TENANCY TIPS:
Tenancy in the ACT
** last updated: 08/07/09 **
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this tipsheet
Entering a tenancy in the ACT can involve substantial
responsibilities.
Make sure you protect your interests by being aware of your rights
as well as responsibilities.
Become an equal partner in the landlord/tenant relationship.
What does the law say?
The
Residential Tenancies Act 1997
(RTA) regulates
residential renting arrangements including private, public and community
tenancies in the ACT.
This
legislation provides a framework of basic protections for tenants
that
can't
be taken away.
The RTA sets out ‘standard tenancy terms’ (STTs) that apply to all
tenancy arrangements, and are generally provided as the lease or tenancy
agreement. All tenancy agreements are deemed to contain the STTs, so
they will always apply, whether they are provided in the agreement or
not.
It is in your interest to
understand these protections and rights so that you can enjoy your home,
and get proper value for the rent you pay.
Tenancy
disputes can be resolved in the ACT Civil and Administrative Tribunal
(ACAT). Any party to a tenancy agreement – tenant or landlord – can
apply to have their matter heard by ACAT.
Who is a tenant?
A tenant is a person who
has a right of occupation under a residential tenancy agreement (s
6,
RTA). Essentially,
a tenant is someone who exchanges rent payments for accommodation.
Some rental arrangements
including caravan parks, student accommodation and boarding and lodging
situations are
treated differently
and are exempted
from
the rules that apply for tenants.
If you are in one of these rental situations you may still be
covered
by the RTA as an
occupant.
For details about these protections see our
Occupancy Tips
or contact the
Tenants Advice Service (TAS).
NOTE: This leaflet
concerns tenancy arrangements only.
What is a tenancy agreement?
A
tenancy agreement is a legally binding document.
It is an agreement for a
tenancy between the landlord (or their agent) and the tenant.
A tenancy agreement can be
completely in writing, completely oral, or a combination of both. If
you don’t have something in writing you are still protected by the
STTs.
However, it is advisable to have a written agreement for your own
protection in case of dispute.
You can download a free
copy of the standard tenancy agreement via the Tenants’ Union website
(click
here) or one can be forwarded free of charge from the Tenants’ Union
office. They are
usually
provided by the
landlord or agent. It is a good idea to know what is in the standard
agreement.
What is in a tenancy agreement?
Read
your tenancy agreement carefully,
noting the length of the
tenancy, the amount of rent to be paid and the time and method of
payment, and any special conditions.
Section
9
of the RTA provides that
a term of a
tenancy agreement is void if it is inconsistent with the RTA.
If a term
is inconsistent with the STTs, it will be valid
only
if endorsed by the ACAT.
So if your tenancy
agreement contains any
term
that contradicts the
STTs
(eg, a requirement to have the carpets cleaned at the end of the lease),
the
term will not be
enforceable UNLESS you and the landlord apply jointly to the ACAT to
have it endorsed. The exception to this are
“posting
clauses”,
dealt with in Section 8 of the RTA, which do not require endorsement.
If, at the time of signing
the tenancy agreement, the landlord agrees to make repairs or provide a
facility, this agreement should be provided in writing. If this is not
provided, write immediately to the landlord or agent confirming the
agreement (include details of work as well as the date, and keep a
copy).
NEVER
sign anything if you are not sure of its meaning and if you do not agree
with it. Contact TAS if you require assistance.
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ACT Government Information - The ‘Renting Book’
Before the commencement of
the tenancy agreement the agent or landlord must provide (or advise you
of how to obtain) a copy of the Office of Fair Trading booklet, “The
Renting Book”. This booklet is a general guide to rights and
responsibilities
of
tenants,
landlords and real
estate agents.
It is available from the Office of Regulatory Services website:
http://www.ors.act.gov.au/
Or call 6207 0400.
What is the length of a tenancy agreement?
A tenancy agreement will
either be for an initial fixed length or on a
periodic
basis.
A
fixed term
tenancy agreement states
that the tenancy commences on a certain date, continues for a specified
length of time (usually 6 or 12 months) with the fixed term ending on a
particular date. If the tenant does nothing and stays on at the end of
the fixed term, the tenancy
automatically
becomes a
periodic tenancy.
A periodic tenancy agreement may also exist where the parties create a
tenancy but do not specify a term, such as in public housing.
The parties can agree to
sign a new fixed term tenancy agreement. However your landlord
cannot
make you ‘renew’ a tenancy agreement or sign a new agreement at the end
of the fixed term. Don't be forced or intimidated into signing
anything you don’t want to. Just because you don’t do what the landlord
wants you to do doesn’t mean he or she can automatically evict you.
Be clear about who is on
the tenancy agreement. The financial responsibility for a tenancy
usually rests with the tenants named in the tenancy agreement. This
continues during the fixed term even if you move out of the house. If
you sign a fixed term tenancy agreement, it can be expensive if you move
out early (see
Tenancy Tips:
Ending a Tenancy and Breaking a Lease.
If you are entering into a shared tenancy see our booklet “Crowded
House - A Legal Guide to Share Housing in the ACT”).
Check any special
conditions carefully. Be sure they are consistent with the standard
terms.
Are there any up front charges?
