Residential Tenancy Rental Agreements Australian Capital Territory
ACT Residential Tenancies are subject to and governed by the Residential Tenancies Act 1997. The original act came into force on the 26th of May, 2998, but has been amended back in 2004 first, Residential Tenancies Amendment Act 2004, and then later in 2006, the Residential Tenancies Amendment Act 2006.
Both verbal and written agreements come under this act.The act covers all people in residential tenancies where the landlord has entered into an agreement with one or more persons to occupy the property in exchange for rent. The act also recognises that an agreement has been entered into if the property is a house, unit, flat or even room, or the tenant has a right to occupy the premises for residential use.
One should be aware that the Residential Tenancies Act does not apply to all tenancy situations. For example the act does not apply to retirement villages, nursing homes or a hostel for elderly or diabled people.
There are also situations where residential tenancy agreements are not covered by the Act. These include agreements made for holiday homes and those that have been made as part of the sale or purchase of a property.
There are other situations where residential tenancy agreements aren't covered by the Act. Agreements made where the tenant has a controlling interest in a company that owns the property are exempt. Also, holiday homes, and those agreements that have been made as part of the sale or purchase of the property.
Before the tenant moves into the rented premises or enters into an ACT Residential Tenancy Agreement, there are several documents that they must receive from the Landlord or the landlords agent. These include a written copy of the lease, a list of costs that they will need to pay when they do sign the lease and an information handbook called The Renting Book . This booklet is a guide to the rights and responsibilities of the tenant and those of the landlord. This booklet is available free from the ACT Office of Fair Trading.
The tenant cannot be asked to sign the agreement until they have had time to read and understand the terms of the tenacny agreement and the condition report. It is also highly encouraged that the tenant seek legal advice before signing any legal documentation.
The Tenancy Agreement
The residential agreement is a binding legal contract between the two parties (the landlord and the tenant). The agreement consist of two parts. The first is the rights and obligations of each party, as prescribed under the act. The second part if the property condition report. The Landlord, or Landlord's agrent must provide a signed copy of the agreement within three weeks (21 days) of the agreement being executed by the parties.
Condition Report
The landlord must fill out and sign three copies of the condition report, and two of which must be given to the tenant. The tenant has the option to agree, or disagree with the condition of the premises indicated on the document stated by the Landlord, or Landlord's agent. This is where the tenant can either agree, with a tick, or disagree with a cross or a comment on the document, if they do not agree with the true condition of the property. The tenant has a period of 14 days (two weeks) to return a signed copy of the contract to the Landlord or the Landlord's agent.
Bond
If the Landlord deems bond is necessary, the bond payable cannot be more then four weeks rent (one calender month). Also, the Landlord cannot accept more then one bond in relation to a residential agreement. Private Landlords, (non-agents) are required to lodge their bond with the Office of Rental Bonds with the prescribed Bond Lodgement Form within two (2) weeks.
Rent in Advance
The tenant may be required to pay one calender month's rent in advance. This is upto the Landlord's discretion, and may vary with each instance.
Terminating a Tenancy agreement
If the act is terminated, is must be done in compliance with the Residential tenancies act of 1997. It is most important that when a tenant or landlord or agent attempts to end the tenancy agreement that it is done in such a way that it is consistent and legal under the Act. There are three main ways to end a tenancy agreement, including:
• agreement of all parties involved to end the tenancy early, or
• a landlord or agent gives a ‘Notice to Vacate’ to the tenant, or
• a tenant gives notice to the landlord or agent that they intend to vacate.
• In some cases the Residential Tenancies Tribunal may make an order to terminate an agreement.
Residential Tenancy kits for The Australian Capital Territory are available from RP Emery and Associates as a downloadable MS word document. Unlike a hardcopy agreement the MS word document can be used time and again and it also allows a certain amount of flexibility to edit as you require.
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For more information consult the Residential Tenancies Act 1997or contact the Office of Fair Trading