adequate protections or rights to tenants.
- Tenant's Union of Tasmania spokesman Benedict Bartl
Tenant's Union of Tasmania spokesman Benedict Bartl said the union supported a broader review of the Residential Tenancy Act, particularly around rent control measures, security of tenure, and leases in general.
"We welcome the Select Committee's finding that Tasmania's residential tenancy laws are no longer providing adequate protections or rights to tenants," he said.
Mr Bartl said the union also supported the committee's recommendation to ensure appropriate accommodation was available for people leaving correctional facilities.
"If the government is serious about reducing crime, there must be appropriate accommodation options for all individuals existing correctional facilities," he said.
Greens leader Cassy O'Connor, who was a member of the committee, said she had heard evidence of households being slugged with rent increases of up to $70 a week in the space of a year.
"Rent controls, similar to the regime in the ACT, to better protect tenants are essential," she said.
Property Council of Australia state executive director Brian Wightman said the fundamental challenge the state faced in the affordable housing space was to increase supply to meet demand.
"I would urge caution with any changes to the Residential Tenancy Act that could inadvertently discourage property owners from participating in the long-term rental market," he said.