Tenancy Law in New South Wales, regulated by the Residential Tenancies Act 1987.

This legislation details the obligations of both the landlord and the tenant before, during and at the end of a tenancy.

It is important that both landlords and tenants understand this legislation to ensure both parties know their rights and how they are protected by this law.

Tenancy agreement

A Fixed term residential tenancy agreement is an agreement between a landlord and tenant for a specific period of time. A 6 or 12 month residential tenancy agreement is the most commonly used fixed term agreement.

The contract will detail the terms and conditions of rental such as rent payment terms. Rent amounts can be negotiated between both parties. Receipts should be issued to the tenant for all rent payments unless this was paid via the bank.

The Residential Tenancies Act has standard terms and conditions that apply to all residential tenancies and a standard residential agreement must be used by law.

Before the agreement is signed the following must take place:

▪	the landlord or agent must give the tenant a copy of the proposed residential tenancy agreement
▪	the landlord or agent must inform the tenant of any terms or conditions which are not part of the standard tenancy conditions, as detailed in the Act, and which do not contravene the Act or any other relevant code of practice and are not inconsistent with the term prescribed in the standard form
▪	the tenant must be provided with a copy of “The Renting Guide” You can download this from the New South Wales Office of Fair Trading website. This booklet provides general advice to landlords, agents and tenants.
▪	the tenant advised on any costs they may have to contribute to the preparation of the rental contact (often 50% of the cost)
▪	the tenant must be given reasonable time to consider the agreement
▪	the tenant must provide the landlord or agent with their full name
▪	the owner must provide the tenant with their full name and address where the tenant can contact the owner
▪	if an agent signs the agreement on behalf of a property owner, the agent must provide the tenant with the agency’s full name, the fact that they are acting as an agent, and if the agent is a company, an employee (usually the property manager) who can be contacted in relation to the agreement
▪	the landlord or agent must give the tenant a copy of an energy efficiency rating statement (if any) for the habitable part of the premises.

If both parties still wish to pursue the tenancy then the agreement is signed, bond paid (if requested), advance rent paid and the tenant can move in. A full condition report or inventory detailing the contents and condition of the property should also be signed by both parties.

Security deposits / rental bonds

A rental bond or security deposit is not mandatory although many landlords and agents request this from their new tenant to cover non payment of rent or utility bills or damage to the property.

The maximum amount that can be requested is:

▪	4 weeks rent for unfurnished properties
▪	6 weeks rent for fully furnished properties where the rent is $250 or less per week
▪	unlimited amount for fully furnished properties where the rent is more than $250 per week

The amount of the bond must be written on the tenancy agreement and the bond money itself must be lodged with the Renting Branch of the Office of Fair Trading within 7 days. A lodgement form is required to do this and can also be downloaded from the Office of Fair Trading website. Each form has a unique barcode. It is an offence for a landlord or agent to request a bond from a tenant and then subsequently fail to lodge the bond.

Once the bond has been lodged, notification of this will be sent to the tenant.

At the end of the tenancy a full inspection of the property should be undertaken. If any problems are detected it is advised to allow the tenant reasonable time to rectify these. An application should then be made to the Office of Fair Trading for a refund of the bond. If there is outstanding money or costs then the amount should be noted on the form. If both parties agree then both parties sign the form.

In the event of a dispute both parties should first try to resolve the issue amicably. If this is not successful then either party can make a claim for a refund without the other party’s signature. A letter will then be issued to the other party informing them of the claim and allowing them 14 days to respond. If no reply is received then the bond will be paid.

It is always the landlords responsibility to prove any claim on the bond, regardless of who makes the claim.

Any interest received on the bond whilst it has been lodged will be included in the refund.

The landlord can also request a payment of rent in advance. This can be:

▪	up to 2 weeks rent if the weekly rent is $300 or less
▪	up to 1 months rent if the weekly rent is more than $300

Landlord Responsibilities

During the tenancy the landlord is required to:

▪	provide the property, any furniture, fittings and appliances in a reasonable state of repair, cleanliness, and secure condition.
▪	undertake any repairs within a reasonable time unless otherwise agreed, unless the repairs are urgent, and arrange a suitable time with the tenant to carry out these repairs (minimum of 2 days notice)
▪	repair any faults present at the time the rental commenced, unless these were noted in the tenancy agreement
▪	repair any faults present at the time the rental commenced in order to make the property fit to live in
▪	fit smoke alarms in accordance with the Environmental Planning and Assessment Amendment (Smoke Alarms) Regulation 2006 and install new batteries at the start of each tenancy.
▪	allow the tenant quiet enjoyment of the property
▪	pay the cost of the installation of any essential services, e.g. gas, water, electric
▪	pay the cost of any rates and taxes relating to the property
▪	pay the cost of any services where there is not a separate metering device
▪	pay the annual supply charge for water and sewerage
▪	pay any corporate or community fees
▪	pay any other costs for which the landlord agrees to be responsible for

An increase of the rent can only occur if specified in the tenancy agreement. The agreement must also state the amount of the increase or the method for calculating the increase. It cannot be increased within 6 months of the start of the tenancy or date of last increase. A tenant can apply to the tribunal for a review of any rent increases or decreases.

