Managing general tenancies in Queensland. Information resource for managers of general tenancies

Transcription

1 Managing general tenancies in Queensland Information resource for managers of general tenancies

2 Assistance information Translating and Interpreting Service If you need interpreting assistance to help you understand the information in this booklet, please contact the Translating and Interpreting Service on (for the cost of a local call) and ask to speak to the Residential Tenancies Authority. Arabic Khmer Korean Bosnian Samoan Chinese (Simplified) Serbian Chinese (Traditional) Spanish Croation Thai Dari Tigrinya Farsi Vietnamese Filipino (Tagalog) Indonesian Japanese Hearing and Speech Impairment: National Relay Service If you are deaf, or have a hearing or speech impairment and you use TTY or computer modem, call Disability Information and Awareness Line (DIAL) Brisbane (07) (toll-free within Australia) Fax (07) TTY (07) (toll-free within Australia) disabilityinfo@disability.qld.gov.au Managing general tenancies in Queensland Copyright Residential Tenancies Authority ISBN: First published May 2001 Pv6 Oct 2010 Written and produced by the Residential Tenancies Authority.

3 Contents Icons Icons are used to help you find important information quickly. Below is a key for the icons used in this booklet. Talk This icon is placed beside information that needs to be discussed with the tenant. Forms RTA forms are available from the RTA website, or most Australia Post outlets throughout Queensland. Fact sheet This icon indicates further information on a topic is available in an RTA fact sheet. Important This icon indicates important information on a topic. Handy checklist A handy checklist. Helping hand Services providing help or more information are listed at the back of this booklet. Penalty This icon is placed beside information that, if breached, may incur a penalty under the Act. Fines and/or court action can result from not following the rules set out in the Act. Penalties listed are for breaches of the Residential Tenancies and Rooming Accommodation Act 2008 only. Introductory information Introductory information 4 RTA forms 5-6 Rights and responsibilities 7 Before Advertising a property for rent 8 Deposits, fees and charges 8-9 Smoke alarms 9 Safety switches 10 Charging tenants for water consumption 10 Starting Checklist 11 Tenancy agreements 12 Entry Condition Report 13 Rental bond During Rent Unpaid rent Entry to the premises 19 Maintenance and repairs Fixtures and structural changes by the tenant 21 Breaches of the agreement 22 Serving notices 23 Selling or re-letting a tenanted rental property 24 Continuing a fixed term agreement 24 Ending Grounds for ending 25 Checklist 26 Notice periods for ending 26 Breaking a fixed term agreement 28 Abandoned premises 28 Exit Condition Report 29 Refunding the bond Goods and documents left behind 31 Resolving disputes Options 32 The Tribunal The Tribunal 32 Warrant of Possession 33 After Keeping information records 34 Tenancy databases 34 Contacts and resources 35 3

4 Introduction Introductory information This guide provides information about the Residential Tenancies and Rooming Accommodation Act 2008 (the Act) for lessors (landlords) involved in renting residential premises such as houses, townhouses, units and houseboats in Queensland. It does not apply to moveable dwellings or rooming accommodation. This booklet does apply, however, where a rooming accommodation provider has chosen to opt in to the general tenancies rules and place residents on a General Tenancy Agreement (Form 18a) and not a Rooming Accommodation Agreement (Form R18). Check with the RTA if you are unsure which rules apply to you. This booklet has been designed as a practical aid to assist lessors in the management of rental properties. It contains easy to follow instructions about the procedures to use while running the business of renting a property. The flow charts and checklists contained in this booklet will help lessors establish tenancy management procedures which comply with the Act. The Act governs transactions between lessors and tenants in relation to residential accommodation. The Act is a civil law, in the sense that its provisions set rules for the conduct of transactions between people. However, the Act does have penalties for not adhering to the rules of the Act and its associated Regulation. Breaches of the Act can result in court action. Terms used in this publication The Act: All references to the Act refer to the Residential Tenancies and Rooming Accommodation Act 2008 unless otherwise stated. Grounds: The Act outlines specific grounds, or reasons, for parties to take actions such as ending the agreement. If the reason for the action taken is not listed as a ground in the Act, it is considered to be without grounds. Lessor: In this booklet, the word lessor is used to mean lessor (property owner) or agent (person who manages the residential tenancy or acts on the lessor s behalf). Lessors are commonly referred to as a landlord. Tenant: A tenant is the person/s named on the tenancy agreement, who, through the agreement, is given the right to occupy the premises. Tribunal: All references to Tribunal indicate the Queensland Civil and Administrative Tribunal (QCAT). Sections: Throughout this publication we have listed the sections of the Act that topics relate to. This gives you a chance to see exact wording in the section of the Act you need to refer to when managing a rental property. The list is not exhaustive and you should be careful to ensure you have consulted all relevant sections of the Act prior to taking action. You: This booklet uses the word you to refer to a lessor, or an agent acting on their behalf. This booklet is written for the lessor s perspective. Other Acts It is important for lessors to remember that there are other Acts to be considered when managing rental properties. It is up to the lessor to ensure the agreement, tenancy and property comply with all relevant Acts, for example, the Fire and Rescue Service Act 1990 (for requirements about smoke alarms) and the Anti-Discrimination Act See pages 9-10 for more information. 4

