RESIDENTIAL TENANCIES ACT 1987
The aim of the Residential Tenancies Act 1987 (the Act) is to regulate the relationship between owners and tenants under residential tenancy agreements.
Like most Acts, the Residential Tenancies Act 1987 is a complex one and, without proper knowledge, can easily be breached. Not knowing where to access reliable information on how to comply with the Act, private landlords often turn to friends and even tenantsfor advice. As a result, they expose themselves to penalties and disciplinary action in the courts.
Note:
Certain provisions of the Act may be varied or excluded where the tenancy agreement is in writing and signed by both the owner and the tenant. The specific provisions of the Act which may be excluded or varied are contained in Schedule 2 - Information for Tenants, which you should supply to any prospective tenant.
FINES, PITFALLS & COMMON MISTAKES
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Here is a selection of the common mistakes and pitfalls some private landlords often make, and the resulting fines imposed by the Act. Without proper knowledge of the regulations, breaches of the Act can add up to over $40,000 in fines.
To avoid these costly mistakes, join privatelandlords.com.au today and for less than $1 a day (incl. GST and before tax) gain access to all the information you need to make informed decisions and comply with the Act.
Common Mistakes & Pitfalls
Preparing a Lease
Preparing a residential tenancy agreement in a way that prevents the Residential Tenancies Act 1987 being enforced.
Fine: Up to $10,000
Breach of: s.82
Court Orders
Failure to comply with a court order under Section 15(2) of the Act & other than an order for payment.
Fine: $10,000
Breach of: s.16(1)
Summons
Failure to comply with the requirements of a summons.
Fine: $10,000
Breach of: s.19(2)
Receiving payment
Asking for or receiving a payment from a tenant (or prospective tenant) for entering into, extending or renewing a residential tenancy agreement, other than rent and a security bond.
Fine: $5,000
Breach of: s.27(1)
Receiving rent in advance
Requiring payment of more than 2 weeks rent before or during the first 2 weeks of a residential tenancy agreement.
Fine: $5,000
Breach of: s.28(1)
Bond collection
Asking for or receiving more than one security bond in relation to a residential tenancy agreement.
Fine: $5,000
Breach of: s.29(1)(a)
Requiring too much Bond
Asking for or receiving an amount as a security bond which is more than 4 weeks rent (unless the weekly rent is more than the ‘prescribed amount’, which is currently $1,200/week OR you lived in the premises as your principal private residence for at least 3 months immediately before the entering into of the tenancy agreement).
Fine: $5,000
Breach of: s.29(1)(b)(i)
Pet Bonds
Where the tenant is permitted to keep any cat or dog on the premises, asking for or receiving an amount as a ‘Pet Bond’ which is more than the ‘prescribed amount’, (which is currently $260), to meet the cost of any fumigation of the premises that may be required on the termination of the tenancy. This amount is a ‘total’ amount and is not an amount ‘per pet’ and can only be used to fumigate the premises at the end of the tenancy agreement, otherwise it must be refunded.
Fine: $5,000
Breach of: s.29(1)(b)(ii)
Security Bond
- record of payment: If the owner receives a security bond in relation to a tenancy agreement and fails to:
(1) issue a receipt to the person paying the bond, containing all the information as specified by the Act;
(2) pay the bond over to the bond administrator or an authorised financial institution within the prescribed timeframe;
(3) keep a record of the payment of the bond, containing all the information as specified by the Act.
Fine: $20,000
Breach of: s.29(4)(a) s.29(4)(b) s.29(4)(c)
Security Bond
- false record of payment: Creating a false record of the payment of the bond.
Fine: $5,000
Breach of: s.29(6)
Receiving Rent Payments
issuing a receipt: Failing to provide a receipt to the person paying the rent, containing all the information as specified by the Act, within 3 days of receiving the rent (unless the tenant pays your rent direct into an authorised financial institution, in which case this requirement does not apply).
Fine: $5,000
Breach of: s.33(1)
Maintaining Rent records
Failing to keep a record showing the rent received.
Fine: $5,000
Breach of: s.34(1)
False rent records
Creating a false record of the payment of the rent.
Fine: $5,000
Breach of: s.34(2)
Post-dated rent
Demanding payment of rent via a post-dated cheque, etc.
Fine: $5,000
Breach of: s.35
Changing locks
Altering, removing, adding or changing locks without reasonable excuse and without the agreement of the tenant.
Fine: Up to $20,000
Breach of: s.59(F)
Notifying tenant of owner contact details
Failing to notify the tenant in writing, at the time of entering into the tenancy agreement, of the full name and address of the owner and any person having superior title to that of the owner.
Fine: $5,000
Breach of: s.51(1)(a)
Notifying tenant of body corporate details
Where the owner or such person is a body corporate, failing to notify the tenant in writing, at the time of entering into the tenancy agreement, the full name and business address of the secretary of the body corporate.
Fine: $5,000
Breach of: s.51(1)(b)
Notifying tenant of new owner contact details
For new owners of a property that has a tenancy agreement in place, failing to notify the tenant in writing, within 14 days of ownership, of the full name and address of the new owner.
Fine: $5,000
Breach of: s.51(3)(a)
Notifying tenant of body corporate details
Where new owners of a property that has a tenancy agreement in place are a body corporate, failing to notify the tenant in writing, within 14 days of ownership, of the full name and business address of the secretary of the new body corporate.
Fine: $5,000
Breach of: s.51(3)(b)
Notifying tenant of any change in owner contact details
Failing to notify the tenant in writing, within 14 days of any change of the owner’s name or address, of the changed name or address.
Fine: $5,000
Breach of: s.51(4)
Copy of tenancy agreement
Failing to provide the tenant with a copy of the tenancy agreement at the time which the tenant signs it.
Fine: $5,000
Breach of: s.54(1)(a)
Copy of fully executed tenancy agreement
Failing to deliver to the tenant a copy of the fully executed tenancy agreement within 14 days of the tenant signing it.
Fine: $5,000
Breach of: s.54(1)(b)
Discrimination against tenants with children
Refusing to grant a tenancy to any person on the ground that it is intended that a child should live in the premises.
Fine: $5,000
Breach of: s. 56(1)
Stating your intention
– by advertisement or otherwise - not to grant a tenancy to any person if it is intended that that a child should live in the premises. unless the premises are the owner’s principal place of residence, or the owner’s
principal place of residence is next door to, or adjoining the premises which the tenancy agreement is the subject of.
Fine: $5,000
Breach of: s.56(2)(b)
Notice of Termination by owner who has entered into contract of sale
Giving a Notice of Termination to a tenant based on this, but that falsely states the grounds of the notice.
Fine: $10,000
Breach of: s.63(3)
Entering a premises to recover possession
Entering any part of a premises – whether a tenant still has possession of the premises under a tenancy agreement or is a former tenant who has continued to live in the premises after termination of a tenancy agreement - without a Court
Order, for the purpose of recovering possession of any part of the premises.
Fine: $20,000
Breach of: s.80
Tenancy Agreements that set out to defeat, evade or prevent the operation of the Act
Entering into a residential tenancy agreement with the intention of directly or indirectly defeating, evading or preventing the operation of the Act - unless you have excluded, modified or restricted certain parts of that residential tenancy
agreement in accordance with those exclusions, modifications or restrictions permitted by or under any relevant provisions of the Act and that residential tenancy agreement is in writing and signed by the owner and the tenant.
Fine: $10,000
Breach of: s.82(2)