Saturday, 6 May 2023

What are your rights as a renter in Australia?

Many Australian renters are finding it difficult to find and keep a roof over their head amid the nation’s rental crisis, making it increasingly important for them to know their rights.

Rental markets across the country have been recording ultra-low vacancy rates and rapidly rising rents – even for substandard homes – for months.

While a competitive market can make tenants wary of rocking the boat with their landlord, there are some protections in place to help those facing excessive rent increases or living in maintained properties.

Rules governing rent increases have been a key topic for tenants, said Renters and Housing Union spokesperson Monty Hill.

“A lot of people don’t know the rules … or understand the grey areas,” Hill said. “They’re not understanding that they can challenge these things and there is a process for that, outside of talking to the property manager or landlord.”

Maintenance and minimum standards of housing are also areas of confusion, particularly when determining what landlords are responsible for, and what fell to tenants, Hill said.

“Especially around mould with all the rain,” Hill said. “It can be ambiguous as to whose fault it is and who is responsible for the clean-up.”

Some states have better protections for renters than others. The ACT, for example, has come closest to capping rent increases, which are tied to the rate of inflation for Canberra rentals, plus 10 per cent. Meanwhile, in NSW, tenants now can lodge a complaint through Fair Trading, instead of going to the state’s tribunal, if a landlord does not respond to a maintenance or repair request.

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Renters face a competitive market. Photo: Chris Hopkins

Here is a snapshot of tenants’ rights in every state and territory.

NSW

Rent increases:

Rent can only be increased once in a 12-month period after a minimum 60 days written notice during an ongoing lease or fixed-term lease of two years or more.

Rent cannot be increased during fixed-term leases of less than two years without an agreement at the start that sets out the amount of the increase or method of calculating it. Unclear statements, such as “in line with the market” or “by the rate of inflation” cannot be used.

If a tenant believes a rent increase is excessive, they can challenge it at the tribunal within 30 days of receiving the notice.

Minimum standards:

From 2020, residential tenancy laws changed to ensure rental properties are in a reasonable state of cleanliness and “fit for habitation”. Seven minimum standards were introduced. Properties must:

  • Be structurally sound.
  • Have adequate natural or artificial lighting in each room, except storage rooms or garages.
  • Have adequate ventilation.
  • Be supplied with electricity or gas and have enough sockets for lighting, heating and appliances.
  • Have adequate plumbing and drainage.
  • Have a water connection that can supply hot and cold water for drinking, washing and cleaning.
  • Have bathroom facilities, including a toilet and washing facilities that allow users’ privacy.

Maintenance:

While tenants are responsible for minor maintenance, such as replacing light bulbs and cleaning windows, landlords are responsible for more major maintenance and urgent repairs. That can include a burst water service, serious roof leak, broken toilet, electrical fault and gas leaks.

For issues like mould, landlords are responsible if it’s from a build-up of moisture due to issues like a defective window, or lack of adequate ventilation options. Tenants are responsible if it is a result of never opening windows or using ventilation fans in the bathroom.

Tenants can now lodge a complaint with NSW Fair Trading if a landlord fails to respond to a maintenance or repairs request, instead of going to the tribunal.

Ending a tenancy:

A landlord must give 30 days written notice at the end of a fixed-term agreement, and 90 days notice for a periodic lease. However, shorter periods are allowed after a breach of the agreement. Tenants are required to give 14 days notice at the end of a fixed-term lease, and 21 days notice otherwise. No notice is required in cases of domestic violence. Break fees may apply when ending a fixed-term early. The maximum fee is four weeks rent, if less than 25 per cent of the agreement has expired.

Landlords do not need to provide a reason when evicting a tenant, but the new NSW Labor government has vowed to change this.

Victoria

Rent increases:

Rental increases are allowed every 12 months for those on a periodic rental agreement that started on or after mid-2019, and every six months for those on older agreements. There are no caps on the size of the increase, but 60 days’ notice is required.

Rental providers can only increase the rent during a fixed-term lease if the agreement says they can.

Tenants have the right to challenge increases and can ask Consumer Affairs Victoria (CAV) to investigate if they believe the increase is too high.

Minimum standards:

Rental properties must be structurally sound and meet minimum standards. They must have:

  • Functioning deadlatches on external doors, or locks that can be unlocked with a key from the outside, but unlocked without one from the inside, with some exceptions.
  • Working toilets and bathrooms with a reasonable supply of hot and cold water.
  • Kitchens with a dedicated food preparation and cooking area, a working sink and stove top, with at least two burners.
  • Blinds or window coverings in bedrooms and living areas and windows that lock.
  • A working fixed heater in the main living area.
  • Adequate ventilation and access to light.
  • Modern style electrical switchboards with circuit breakers and safety switches.

