A brief guide to Tenancy Law in Tasmania.

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

There are two types of residential tenancy agreements, a Fixed Term Residential Tenancy Agreement or a Periodic Agreement.

A fixed term residential tenancy is an agreement between a landlord and a tenant for a specific period of time, usually for six months or one year.

A periodic agreement or tenancy is for a recurring period without a fixed term.

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 and once signed provide the tenant with a copy within 14 days
▪	the tenant must be provided with a copy of the Renting in Tasmania booklet. You can download this from the Consumer Affairs and Fair Trading website.
▪	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

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 inventory, or condition report, detailing the contents and condition of the property should also be signed by both parties.

The landlord is responsible for any costs involved in the preparation of the rental agreement.

Security deposits / rental bonds

A security deposit or bond can be requested from the tenant to cover any damages or breakages.

The maximum amount that can be requested is 4 weeks rent and the landlord must supply the tenant with a receipt. The receipt must state the tenant’s name, amount and date paid, the address of the property and the landlord’s full name and address.

The bond is paid directly to the landlord or agent however the law is expected to change in 2009 regarding how these bonds are held. A Rental Deposit Authority will be introduced who will be responsible for holding all residential rental bonds in trust for private landlords and tenants. The tenant will be responsible for lodging their bond at a Service Tasmanian Shop or with their real estate company, who must then lodge it with the Rental Deposit Authority within 3 working days. It will become illegal for landlords to receive the bond directly.

The main aim for this new system is to ensure a fast process of refund claims. If both parties agree as to how the bond is to be refunded then an application will be made to the Rental Deposit Authority who will issue the refund. If both parties cannot agree as to how the bond is to be repaid then the Rental Deposit Authority will have processes in place to try and resolve this. Alternatively they could also refer the matter to the Residential Tenancy Commissioner.

In the meantime the landlord or agent will hold the bond. Therefore at the end of the agreement the 2 parties should agree as to how this will be returned. If there is a dispute regarding the refund of a security deposit then the tenant can make an application to the Residential Tenancy Commissioner to have the dispute resolved. Application forms can be downloaded from the Residential Tenancy Commissioner section of the Consumer Affairs and Fair Trading website.

In addition to requesting a bond the landlord can also request a payment of rent in advance of 1 months rent.

Landlord Responsibilities

During the tenancy the landlord is required to:

▪	provide and maintain the property in a reasonable state of repair and cleanliness
▪	maintain all locks or security devices to ensure the property is secure
▪	allow the tenant quiet enjoyment of the property
▪	provide receipts for any moneys received from the tenant
▪	keep records of all rent payments
▪	pay any council taxes and rates

An increase of the rent can only occur if specified in the agreement. The agreement must 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. 60 days notice must be given.

Tenant Responsibilities

During the tenancy the tenant is required to:

▪	keep the property reasonably clean
▪	pay the rent on time
▪	notify the landlord or agent of any problems or damages within 7 days
▪	return the property to the same standard except for reasonable wear and tear

They should also not:

▪	use the premises for any illegal purpose
▪	cause or allow nuisance
▪	disrupt their neighbours
▪	not fix anything to the premises or carry out any renovation, alteration or addition without the landlord’s written consent.
▪	intentionally or negligently cause or allow any damage to the property

Urgent repairs during a tenancy

The tenant must notify the landlord within 7 days if there are any repairs required, ideally in writing so there is evidence that the landlord has been notified however this is not required by law. The landlord must then be given 28 days to carry out these repairs. If the landlord fails to do so, the tenant can make an application to the Magistrates Court of Tasmania for a decision to be made. If the tenant has a fixed term agreement he can choose to terminate the agreement by giving the landlord a “Notice to terminate”. 14 days notice must be given.

If the repairs are urgent then the landlord must make these repairs as soon as possible.

Urgent repairs are repairs that are required to an essential service. These include:

▪	water
▪	electricity
▪	heating
▪	sewerage
▪	a hot water service
▪	removal of waste water from kitchens, bathrooms and laundries
▪	a cooking stove

If the landlord cannot be contacted or fails to carry out these repairs or refuses to do so then the tenant can have the work done by the landlords nominated repairer (if one is stated in the agreement) or a licensed tradesperson. The tenant should obtain a written report from the tradesperson stating the apparent cause of the problem and how it has been rectified. The tenant will need to pay the tradesperson but the landlord is required to reimburse the tenant within 14 days. If the landlord fails to do so the tenant can make an application to the Magistrates Court of Tasmania for a decision to be made. If the nominated repairer carried out the repairs then the landlord is responsible for paying them directly. The tenant cannot withhold the cost from the rent payment.

