TENANCY TIPS:
Tenancy in the ACT
** last updated: 3/4/07 **
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this tipsheet
Entering a lease (or ‘tenancy agreement’) in the ACT can involve
substantial financial responsibilities.
Make
sure you protect your interests by being aware of your rights and
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 Residential Tenancies Tribunal (RTT).
Any party to a tenancy agreement – tenant or landlord – can apply to
have their matter heard by the RTT.
What 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 in caravans, student accommodation and boarding
and lodging situations are treated differently and exempted from the
rules that apply for tenants. If you are not a tenant you will
probably still be covered by the RTA as an occupant.
For details about these protections see
Occupancy Tips.
This
leaflet concerns tenancy arrangements only.
What is a
tenancy agreement?
A tenancy
agreement is just what it sounds like - it is an agreement for a tenancy
between the landlord and the tenant. It is a contract and is legally
binding.
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 (www.tenantsact.org.au), 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 does
the tenancy agreement say?
Read your
tenancy agreement carefully,
noting the
length of the tenancy, the rent, 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 RTT. So if your tenancy
agreement contains any term that contradicts the STTs, it will not be
enforceable UNLESS you and the landlord apply jointly to the RTT for
endorsement (the exception is “posting clauses”, these 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.
ACT
Government Renting Information
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 their website:
http://www.fairtrading.act.gov.au
What are
the terms of the agreement?
A tenancy
agreement will either be for a fixed term or periodic basis.
A fixed
term tenancy agreement states that the tenancy commences on a
certain date, continues for a specified period, usually 6 or 12 months,
and ends on a certain date. If the tenant stays on at the end of the
fixed term, the tenancy automatically becomes a periodic tenancy,
unless the parties sign a new fixed term tenancy agreement. A periodic
tenancy agreement may also exist where the parties create a tenancy but
do not specify a term, such as in public housing.
Your
landlord cannot compel you to ‘renew’ a tenancy agreement or sign
a new tenancy agreement at the end of the fixed term. Don't be forced
or intimidated into signing anything you don’t want to, and remember
that just because you don’t do what the landlord wants you to do doesn’t
mean s/he can 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).
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, to the Office of Rental
Bonds. The landlord/agent has 2 weeks to do this.
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’ within 1 day of moving in (this is also
referred to as an ‘inventory’). You must return an annotated copy of
this form within 2 weeks. 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 ‑ you can even take photographs if necessary.
If the
landlord doesn't give you a report to fill in, then do one of your own
as soon as possible after moving in, a form is available from the Office
of Rental Bonds.
What are my
rights as a tenant?
Many of
your rights as a tenant are discussed throughout this leaflet, and other
Tenancy Tips. Some general points you should know are that you have the
right:
·
To quiet enjoyment of the premises without interference
from the landlord or agent;
·
For the premises to be fit to live in;
·
To receive receipts for all payments made to the
landlord;
·
To receive 8 weeks notice of any rent increase, and
receive no more than one rent increase every 12 months
·
To not be forced to leave the premises except by order of
the Residential Tenancy Tribunal, 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.
This is only a summary of
rights and responsibilities. If you have a specific problem, seek
detailed advice.
How do I get my bond back?
At the end
of your tenancy, you should have the landlord, or their agent, do an
inspection of the property to complete another Condition Report and to
note any changes in the condition of the property. If there is a
dispute, then 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
Human Rights Office on 6207 1178 or the Disability Discrimination Legal
Service on 6247 2018.
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 © 2007 Tenants' Advice Service.
The support of the ACT Government through the Dept. Justice
& Community Safety is gratefully acknowledged
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