Maintenance:

Landlords are responsible for urgent and non-urgent repairs. Burst pipes, blocked toilets, serious roof leaks and any fault that makes a home unsafe or insecure, like mould, needs to be fixed immediately. Landlords may be responsible if the property has problems – like a broken window – that causes mould or damp. Tenants are responsible if they have not properly ventilated or cleaned a wet area like a bathroom.

Ending a tenancy:

Renters must give 28 days’ notice if they want to vacate, but there are exceptions where 14 days’ notice can be given. Those vacating before the end of a fixed agreement can face “lease break” costs.

Landlords must give 90 days’ notice before the end of most fixed-term agreements, but only 60 days’ notice for periodic tenancies – but a reason and evidence for it must be provided.

Queensland

Rent increases:

Rents for periodic leases can be increased every six months with two months’ written notice, but the Palaszczuk government announced in March that it would seek to limit rent increases to once per year. Rent cannot be increased during a fixed-term unless the amount, or how it will be worked out, is stated in the agreement.

Tenants can challenge a rent increase through dispute resolution at the Residential Tenancies Authority. If it is not resolved, tenants can go to the Queensland Civil and Administrative Tribunal.

Minimum standards:

New laws will be introduced in September to ensure rental properties are safe, secure and functional. Minimum standards include, but are not limited to, homes being weatherproof and structurally sound, having locks on external doors, curtains in bedrooms, adequate plumbing and drainage, and working bathrooms and kitchens.

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The rental shortage is putting pressure on tenants. Photo: Peter Rae

Maintenance:

The landlord is responsible for ensuring a property is fit to live in, but if damage is caused by the tenant or a friend, they may have to pay for the repairs. Mould issues are the responsibility of the landlord when it grows as a result of problems with the property like a leaky roof, but the responsibility of the tenant if they do not properly ventilate or clean wet areas like the bathroom.

Ending a tenancy:

A tenant must give at least 14 days’ notice, unless the property owner or manager has breached the agreement. Those breaking a fixed-term early may be asked to pay reasonable re-letting costs, advertising costs and compensation for lost rent.

Landlords cannot end a tenancy without grounds. Two months’ notice is typically required for both fixed and periodic leases, but there are exceptions. The end of a fixed-term agreement in itself can be considered a reason.

ACT

Rent increases:

The rent can only increase every 12 months for tenants on fixed or rolling leases, with eight weeks’ notice, and details of any rent increase need to have been included in fixed-term agreements.

Rent increases are limited, and must be tied to the Consumer Price Index. The most landlords can increase rent is by the rate of inflation for Canberra rentals, plus 10 per cent. For larger increases, which a tenant does not agree to, a landlord must apply to the tribunal.

Minimum standards:

Landlords must ensure their property is fit for habitation and in a reasonable state of repair at the beginning of the tenancy. A new minimum energy efficiency standard for ceiling insulation commenced on April 1, 2023, and landlords have a nine-month grace period to make the improvement. Beyond this, there are currently no other minimum standards.

Maintenance:

The landlord is responsible for maintaining the property, including urgent repairs on any fault or damage that makes the property unsafe or insecure, or is likely to cause injury. This includes damage that could result in mould. Tenants must notify the landlord about the need for urgent repairs as soon as practicable and are responsible for reasonable maintenance like replacing smoke alarms, light bulbs and standard upkeep of gardens.

Ending a tenancy:

Renters in a periodic tenancy or vacating after a fixed-term lease need to give their landlord at least three weeks’ notice, but there are exceptions where shorter notice can be given. Tenants who end a fixed lease early may have to pay a fee, but there are exemptions. Those with a break lease clause in the agreement could pay up to a maximum of six weeks’ rent, while others may have to pay rent until a new lease is found – but limits do apply.

Landlords can no longer issue “no grounds” evictions. From April 1, 2023, a tenancy can only be ended for a permitted reason, but there are still a wide range of grounds available to landlords. Notice periods vary from one to 26 weeks, depending on the grounds for termination.

Western Australia

Rent increases:

During a fixed-term tenancy, rents can only be increased if this was outlined in the tenancy agreement with the amount or method of calculation shown. An increase can take effect no sooner than six months after the start of the agreement or the date of the last increase. At the end of a fixed term, rent cannot be increased for the first 30 days of a new or periodic agreement.

Rent can be increased at six monthly intervals in an ongoing lease, with 60 days’ notice. If tenants believe the rent increase is too much, they can dispute it through a Magistrates Court within 30 days.

Minimum standards:

Landlords must ensure premises are in a reasonable state of repair. Minimum standards pertain to security and safety such as door locks, window locks, exterior lights, window fittings and anchors and smoke alarms.