5 RTA forms RTA forms for general tenancies Form name Form 1a Entry Condition Report Form 2 Bond Lodgement Form 3 Transfer of Bond Form 4 Refund of Rental Bond Form 5 Change of Lessor or Lessor s Agent Form 6 Change of Shared Bond Arrangement Form 7 Part-Payment of Rental Bond From 8 Lessor s Agent Signature Record Form 9 Entry Notice Purpose This form must be filled out by the lessor and given to the tenant prior to, or on the day of, occupation. It is proof of the condition of the premises at the start of the agreement. The lessor must use this form to lodge a rental bond with the RTA within 10 days of receiving it from the tenant. If the bond is being lodged in instalments, this form is only required for the first instalment. For later instalments, a Part-Payment of Rental Bond (Form 7) should be used. A bond can be transferred from one property to another, as long as both the new and previous lessor agree. This form is used to notify the RTA of the change to the details of the bond. This form must be filled in and sent to the RTA before a bond can be released to the lessor and/or the tenant. This form advises the tenant and the RTA of the change to a lessor or agent of a premises while the tenancy is continuing. This form is used when is continuing and there is a change to some but not all the tenants who contributed to the bond. It is not to be used where one tenancy ends and all different tenants start a new tenancy. This form is used to make part-payments of rental bond to the RTA during the tenancy. This may occur when the tenants are paying off the bond to the lessor/agent, or when the rent increases and there is, as a result, an increase in the tenant s rental bond. The initial part-payment is made via a Bond Lodgement (Form 2). Include new rent amounts on the form if it is for a bond increase. This form is used to notify the RTA that there have been additions or deletions to the signature list of property management personnel. It records the names and signatures of people who are authorised to sign RTA forms. This form is used to notify tenants about an entry by the lessor or their agent (e.g. renting agent, maintenance personnel or sales agent). Introductory information Form 10 Notice of Lessor s Intention to Sell Premises Form 11 Notice to Remedy Breach Form 12 Notice to Leave This form is used by lessors, sales and renting agents to notify tenants of the lessor s intention to sell the premises. This form is used during the tenancy where either the tenants or the lessor claim the other has breached one (or a number) of terms of the General Tenancy Agreement (Form 18a). If the breach is for rent arrears, details about the rent owing must be included on the form. This form is used by the lessor to notify the tenant/s to vacate the premises. It may only be given in accordance with the Act. Continued on the next page. 5

6 RTA forms Continued from previous page. Introductory information RTA forms for general tenancies Form name Form 13 Notice of Intention to Leave Purpose This form is used by the tenant/s to notify the lessor that they wish to vacate the premises. It may only be given in accordance with the Act. Form 14a Exit Condition Report Form 15 Abandonment Termination Notice Form 16 Dispute Resolution Request Form 17a Renting a house or unit in Queensland Form 18a General Tenancy Agreement Form 19 Notice to Vacate from Mortgagee to Tenant/s This form records the condition of the premises at the end of the tenancy. It is compared to the Entry Condition Report (Form 1a) to establish any damage or changes to the premises during the course of the tenancy. This form is used when the lessor is ending the agreement because the lessor believes, on reasonable grounds, that the tenant has abandoned the premises. This form is used by either tenants or lessors to request assistance from the RTA s Dispute Resolution Service in resolving a dispute regarding the agreement. This service is not for disputes between neighbours or between co-tenants. The lessor is required by law to give the tenant/s a copy of the information statement Form 17a when committing them to the tenancy. It outlines the tenants rental rights and responsibilities. When a tenant rents a property, there must be a written General Tenancy Agreement (Form 18a) in place, even if they are renting from a friend or family member. It is the lessor s responsibility to organise the agreement and give a copy to the tenant before they are committed to, or pay any money in relation to, the tenancy. This form is used to tell the tenant that they have to leave the premises because a mortgagee (such as a bank or financial institution) is going to take possession of the premises from the owner. If the lessor has an agent acting on their behalf, the agent can issue these forms to the tenant. RTA forms, fact sheets and publications can be ordered by: visiting the RTA website at calling the RTA on faxing a Request for Forms to visiting the RTA office at level 23, 179 Turbot St, Brisbane A selection of the most commonly used forms are also available at Australia Post outlets around Queensland. 6

