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Rights & Obligations of Tenants in New South Wales

Summary

The Relevant Legislation

The legislation which covers written and partly oral rental agreements in NSW is the Residential Tenancies Act 1987. The Act came into operation in 1989 and outlines the legal rights and responsibilities of the landlord and tenant for residential rental agreements. A copy of this Act may be obtained at www.legislation.nsw.gov.au.

Residential Tenancy Agreement

A residential tenancy agreement – or rental agreement – is the contract which governs the relationship between the tenant and the landlord. The Residential Tenancies Regulations 1995 contains a standard form which is to be used by the landlord or agent to create the rental agreement.

The Condition Report

The Condition Report is part of the formal rental agreement which details the condition of the premises before the tenant moves into the premises. It is essential that the condition of the premises be accurately described in the report in order to avoid having to pay for damage which may have been pre-existing at the conclusion of the tenancy.

Reservation Fee

A potential tenant may give a landlord a reservation fee in order to ensure that no one else is given the property whilst the tenant’s application is being determined. This fee cannot be greater than one week’s rent and does not guarantee that the applicant will get the property. This fee is generally not refundable.

Bond

A bond is an amount of money paid in advance of moving in, as a form of security for the landlord for any breach of agreement of damage to the premises, which may be caused by the tenant. The money is payable to an independent body, and refundable upon on the termination of the tenancy.

Rent

Rent is the amount of money that a tenant pays for exclusive use of the premises, which the landlord may require the tenant to pay in advance. The landlord must ensure they keep a record of all rent paid, and issue a receipt where necessary.

Where a landlord unreasonably increases rent, a tenant may be able to take the matter to the Consumer Trade and Tenancy Tribunal for review.

Landlord’s Rights and Obligations

The landlord is responsible for paying all rates and taxes on the land, unless otherwise agreed. The landlord is entitled to access the property, however, sufficient notice must be given to the tenant before the property is accessed.

Tenant’s Rights and Obligations

A tenant has the right to peaceful enjoyment of the property, but is also responsible for ensuring that the property is used appropriately and not damaged.

Obligation of Tenant and Landlord for Cleanliness and Repairs

Both the tenant and landlord must ensure that the premises are kept in a reasonable state of cleanliness, which is fit for habitation. The landlord must fix all repairs, and compensate the tenant where they have had to pay for urgent repairs.

Addition to Premises and Alternation of Locks and Security Devices

A rental premises cannot be altered by the tenant without permission from the landlord. This limitation applies to locks and security devices, which may only be added without permission in an emergency. Any damage caused by an alternation or addition must be paid for by the tenant.

Right to Assign or Sublet

Under most residential rental agreements, a tenant can allow another person who is not on the lease to also live in the premises, or take over paying the lease, with the permission of the landlord. The person to whom the sublease is given, the subleasee, is subject to the same obligations as a tenant, but does not gain any rights enforceable against the landlord.

Ending a Residential Rental Agreement

A rental agreement may be terminated in several ways. Notice may be given by either the landlord or tenant once the original term of the lease has expired. However, a rental agreement may also be terminated where the agreement is breached, the property is sold or the tribunal makes an order for the termination of the lease.

Taking a Dispute to the Consumer and Tenancy Tribunal

Either a tenant or a landlord may take a dispute before the Consumer Trade and Tenancy Tribunal (CTTT) where the dispute relates to an issue covered by the rental agreement. The CTTT encourages parties to conciliate, but where that fails, the dispute will proceed to a hearing where the CTTT will determine the outcome of the dispute.

We recommend that you download a comprehensive overview of the "Rights and Obligations as a Tenant" document and read it thoroughly. If you have any queries, please refer to the links contained in the document, or seek assistance from staff.