Maintenance:

Obvious and urgent maintenance and repairs fall on the landlord as they must keep the home in a reasonable state of repair and comply with building, health and safety laws. Mould or mildew caused by faults in gutters or other fixtures, or inadequate ventilation, is the responsibility of the landlord. But where the tenant causes damage, they are responsible for arranging for maintenance or repairs.

Ending a tenancy:

For fixed-term tenancies coming to an end, the landlord must provide the tenant at least 30 days’ notice if they do not wish to renew. For a periodic tenancy, the landlord must give at least 30 days’ notice if they are selling the property or 60 days’ notice if they are ending the tenancy without reason.

Tenants must give 30 days’ notice if they are not extending a fixed-term tenancy, or 21 days’ notice to end a periodic tenancy.

South Australia

Rent increases:

Rents can only be increased once every 12 months with 60 days’ notice. There’s no limit to how much rent can be increased, but if tenants can prove increases are excessive, they can apply to the South Australian Civil and Administrative Tribunal. Rent increases during a fixed-term need to have been detailed at the outset of the agreement.

Minimum standards:

Rentals must meet minimum housing standards to provide a clean and safe home that is in good repair for tenants. These include, but are not limited to:

  • An adequate kitchen and bathroom.
  • Acceptable plumbing, gas or electrical services.
  • Adequate natural lighting or ventilation.

Maintenance:

Landlords and tenants share responsibility for maintenance. Landlords usually take care of tasks like replacing light globes and tap filters or extensive garden work like pruning fruit trees, while tenants are responsible for tasks like cleaning air conditioner filters and general gardening. Landlords are expected to carry out required repairs in a reasonable time frame. The home must also be free of significant mould.

Ending a tenancy:

For fixed-term tenancies coming to an end, the landlord must provide the tenant at least 30 days’ notice if they do not wish to renew. For a periodic tenancy, the landlord must give at least 30 days’ notice if they are selling the property or 60 days’ notice if they are ending the tenancy without reason.

Tenants must give 30 days’ notice if they are not extending a fixed-term tenancy, or 21 days’ notice to end a periodic tenancy.

South Australia

Rent increases:

Rents can only be increased once every 12 months with 60 days’ notice. There’s no limit to how much rent can be increased, but if tenants can prove increases are excessive, they can apply to the South Australian Civil and Administrative Tribunal. Rent increases during a fixed-term need to have been detailed at the outset of the agreement.

Minimum standards:

Rentals must meet minimum housing standards to provide a clean and safe home that is in good repair for tenants. These include, but are not limited to:

  • An adequate kitchen and bathroom.
  • Acceptable plumbing, gas or electrical services.
  • Adequate natural lighting or ventilation.

Maintenance:

Landlords and tenants share responsibility for maintenance. Landlords usually take care of tasks like replacing light globes and tap filters or extensive garden work like pruning fruit trees, while tenants are responsible for tasks like cleaning air conditioner filters and general gardening. Landlords are expected to carry out required repairs in a reasonable time frame. The home must also be free of significant mould.

Maintenance:

Landlords must ensure the property remains in the same condition as at the start of a tenancy, except for reasonable wear and tear. Maintenance and repairs not caused by the tenant must be covered by the landlord. A tenant must notify their landlord within seven days of noticing something that needs repair.

Ending a tenancy:

For a fixed-period lease, if a landlord does not wish to extend or renew the lease, they must give the tenant between 42 days and 60 days’ notice.

For a non-fixed term lease, a landlord needs to give 42 days’ notice that the property will be sold, transferred to another person, significantly renovated, no longer used as a rental property, or a family member of the landlord is moving in. A tenant must give the owner at least 14 days’ notice they are moving.

Northern Territory

Rent increases:

Rent can be increased once every six months with a minimum of 30 days’ written notice. Rent can only be increased during a fixed-term lease if, as in other states, it has been written into the agreement. A tenant can apply to the tribunal if they believe the increase is excessive.

Minimum standards:

Landlords must ensure their rental property is habitable, in a reasonable state of repair and meets all applicable health and safety requirements. They must also take reasonable steps to provide and maintain security measures such as locks.

Maintenance:

Landlords must ensure a rental is in a reasonable state of repair, allowing for wear and tear. Landlords are also responsible for emergency repairs such as burst water pipes, blocked or broken toilets, and failure or breakdown of an essential service.

Ending a tenancy:

At the end of a fixed-term agreement, if either the landlord or tenant wants to end the lease, they must give 14 days’ notice.

To end a periodic lease, the tenant must give at least 14 days’ notice. The landlord must give 42 days’ notice to end a periodic lease.

Article source: Queensland Property Investor

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