7 Rights and responsibilities Rights and responsibilities Sections 185 and 188 All lessors and tenants are bound to comply with the provisions of the Act. Both lessors and tenants have rights and responsibilities under these laws. Did you know? Managing property is a business. By using the correct RTA forms and following the rules set out by the Act, you can help to protect your business and minimise disputes. Introductory information Tenants rights the premises are fit to live in and in a good state of repair. Premises comply with health and safety regulations to have quiet enjoyment of the place including the dwelling and surrounding yard the premises are reasonably secure, and the tenant/s are provided with one complete set of keys for the household plus extra keys for entry for each tenant to have vacant possession of the premises. Tenants responsibilities to abide by the terms of the tenancy agreement to pay the rent on time and in the way written in the tenancy agreement not to use the place for any illegal purpose not to cause a nuisance or interfere with the reasonable peace, comfort and privacy of a neighbour to keep the premises and inclusions clean not to damage the premises or inclusions to report any damage to the premises to the lessor as soon as possible to be responsible for the behaviour of their guest/s. Lessors rights to have rent paid on time and in the way written in the agreement to have damage caused by the tenant/s or their guest/s, paid for by the tenant/s to have the tenant/s abide by the terms of the tenancy agreement that the premises is not used for any illegal purpose. Lessors responsibilities to abide by the terms of the tenancy agreement to ensure the premises are clean and fit to live in at the start of the tenancy and abide by health and safety laws to provide the tenant with reasonable peace, comfort and privacy to ensure reasonable security, and provide one tenant with one complete set of keys plus keys for entry for each other tenant named on the agreement to pay all charges, levies, premiums, rates and taxes payable for the premises to cover the cost of preparing the tenancy agreement to maintain the premises and inclusions in good repair to keep any common area clean, where there is a common area. 7

8 Before Advertising the property Key deposits Before When an agent acts on a lessor s behalf Under the rules for renting, the lessor is generally responsible for ensuring the requirements of the Act are met, and can be held liable for any omissions. If you have someone acting on your behalf, you must ensure they understand their obligations. For example, if you have appointed a property manager to manage your property, you should have a formal agreement in place (e.g. PAMD Form 20a if the person is a real estate agent). Clear communication Clear communication is vital between lessors and prospective tenants. Being clear about expectations and what is included in the tenancy agreement gives both parties a chance to resolve any concerns or misconceptions prior to the tenancy starting. Having clarity at the start of the agreement will help to prevent disputes later in the tenancy. The Act s provisions generally take effect once a General Tenancy Agreement (Form 18a) has been completed and committed to by a lessor and a tenant. Although the Act generally does not cover the application process, elements relating to money are covered. Advertising the property for rent Section 57 When offering premises for rent, you must not advertise or otherwise offer the property unless a fixed amount is stated in the advertisement or offer (such as $450 per week). This section of the Act prohibits the use of (for example): make an offer rent ranges (such as from $ per week), or auction-style bidding for rental premises. However, you do not breach the Act by placing a sign on or near the premises without stating the amount of rent on the sign (e.g. To Let sign). Did you know? The RTA website publishes the median rent price for Queensland rental properties on a quarterly basis. Visit to see what the median rent is in your area. Key deposits Sections The Act allows you to charge a prospective tenant a refundable monetary deposit in exchange for a key to inspect the premises. This gives a prospective tenant a chance to view the property prior to entering into an agreement. It is not compulsory to take a key deposit. However, if you take one you must give a receipt at the time the payment is made that states: the name of the person receiving the deposit the name of the person paying the deposit the address of the premises for which the key is given the date the deposit is received the amount paid that the money was for a key deposit, and when the key is to be returned. The key deposit must be fully refunded when the prospective tenant returns the key, whether or not they choose to enter into agreement for that premises. 8

9 Fees and charges Smoke alarms Holding deposits Fees and charges Sections Prospective tenants may be asked for a deposit to reserve or hold premises they intend to rent. However, you can only accept money from a prospective tenant if a copy of the proposed agreement, including special terms, has been given to the tenant. Under the Act, the only other deposit that can be taken from tenants at this stage is a key deposit (see page 8). The time period for which a holding deposit will apply is negotiated between the prospective tenants and the lessor. When a period is agreed, it should be written on the receipt for the deposit. If no holding period is stated on the receipt, the Act states that the holding period is 48 hours. You can only take one holding deposit at any one time for the property. On accepting a holding deposit, the lessor must give a signed receipt and ensure the property is available if the prospective tenant proceeds with the tenancy. If the prospective tenant does not proceed with the tenancy and advises you within the holding period, the entire holding deposit must be refunded to the person within three days. You can keep the holding deposit if the prospective tenant fails to notify you of their decision not to go ahead with the tenancy within the agreed holding period. If the prospective tenant indicates that they will proceed with the tenancy but then fails to enter into the tenancy agreement, they will forfeit the holding deposit. When a tenant commits to agreement after paying a holding deposit, the holding deposit becomes part of the rental bond. Any surplus amounts then become rent paid in advance. Rental bond and rent-in-advance can be requested once the tenant has committed to the tenancy. Section 59 You must not take an amount from a prospective tenant for, other than the following: a key deposit a holding deposit a rental bond, or rent. You can not charge a fee to enter into, continue, extend or develop agreement, other than an amount permitted under the Act. Did you know? Lessors can not charge an application fee to a prospective tenant. Smoke alarms Sections 104RA 104RJ of the Fire and Rescue Service Act 1990 Both tenants and lessors have responsibilities when it comes to smoke alarms. Lessors are responsible for: installing smoke alarms in accordance with the Building Code of Australia testing and cleaning smoke alarms within 30 days of the start or renewal of replacing each battery that is flat or nearly flat within 30 days before the start of the tenancy replacing smoke alarms before the end of their service life (or, if they end their service life, replace the alarm immediately). You must not remove smoke alarms or their batteries unless they are being immediately replaced or maintained. At no time can you do anything to interfere with the alarm s warning sound, or the effectiveness of the alarm (such as paint them). For more information, including tenant obligations for smoke alarms, see the RTA s Smoke alarms fact sheet, contact the Queensland Fire and Rescue Service on , or visit the website Before 9