Tenant Responsibilities

During the tenancy the tenant is required to:

▪	pay the rent on time
▪	pay the cost of any metered services for the period of tenancy, if applicable. (the landlord must arrange for readings at the start and the end of the tenancy and at regular intervals. The tenant must be given time to verify these readings.)
▪	maintain and clean the property to a reasonable standard
▪	notify the landlord or agent of any problems within a reasonable time scale
▪	return the property to the same standard except for expected wear and tear
▪	replace batteries in smoke alarms in accordance with the Environmental Planning and Assessment Amendment (Smoke Alarms) Regulation 2006

They should also not:

▪	damage the property either intentionally or negligently. If so, they are required to repair or replace the item(s) at their own expense and notify the landlord or agent of this
▪	make alterations to the property without the landlord’s consent
▪	use or allow the property to be used for illegal purposes
▪	cause or allow nuisance
▪	disrupt their neighbours
▪	leave the property vacant for more than 3 weeks without informing the landlord/agent
▪	sublet without written authorisation from the landlord

Urgent repairs during a tenancy

The tenant must notify the landlord as soon as possible if there are any repairs required that are urgent. If a tenant cannot make contact with the landlord or the landlord fails to carry out these repairs then the tenant can arrange for the repairs to be undertaken. These are classed as:

▪	a dangerous electrical fault
▪	a failure of gas, electricity or water supply to the property
▪	flooding or serious flood damage
▪	serious storm or fire damage
▪	a gas leak
▪	a burst water service
▪	a blocked or broken lavatory system
▪	a serious roof leak
▪	a failure or breakdown of any service on the property essential for hot water, cooking, heating or laundering
▪	a fault or damage that causes the residential property to be unsafe or insecure

If the tenant has carried out these repairs then the landlord must reimburse the tenant within 14 days of receiving written notification from the tenant, up to but not exceeding $1000. The tenant must provide copies of all receipts for the costs involved.

Locks for the property may only be changed providing that the other party has consented. In case of an emergency the locks can be changed without the other party’s consent. A copy of the new key(s) must be provided to the other party. It is the landlords responsibility to maintain any locks or other security devices to ensure the property remains secure.

Accessing the property during the tenancy

The landlord can inspect the property four times during a 12 month period. The landlord must give at least 1 weeks written notice and both parties must agree to a suitable date and time.

The landlord cannot have access on a Sunday, on public holidays or before 8am and after 8pm unless the tenant has given their consent or the landlord needs to carry out urgent repairs or it is an emergency.

The landlord should be given access to carry out repairs, other than urgent repairs, or to install smoke alarms providing that the tenant has been given at least 2 days notice.

If the landlord believes that the tenant(s) have vacated the property without giving notice he can enter the property if he has reasonable grounds for believing that the property has been abandoned.

The tenant must allow the landlord reasonable access to the property in the last 14 days of the tenancy to show the property to prospective new tenants.

If the tenant consents or in accordance with an order from a tribunal then the landlord can enter at any time.

Ending a tenancy

If a tenancy is to end then written notice must be given by either the landlord or tenant. This notice should be posted or given personally.

A landlord can give notice to the tenant if he has entered into a contract for the sale of the property and the landlord is required to give vacant possession of the property. At least 30 days notice must be given

Either party can give notice to the other party on the grounds that the other party has breached a term or condition of the agreement. At least 14 days notice must be given.

In the event of non-payment of rent, a minimum of 14 days must have lapsed before notice can be given.

A landlord can terminate an agreement without providing any reason, however 60 days notice must be given.

If the fixed term residential agreement has ended at least 21 days notice must be given.

Notice by landlord

A landlord can give a tenant a notice of termination without having to provide any reason. However the notice must not specify a date earlier than 60 days after the day on which the notice is given.

The notice must:

▪	be in writing
▪	be signed by the landlord or the landlord’s agent,
▪	state the address of the rental property
▪	specify the date on which the property should be returned to the landlord
▪	specify the grounds (if applicable) on which the notice is given
▪	include a statement which indicates that information regarding tenancy rights and obligations is contained in the residential tenancy agreement.

Notice by tenant

A tenant can give a landlord a notice of termination without having to provide any reason. However the notice must not specify a date earlier than 21 days after the day on which the notice is given unless the landlord has agreed to an earlier date.

The notice must:

▪	be in writing
▪	be signed by the tenant or the agent of the tenant appointed under section 31
▪	state the address of the rental property
▪	specify the date on which the property shall be returned to the landlord
▪	specify the grounds (if applicable) on which the notice is given

If a property becomes uninhabitable for a period of time or is not available then either party can give immediate notice to the other party. If the agreement is not terminated then both parties can agree in writing on the amount of the rent payable. If this can not be agreed either party can apply to the Tribunal for an order to determine the amount payable. The Tribunal can also order the landlord to pay to the tenant any rent paid by the tenant that is in excess of the amount determined by the Tribunal.

Termination by the Consumer, Trader and Tenancy Tribunal

The Consumer, Trader and Tenancy Tribunal (CTTT) deals with disputes between landlords and tenants who have entered into such an agreement. Such issues can include rent increases, breaches of the agreement and termination of agreements.

Either party can make an application and if no agreement is reached between the two parties then a hearing will take place where each party can provide evidence. The Tribunal will then make orders and explain why those orders were made.

If the Tribunal makes an order terminating a residential tenancy agreement it must then make a further order for possession of the residential premises, specifying the day on which the order takes effect.

Application forms and further information can be obtained from The Consumer, Trader and Tenancy Tribunal website.

Eviction

The Tribunal can issue a possession of residential premises order. If this is not complied with a warrant authorising a sheriff’s officer to enter the property and give possession to the person in whose favour the order was made can be issued.

The officer can use such force as is reasonably necessary for this purpose.

If the tenant fails to comply with an order for possession he may be liable to pay compensation to the landlord.
This is a brief guide to Tenancy Laws in New South Wales. For a full copy of the Residential Tenancies Act 1987 (RTA) please click here.