By law, only the bond and
rent in advance can be charged on entering a tenancy
(RTA
s
15,
and
STT cl
24).
The
amount of bond cannot exceed four week’s rent (cl
16), and the amount of rent in advance cannot exceed one calendar month
(cl
28).
Other charges, such as key
money, inspection fees, tenancy agreement preparation costs and the like
are
illegal
(RTA
s
15
(1)
and
STT
cl
24).
What is a bond?
A bond is a form of
security, paid by the tenant to the landlord or their agent, and then
lodged at the Office of Rental Bonds.
A landlord does not have
to ask a tenant for a bond, but if there is one, it cannot be more than
4 weeks' rent. It is a once only payment which can't be increased
or
‘topped up’. However if the same parties later sign a new agreement and
the original bond is refunded, the landlord can ask for a whole new
bond.
When
you pay a bond, the landlord is obliged by law to give you a receipt.
All tenants
contributing to the bond should complete a Bond Lodgement form,
which the landlord
must send, with the bond money, to the Office of Regulatory Services
(Rental Bonds). A landlord has 2 weeks to do this, a Real Estate Agent
has 4 weeks. A landlord and or their Agent can face penalties if the
Bond money is not lodged within that time frame.
What is a
Condition of Premises Report?
The landlord (or agent) is
obliged to give you 2 copies of a completed ‘Condition of Premises
Report’ (also
referred to
as an ‘inventory’) within 1 day of moving in. You must return a copy of
this form within 2 weeks, indicating your agreement or disagreement with
the report or parts of the report (STT 22). The report details the state
of repair of the property and lists rooms and fittings.
Check
the report very carefully
and write down details of
any marks on the walls, stains on the carpet, faulty equipment, damage
etc. The report will be used as evidence at the end of the tenancy if
there are any disputes.
It is
best to be thorough
and take photographs (even
video) of the condition of the premises when you move in.
If the landlord/agent
doesn't give you a report to fill in, then do one of your own as soon as
possible after moving in. If you don’t agree with their condition report
make sure you have made your own observations clear in the copy you are
returning to them.
VERY IMPORTANT - Keep a copy of everything for your own records!
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What are my
rights
as a tenant?
Many of your rights as a
tenant are discussed throughout this leaflet, and other Tenancy Tips.
You have the right:
· To
enjoyment of the premises
without interference from the landlord or agent;
· To
privacy in your home with access only in accordance with the Standard
Terms;
· To
have the premises fit to live in;
· To
have repairs done in a timely manner;
· To
receive receipts for all payments made to the landlord or their agents;
· To
receive 8 weeks notice of any rent increase, and
receive no
more than one rent increase every
12 months;
· To
have a rent increase reviewed to determine if it is excessive;
· To
have tenancy disputes resolved through an independent third party - the
ACAT;
· To
not be forced to leave the premises except by order of the ACAT for a
valid legal reason, AND (if you are facing eviction) to have the
Tribunal consider the hardship the eviction would cause to you or any
other person.
What are my
responsibilities
as a tenant?
You have certain
responsibilities as a tenant which are placed on you by legislation and
by the tenancy agreement which you sign. Your responsibilities include:
· To
pay the rent as agreed;
· To
take care of the premises and not cause a nuisance or annoyance to your
neighbours;
· Not
to use the premises for an illegal purpose and to observe the
valid
terms of the tenancy
agreement;
· To
allow the landlord or agent reasonable access to the premises in
accordance with the standard terms and the RTA;
· To
repair any damage negligently or intentionally caused by you, your
guests, pets or persons under your control (eg children, sub-tenants)
or compensate the owner for the loss incurred; and
· To
notify the landlord of the need for repairs or maintenance.
How do I get my bond back?
At the end of your
tenancy, you should arrange with your landlord/agent a time for a final
inspection to complete another Condition Report and to note any changes
in the condition of the property. If there is a dispute, this report and
the one completed at the beginning of your tenancy gives you evidence of
exactly what damage, if any, there was.
For more detail about bond
see,
Tenancy Tips: Bond.
What about leaving early or eviction?
See
Tenancy Tips: Ending and Tenancy & Breaking a Lease
and
Eviction in the ACT.
If these don't
answer your particular query, then contact TAS for help.
Discrimination
Discrimination in letting
out accommodation in the ACT is unlawful under the
Discrimination Act 1991
(this Act covers
discrimination on the grounds of sex, sexuality, transsexuality, marital
status, status as a parent or carer, pregnancy, race, age, religious or
political conviction, physical impairment, illness or intellectual
disability).
If you believe you are
being discriminated against in applying for a tenancy or in your
tenancy, you should seek specific advice, you can contact the ACT Human
Rights Commission on 6205 2222 (http://www.hrc.act.gov.au/)
or the Disability Discrimination Legal Service on 6247 2018 on Tuesday
9.30am to 1pm and Thursday 2.30pm to 4.30pm.
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This
is a summary of your rights and responsibilities.
If
you have a specific problem, you should seek more detailed advice.
The
information provided is based on the current state of tenancy law and
details may change.
Tenancy
Tips © 2009 Tenants' Advice Service.
The support of the ACT Government through the Dept. Justice
& Community Safety is gratefully acknowledged
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