10 Discrimination Charging tenants for water Before Electrical safety switches Section 80A of the Electrical Safety Regulation 2002 Under Queensland law, all residential premises (rented and owner-occupied) must be fitted with a working safety switch. For more information, contact the Department of Justice and Attorney-General, or visit the website Discrimination Section 7 8 of the Anti-Discrimination Act 1991 You must not discriminate unlawfully when selecting a tenant. The Anti-Discrimination Act 1991 and Federal anti-discrimination laws protect tenants and prospective tenants. You can not impose conditions on which make it harder for people in particular groups to gain access to rental properties. You must select tenants using business principles, such as risk assessment or ability to pay rent, rather than assumptions about a type of person. Under anti-discrimination laws it is unlawful to treat people unfairly or unfavourably in any way in connection with accommodation because of: sex relationship status pregnancy parental status breastfeeding age race impairment religious belief or religious activity political belief or activity trade union activity lawful sexual activity gender identity sexuality family responsibilities association with, or relation to, a person identified on the basis of any of the above attributes. It would be considered discrimination if you were to treat people unfairly on any of the above grounds by (for example): refusing to rent a property charging them higher rent or additional bond imposing different conditions, or evicting them. Further information about discrimination is available from the Anti-Discrimination Commission of Queensland on Charging tenants for water Section 166 You are able to pass on the full water consumption costs to tenants provided all of the minimum criteria for water charging have been met. They are: the rental premises is individually metered (and/ or water is delivered by vehicle), and the rental premises is water efficient, and the tenancy agreement states the tenant must pay for water consumption. Water efficient rental premises are where required internal cold water taps, showerheads and toilets meet the performance standards for a 3 star WELS rating or higher. These efficiency levels may be achieved through installing 3 star WELS rated products or through the use of add on devices such as aerators or flow restrictors. For more information see the Water charging fact sheet. 10

11 Starting Checklist Forms to be used Form 1a Entry Condition Report General Tenancies Form 2 Bond Lodgement Form 17a Renting a house or unit in Queensland Form 18a General Tenancy Agreement Checklist Are the premises clean and in good repair? Are locks and security devices in good working order? Do you have a full set of keys for one tenant (and keys to enable entry to the premises for any additional tenants)? Have you worked out who will be the point of contact for emergency repairs? Will you take a key and/or holding deposit? (See page 9 for the rules about holding deposits) Will you take a bond? (See page 14 for the rules about taking bond money and how to lodge the bond with the RTA) Do you have a copy of the Renting a house or unit in Queensland (Form 17a) to give to the prospective tenant/s upon committing to the agreement? Have you prepared a copy of an Entry Condition Report (Form 1a)? Have you established what you are prepared to offer in the agreement? (For example, fixed term or periodic agreement, or any inclusions such as a fridge) Have you worked out what special terms you would like the tenant to adhere to? (See Special terms on page 12) Who will pay for water? If the tenant is to pay for water consumption, have you recorded the water meter reading on the Entry Condition Report (Form 1a)? (See the rules on water charging on page 10) Have you prepared a copy of the General Tenancy Agreement (Form 18a) including special terms, to give to a prospective tenant to consider? See below. Have you included a copy of any body corporate rules and by-laws with the agreement, if applicable? Starting Giving documents to a tenant Sections 58, 65 and 67 A lessor must, by law, give the following documents to the tenant: a copy of the proposed tenancy agreement and any special terms before accepting any money from the tenant or committing them to the tenancy (this includes tenancy application forms that commit a tenant to rent a property if the lessor chooses their application) a copy of the information statement Renting a house or unit in Queensland (Form 17a), and a copy of the Entry Condition Report (Form 1a) (see also page 13). You must also ensure there is no legal impediment preventing the tenant from moving into the premises. For example, you may not rent out a granny flat if it has not been approved and appropriately zoned by the local council. Additionally, if you are planning on marketing the property for sale within the first two months of a 11

