Residential Tenancy Rental Agreements Australian Capital Territory
Act Residential Tenancies are subject to and governed by the Residential Tenancies Act 1997. A number of amendments have been made since the act came into force on 26th May 1998, these include the Residential Tenancies Amendment Act 2004 and the Residential Tenancies Amendment Act 2006.
The act applies to both verbal and written agreements. It covers all people in residential tenancies where the property owner has entered into an agreement with one or more persons to occupy the premises in exchange for rent. The act also recognises that an agreement has been entered into if the property is either a house, a unit, a flat or a room, or the the tenant has a right to occupy the property for use as a home.
One should be aware that the residential tenancies act does not apply to all tenancies. For example the act does not apply to people who live in a retirement village, a nursing home or a hostel for disabled or elderly persons.
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. Agreements made where the tenant has a controlling interest in a company that owns the property are also exempt.
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 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. Copies of the booklet are freely available from the Australian Capital Territory Office of Fair Trading.
The tenant must be given time to read and understand the terms of the tenancy agreement and the condition report before being asked to sign it. They are also entitled to seek appropriate legal advice if necessary.
The Tenancy Agreement
The lease or residential tenancy agreement is a binding contract between the landlord and the tenant. The residential tenancy agreement is made up in two parts, the first part defines the rights and obligations of the parties as prescribed under the act and the second part is the property condition report. The landlord or the Landlords agent must give the tenant a signed copy of the tenancy agreement within 21 days of the agreement being executed by the parties.
Condition Report
At the beginning of the tenancy the landlord fills out and signs 3 copies of the condition report and gives two copies to the tenant. The tenant indicates agreement or disagreement with the condition suggested by the landlord or landlord’s agent by placing a tick or a comment in the correct space. If they believe the report does not represent the true condition of the premises, this is the time to sat so. The tenant must return one signed copy of the completed condition report to the landlord or landlord’s agent within (14) days after the tenant receives the report and keeps the second copy.
Bond
If the Landlord requires that the tenant pay a bond, the bond payable cannot be more than 4 weeks rent and the landlord may only accept or require one bond in relation to a residential tenancy agreement. Private landlords (not agents) are required to lodge the 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 pay a maximum of one months rent in advance from the first day of the tenancy. This is negotiale and at the landlords option.
Terminating a Tenancy agreement
Terminating tenancy agreements must be done in a fashion compliant 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 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 your local newsagent in printed format or 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 see fit.
For more information consult the Residential Tenancies Act 1997or contact the Office of Fair Trading