If the tenant, or a guest of a tenant, has caused the damage then the tenant is responsible for the cost.

Locks for the property may only be changed providing that the other party has consented. 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 that the property remains secure.


Accessing the property during a tenancy

The landlord or agent can inspect the property in the first month of the tenancy and then every 3 months. 24 hours must be given.

The landlord can enter the property at any time and without the tenant’s permission if it is reasonably believed that:

▪	the property is damaged
▪	the property has been abandoned
▪	the tenant is injured or ill and so is unable to give permission
▪	there is a risk to the tenant or another person in the property
▪	denial of immediate access is likely to result in damage to the property

If the landlord and the tenant cannot agree on a mutual time when the landlord can visit the property the landlord can enter the property without permission between the hours of 8am and 6pm and by giving at least 24 hours notice for the following reasons:

▪	to carry out routine inspections
▪	to meet commitments under the agreement
▪	to ensure repairs have been carried out
▪	if it is reasonably suspected that the tenant has not complied with the agreement

If the property is to be sold or re-let then the landlord and tenant should agree on a mutual time when the landlord can show the property to prospective buyers or new tenants. If a tenant cannot agree on a time and the landlord wishes to show the property to a prospective new tenant then the landlord can access the property without permission if notice to vacate has already been served on the existing tenant or the agreement is a fixed term agreement with less than 28 days to go before it expires. In this case, or in the case of showing the property to a potential buyer, the landlord can only enter the property:

▪	once a day
▪	on no more than 5 days in a week
▪	only between the hours of 8am and 6pm; and
▪	only when 48 hours written notice has been given

Ending a tenancy

A fixed term agreement is for a certain period of time and the tenant should continue to stay in the property paying rent until the agreement expires. However circumstances can prevent this from happening. A landlord or tenant may breach the agreement or personal circumstances may mean that the agreement needs to end earlier. Whatever the reason there are procedures to follow when giving notice.

Notice by landlord

Both parties can agree to end the tenancy early however if the landlord wants the tenant to vacate for another reason he must serve the correct notice.

A Notice to Vacate can be given if the tenant has breached the terms of the agreement, caused a substantial nuisance or less than 28 days has elapsed since the agreement expired. 14 days notice must be given.

28 days notice must be given if the fixed term agreement is due to expire within 28 days of serving the notice to vacate.

If the property is for no fixed period and the property is to be sold, renovated or is to be used for another purpose then 28 days notice must be given.

If the property is to be sold by a lending institution to recover monies owed to the institution by the owner then 28 days notice must also be given.

If a tenant fails to move out of the property on or before the date stated on the notice, then the landlord must apply to the Magistrates Court for an order of possession with 28 days.

It is important that the landlord serves the correct notice period. The local Magistrates Court can advise on this.

Notice by tenant

In the event that the tenant is on a fixed term agreement and the landlord has breached the agreement, such as failing to carry out repairs within the timescale, then the tenant may give 14 days notice to the landlord to terminate the tenancy.

If the tenant leaves before the end of a fixed term period then the landlord may claim for loss of rent until the property is re-let. The tenant may also be responsible for additional advertising costs involved in re-letting the property. The landlord should take reasonable steps to re-let the property as soon as possible.

A tenant is not required to give notice of termination if the fixed term period has expired.

If the agreement is of no fixed term then the tenant can vacate by giving 14 days notice.

Either party can apply to the Magistrates Court to terminate an agreement if they reasonable believe the other party is likely to cause damage to the property or neighbouring properties or cause personal injury to the other party or to any person in neighbouring properties.

Termination by the Magistrates Court

The local Magistrates Court will deal with any disputes relating to the termination of tenancies.

Either party can make an application to the court for a termination. A hearing will then take place where each party can provide evidence. The court will then make any orders and explain why those orders were made. These orders must be obeyed.

Application forms and further information can be obtained from the Magistrates Court of Tasmanial website.

Eviction

It is illegal for a landlord to force a tenant out of the property without a court order. The landlord must seek a court order to end the tenancy and take possession of the property.

This is a brief guide to Tenancy Law in Tasmania. For a full copy of the Residential Tenancies Act 1997 (RTA) please click here.