12 Tenancy agreements Starting fixed term tenancy, check the rules around selling a tenanted property on page 24 before signing up the tenant. By law, you must give a copy of Renting a house or unit in Queensland (Form 17a) to the tenant at the start of the tenancy. See page 6 for details on how to order copies of the booklet. Tenancy agreements Sections The lessor must ensure that there is a written agreement (a General Tenancy Agreement (Form 18a)) with the tenant which complies with the Act. The agreement outlines the legal rights and responsibilities of the tenant and lessor which are effective for the term of the agreement. The lessor is responsible for ensuring the tenancy agreement complies with the Act. The Act states: the lessor must ensure the agreement is in writing to the extent, and in the way required, by this section the written agreement includes the standard terms for the agreement as well as any special terms the agreement must be written in a clear and precise way, and the costs of preparing the agreement are payable by the lessor. Nothing in this section of the Act requires the tenant to prepare the written agreement, or affects the enforceability of an agreement that is not in writing. The RTA produces forms and fact sheets for use by tenants, lessors and agents. Copies of all RTA forms and fact sheets are available to be ordered. See page 6 for further information on how to obtain RTA resources. 1. Fill out the General Tenancy Agreement (Form 18a) complete with standard and special terms, and give to the prospective tenant to consider before taking any money for rent or bond. Do not sign the agreement before giving it to the tenant. Once you have given a copy of the proposed agreement, you can ask for a holding deposit if appropriate. 2. Once the tenant agrees to the terms and conditions of the agreement and has committed to the tenancy, any holding deposit becomes bond and any surplus amounts go towards rent-in-advance. The tenant must return a signed copy of the agreement within 5 days. 3. Give the tenant: a. a copy of the agreement signed by both parties within 14 days b. a copy of the information statement Renting a house or unit in Queensland (Form 17a), and c. an Entry Condition Report (Form 1a) with the lessor/agent side completed. It is good practice to discuss and, if necessary, negotiate the terms of the agreement including special terms and how the rent might be paid before the agreement is signed. The Act states that the lessor must ensure the agreement is in writing. Special terms Section 53, 54 and 56 The Act provides for the inclusion of additional tenancy conditions known as special terms. All special terms are negotiable and should be discussed with the tenant prior to the tenant signing the tenancy agreement. Special terms may include details regarding pets, garden maintenance, rent increases, water charging, smoke alarms, carpet cleaning, pest control and swimming pools. Special terms should be used to make clear any issues specific to the tenancy. For example, if the carpets have been cleaned for the beginning of the tenancy, it may be useful to have a special term requiring the tenant to hand the carpets back in the same condition; that is, cleaned. 12

13 Share households Entry Condition Report It is a breach of the Act to add a special term that is in conflict with the Act. Any such terms are not binding or enforceable, even though both parties may have signed the agreement. The Act states that an agreement is void where it seeks to exclude, change, or restrict the operation of the Act. Attempting to contract out is an offence carrying 50 penalty units, or $5,000 (as at 1 July 2009). Types of tenancy agreements The Act generally covers people who share rented homes. Share households are arrangements where a number of people have agreed to live together. All tenants named on a General Tenancy Agreement (Form 18a) are responsible for the tenancy. A General Tenancy Agreement (Form 18a) is a legal document which carries with it legal rights and responsibilities. Tenants on an agreement can be named in Item 2 of the agreement, or indicated by a number in Item 15 of the agreement. As the lessor you have the right to know and approve of the people residing in the rental premises. This might apply to all categories of share households described in the following paragraphs. Approval for new tenants or subtenants needs to be made in writing. You should remember, however, that you can not unreasonably refuse to give your permission to such a request (under section 238). Types of share households Co-tenancies where all occupants are named on the agreement as tenants. Tenants are jointly and individually responsible for the rent and other obligations under the agreement. This means that each tenant is liable for losses individually or together at the discretion of the lessor. Multiple individual tenancies where the lessor offers each individual occupant a separate agreement. This arrangement may not be covered by the rules in this booklet. Check with the RTA to see whether the accommodation qualifies as rooming accommodation and falls under different rules. Sub-letting where one or more occupants are named as tenants on agreement, and those tenants then establish themselves as head tenants through a sub-agreement tenancy with other occupants. This arrangement is made for the occupants to occupy some or all of the premises. Subtenants have no direct relationship with the lessor, but instead deal directly with the tenant named on the original agreement. If a head tenant collects a bond from the subtenant, they must lodge it with the RTA within 10 days with the appropriate forms. A tenant s legal responsibility is affected by their type of tenancy arrangement. In some instances it may be difficult to categorise the tenancy arrangement and the Tribunal may have to resolve the issue. For more information, see the RTA s General Tenancy Agreements and Share homes, co-tenancies and sub-letting fact sheets. Did you know? There is a legal requirement to keep a copy of agreement for a period of one year after the agreement ends. See page 34 for the full list of documents you must keep after the tenancy has ended. Entry Condition Report (Form 1a) Section 65 The Entry Condition Report (Form 1a) is an important document that records the condition of the premises at the start of the tenancy. It will be used at the end of the tenancy to determine whether any damage to the premises was caused before, or during, the tenancy. To fill out the form you will need to go through each room and mark the condition of the premises on the form. It is important to include comments where possible regarding the cleanliness of the property, any pre-existing damage and the working condition of property inclusions (such as ceiling fans). The Entry Condition Report (Form 1a) may become an important piece of evidence if you need to make a claim on the bond at the end of the tenancy, or there is a dispute over the condition of the premises. Starting 13

14 Rental bond Starting The process: 1. The lessor fills out the Entry Condition Report (Form 1a) before or on the day of occupation: a. recording the water meter reading (if premises are individually metered) b. noting the presence of any water efficient devices c. completing and signing the left hand side of the report, and d. giving a copy to the tenant before or on the day of occupation (keeping a copy for themselves). 2. The tenant completes and signs the right hand side of the report, and returns it to the lessor within three days. 3. The lessor gives a completed copy of the report (signed by both parties) back to the tenant within 14 days and files a copy for use at the end of the tenancy. Unapproved occupants The lessor has the right to know and approve of the occupants living at the premises. Approval for additional occupants must be given by the lessor in writing. A lessor must not unreasonably refuse to give permission. If permission is not granted, the lessor can seek removal of the tenants by first issuing a Notice to Remedy Breach (Form 11) to the tenants. Additionally, the matter may be pursued through the RTA s Dispute Resolution Service or the Tribunal. Rental bond Bond Sections Rental bond is money paid by (or for) the tenant as financial protection over the property in case the tenant breaches the terms of the tenancy agreement, for example, by causing damage to the property. Important information about rental bonds: if you take a bond you must give a receipt to the tenant immediately if the rent is $700 a week or less, the maximum bond payable is the equivalent of four weeks rent. If the rent is more than $700 per week, the bond amount should be negotiated with the tenant you must lodge the bond with the RTA within 10 days of receiving it using a Bond Lodgement (Form 2), regardless of any internal administration procedure (such as lodging bond at mid-month and end of month) that may be in place. Once receiving the bond money the RTA will send an official receipt to you and each of the bond contributors (tenant/s) that features an allocated Rental Bond Number. This bond number should be used when contacting the RTA about the bond held. 14

15 Rental bond Rental bond loans The Department of Communities (Housing and Homelessness Services) provides bond loans to help tenants secure private rental accommodation. Where a tenant has applied for a bond loan, the lessor should ensure that they have been successful in their application before allowing the tenant to take possession e property. You will be required to complete the details of property to be rented on the appropriate form. It is vital these details are completed accurately. You will receive written confirmation once the bond loan has been approved. The tenant will also provide you with three copies of the Department of Communities Bond Lodgement (Form 2c) which you must lodge with the RTA within 10 days. If not lodged within 10 days the loan may be cancelled. No changes can be made to the details on the bond loan forms. If a change is made the RTA will not accept the form and the loan will be cancelled. Part payment of bond You can choose to accept bond payments in instalments. You and the tenant should come to an agreement about the number and amount of instalment payments to be made and record this on the agreement. The first payment should be lodged using a Bond Lodgement (Form 2), and each subsequent instalment with a Part-Payment of Rental Bond (Form 7). Each instalment must be lodged within 10 days of receiving it. Transfer of bond Tenants can ask to transfer a bond from their last place to their new place. A tenant can only transfer the bond if the new and previous lessors both agree to the transfer. A Transfer of Bond (Form 3) should be filled out and signed by both the tenant/s and the previous lessor, to transfer bond to another lessor. This form must be sent to the RTA. If you are receiving a bond from another lessor, ensure you sight the Transfer of Bond (Form 3) signed by the previous lessor and tenant before it is lodged with the RTA. Fill out a Bond Lodgement (Form 2), ensuring you note the previous bond number at question nine, and send it to the RTA. If there is a dispute with the Transfer of Bond (Form 3), the Bond Lodgement (Form 2) will not be processed. It is advisable to collect the full bond from the tenant before the tenancy begins. A bond loan from the Department of Communities (Housing and Homelessness Services) can only be transferred if there is no claim on the bond by the last lessor, and if all tenants with the bond loan move into the new residence. It is advisable to confirm the transfer of the bond with the previous lessor before allowing the tenants to move into the property. Increasing the bond If the rent payable under the agreement has increased, you can only increase the bond if there has been at least 11 months since the previous bond increase. You must give the tenant one month written notice of the increase. You can increase the bond during a fixed term tenancy only if you include a special term about the rent increase in the tenancy agreement, and follow the other rules around rent increases (see page 17). You must lodge the bond increase amount with the RTA within 10 days of receiving it along with a completed Part-Payment of Rental Bond (Form 7). It is important to indicate the new rent amount on the form when lodging the extra bond money. Did you know? Managing a number of bonds? Save time by managing them electronically. Contact the RTA about managing your bonds online with e-services, or visit Starting 15

16 Starting Rent Starting Tenancy agreements Sections Rent The amount of rent payable, the frequency and method of rent payment must be stated in the General Tenancy Agreement (Form 18a) at Items 7 to 10. The Act lists the following ways tenants are able to pay rent: cash cheque deposit to lessor s nominated bank account credit card EFTPOS, or deducation from pay, pension or other benefit. If you want rent paid in another way, you and the tenant can also make an agreement about how the rent will be paid. If you want the tenant to pay rent in a way not listed above (such as rent card or money order), then you must offer two additional ways that are listed above (such as cash and cheque). Additionally, if proposing a way not listed above, you must inform the tenant of all associated costs they may incur if using that method of rent payment. Rent accrues on a daily basis. When the agreement ends, any rent owing should be calculated at a daily rate. Where a dispute occurs, either the tenant or lessor may apply to the Tribunal for an order on the amount of rent to be paid at the end of. You can not seize or sell a tenant s property or goods in return for unpaid rent or other money owed for damage to the premises. Receipts and records for rent Section 88 If a tenant pays rent in cash, you must give a receipt at the time of payment stating: the tenant s name the address of the premises the date payment was made the period for which the payment is made the amount of the payment, and that it is for the purpose of rent. Tenants can request a receipt if the payment was made by cheque. Other forms of rent payment (e.g. direct debit) do not require receipts, but you must keep full and accurate rent payment records. Rent payment records must show the same information as required for rent receipts. A tenant can ask for a copy of their rent record which you must provide within seven days. Rent records and receipts must be kept for one year after the tenancy ends. See page 34 for other documents that need to be kept after ends. Rent in advance Section 87 You can ask a tenant for rent to be paid in advance. Under a fixed term agreement, the maximum amount that can be requested in advance is four weeks rent. Under a periodic agreement, the maximum is two weeks rent. The tenant can not be asked to pay more rent until the rent paid in advance has been used up. Rent in advance is not the same as bond. It is not lodged with the RTA and can be required in addition to a rental bond. 16

17 Rent Increasing the rent Decreasing the rent Section You can not increase the rent within six months of the tenancy beginning, or six months from a previous rent increase, regardless of whether the tenant is on a fixed term or periodic agreement. If the tenant is on a fixed term agreement you are unable to raise the rent unless you have included a special term in the agreement stating when the rent is to be increased, and by how much. Rent can be raised during a periodic agreement, as long as six months have passed since the tenancy began, or the last rent increase. No matter what type of agreement (fixed term or periodic), two months written notice of the increase must be given to the tenant. You can not impose a penalty or increase the rent if the tenant breaches the agreement. Excessive rent increases Section 92 If a tenant believes a rent increase is excessive, they can apply to the Tribunal to have an order made about the increase. Under a periodic agreement the tenant has 30 days from the day of receipt of the notice of the increase to apply to the Tribunal. If on a fixed term agreement, the tenant must apply to the Tribunal before the term of the agreement ends. Tenants can also dispute a significant rent increase between subsequent agreements for the same property by lodging a Dispute Resolution Request (Form 16) with the RTA. The Form 16 must be lodged within 30 days after the tenant signs the new agreement. If dispute resolution is unsuccessful, they can apply to the Tribunal for a review of the increase. However, if the Tribunal decides the rent increase is reasonable, the tenant must pay the new amount for the duration of the agreement. Similarly, if the Tribunal decides the rent increase was excessive, the Tribunal will set a new rent amount. Both parties will be bound to these new terms. Section 94 If the standard of the premises falls substantially, for example, through damage by storm or deterioration over time, the tenant may seek to negotiate a rent decrease. The tenant may also seek a rent decrease if a service that is normally included in the rent, such as electricity or a swimming pool, becomes unavailable. The amount of the decrease would depend on the length of time the service is unavailable, and the impact it has on the living arrangements of the tenant. If you and the tenant are unable to reach an agreement about a reduction in rent, the tenant or the lessor may seek assistance from the RTA s Dispute Resolution Service using a Dispute Resolution Request (Form 16). Did you know? The time frame for notice of a rent increase applies during. If you are offering a continuing tenant a new tenancy agreement with an increased amount of rent, there is no required time frame to inform them of the increase as you are offering them a new agreement. However, six months must have passed since the previous amount of rent became payable. For more information, contact the RTA on Unpaid rent Non-payment of rent is a breach of the agreement. Rent is overdue if it remains unpaid for seven days after the due date (stated in the General Tenancy Agreement (Form 18a)). During this time you can talk to the tenant, remind them that their rent is overdue and discuss whether there is a problem. On the eighth day after rent is due you can give the tenant a Notice to Remedy Breach (Form 11) including details such as how much rent is owed and how much needs to be paid to fix the arrears. You must give the tenant seven days to pay the overdue rent to remedy the breach. Starting 17

18 Rent Unpaid rent procedure If rent remains unpaid for up to seven days, talk to the tenant and discuss whether there is a problem. On the eighth day of non-payment, give the tenant a Notice to Remedy Breach (Form 11) with seven days to remedy the breach. Talk to the tenant about options for payment. Starting If rent is still not paid by the eighth day after giving the Notice to Remedy Breach (Form 11), you need to decide if you want to end the tenancy. Yes No End the tenancy Give the tenant a Notice to Leave (Form 12) with seven days notice for rent arrears. Continue the tenancy Talk to the tenant to try to sort out the problem. Seven days after you have given them the Notice to Leave (Form 12), they must move out. If they don t move out, you can apply to the Tribunal for a Termination Order and a Warrant of Possession within 14 days of the handover day on the Notice to Leave (Form 12). The police have the power to enforce any Warrants of Possession issued by the Tribunal. See Warrants of Possession on page 33. If unsuccessful, complete and send to the RTA a Dispute Resolution Request (Form 16). A conciliator will try and negotiate an agreement to suit all parties. If unsuccessful, apply to the Tribunal for an order for the tenant to pay their rent. OR Use the procedure outlined in Ending, on page 26. If the tenant is continually behind in rent payments, even if they rectify the arrears each time, there are grounds to end the tenancy due to repeated breaches. See page 22 for more information. Making agreements about rent It is possible for a tenant and lessor to make agreements about the payment of outstanding rent, for example a payment plan, or a lump sum on a due date. Ensure any agreement about rent and its payment is in writing and signed and dated by all parties to the tenancy agreement. 18

19 During Entry to the premises Forms to be used Form 9 Entry Notice Form 11 Notice to Remedy Breach Form 16 Dispute Resolution Request Entering the premises Sections and 202 You are able to enter the property under the rules of entry under the Act, however you must take reasonable steps to ensure the privacy of the tenant in the property, and follow the rules as written in the Act: in most cases you must give the listed tenants appropriate notice for the entry on an Entry Notice (Form 9) entry must happen at a reasonable time. You can not enter on Sundays, public holidays, or any other day after 6:00pm and before 8:00am, unless the tenant agrees, and Lawful purpose of entry Notice Further information To inspect the premises Seven days A maximum of one routine inspection in a three month period. A follow up inspection to check a significant breach* has been fixed To carry out repairs or maintenance to the premises including safety switch and smoke alarm installation A follow up inspection to check on repairs undertaken To show the premises to a prospective purchaser To show the premises to a prospective tenant To allow a valuation of the premises If you reasonably believe the premises have been abandoned If the tenant agrees that you or your agent can enter 24 hours Entry must occur within 14 days of the expiry date on the Notice to Remedy Breach (Form 11). 24 hours Entry can occur without notice if the premises is located in a remote area and there is a shortage of tradespeople. 24 hours Entry must occur within 14 days of the maintenance or repairs being completed. 24 hours A reasonable amount of time must have passed since the last entry for this reason. There are different rules for open houses. See page hours A reasonable amount of time must have passed since the last entry for this reason. There are different rules for open houses. See page 24. The tenant must have also given a Notice of Intention to Leave (Form 13), or received a Notice to Leave (Form 12). 24 hours 24 hours At the agreed time if the lessor or agent is entering alone (or lessor is entering with their agent), you must specify on the Entry Notice (Form 9) a two hour period in which you intend to enter the premises. You must enter the property within that period and can stay for as long as it reasonably takes for you to complete the job, for example, an inspection. The two hour window of entry does not apply to entry by another person such as trades people, either alone or with the lessor or agent. During Continued on the next page 19

20 Entry to the premises Maintenance Continued from the previous page Lawful purpose of entry (continued) In an emergency If you or your agent reasonably believes that entry is necessary to protect the premises from damage that is about to happen By order of the Tribunal Notice (continued) No notice required No notice required As specified in the order. Further information (continued) * A significant breach is defined by the Act as a breach related to any of the following: using the premises for an illegal purpose the number occupants allowed to reside in the premises keeping a pet on the premises, and another matter, if the reasonable cost of rectifying the matter exceeds one weeks rent for the premises. Disputes about entry Maintenance and repairs During Where there is a dispute about entry, the RTA encourages lessors and tenants to try and resolve the dispute by talking to each other and finding out their rights and responsibilities under the laws. Lessors are encouraged to negotiate the entry time with the tenant. Where a dispute can not be resolved through negotiation with each other, either tenant or lessor can lodge an application directly to the Tribunal for an order made about the matter. Visit for more information on applying to the Tribunal. If the entering agent is unknown to the tenant, the tenant may withhold consent to enter unless the agent shows written evidence of their appointment by the lessor. The Act specifies that the lessor is responsible for: maintaining the premises in such a way that the premises remain fit for the tenant to live in, and maintaining the premises and the inclusions in good repair, that is, in a good working condition having regard to their condition at the start of the tenancy. The Act does not specifically cover maintenance for lawns, tap washers and so on, therefore these issues should be discussed with the tenant prior to starting the tenancy and noted in the agreement. The tenant should notify the lessor of any maintenance that is needed, preferably in writing. The tenant may use a Notice to Remedy Breach (Form 11) for this purpose. Routine repairs 20 Sales, open houses and auctions You may enter to show a prospective buyer or tenant the premises, after giving the current tenant notice using the appropriate form (either a Notice of Lessor s Intention to Sell Premises (Form 10) or a Notice to Leave (Form 12)). If you wish to hold an open house or auction on the premises, you must have the written consent of the tenant. For more information on selling a tenanted property, see page 24. Section 215 The Act states that unless a repair is an emergency repair, it is a routine repair. The tenant has an obligation to notify you of any damage or necessary repairs. It is important to discuss any issues surrounding the repairs with the tenant to minimise the chances of a dispute arising. If routine repairs are not done within a reasonable time, the tenant can give you a Notice to Remedy Breach (Form 11) allowing a minimum of seven days within which to carry out the repairs. If the repairs are still not done, the tenant can lodge a Dispute Resolution Request (Form 16) with the RTA s Dispute Resolution Service. If conciliation