Living in a rented property means that a tenant (renter) enters a trading transaction with a landlord. As in all trading situations both parties have rights and responsibilities (obligations) to make their partnership work successfully.

Landlord’s general obligations

Under the law, landlords must ensure that:

• the rented property is reasonably clean and fit to live in when a tenant moves in
• the rented premises are maintained in a reasonable condition, considering the age of the property, the rent paid and the prospective life of the property
• the required smoke alarm/s is installed.

Tenant’s obligations

Under the law, tenants must:

• keep the premises reasonably clean
• tell the landlord or agent about any damage to the premises as soon as possible
• not deliberately or carelessly damage the premises
• not add or remove any fixtures or fittings
• not do any renovations, alterations or additions without the landlord's written permission
• pay rent as per the tenancy agreement
• not interfere with the privacy, peace or comfort of neighbours
• leave the property in a similar condition as it was at the start of the tenancy except for fair wear and tear.

Fixed-term agreement

The fixed-term agreement is a defined period of the tenancy which is written into the lease.This is usually 6 or 12 months but the parties can agree to have a tenancy agreement for any length of time.

When the fixed-term period ends the tenancy agreement does not end unless it is terminated by the tenant or the landlord.

Rent increases

If rent is increased, this usually happens after the fixed-term period of the agreement has expired. Before a landlord (other than the Department of Housing) can increase the rent, the tenant must be given at least 60 days notice in writing. The notice must show the amount of the increased rent and the date from which it is to be paid.

For rent to be increased during the fixed-term period of the agreement, details of this would need to be written into the agreement. An additional term would need to state the amount of the increase (or the method of calculating the increase) and the day from which it is to be paid. Written notice of 60 days must still be given. If the notice is posted, at least 4 working days must be added to the amount of the notice to allow time for the notice to be delivered.

Challenging an increase

Tenants have options if they think a proposed rent increase is too high.

Negotiate

The landlord may agree to reduce the amount of the increase or withdraw it altogether. They may be persuaded by evidence of market rents in the area or improvements the tenant has made to the property. The tenant should carefully explain the reasons why they believe the increase is too high in a letter to the landlord. If the landlord agrees to lower the increase, this should be put in writing. Another 60 days notice is not necessary and the lower increase becomes due from the same date the original increase was payable.

Apply to the Consumer, Trader and Tenancy Tribunal (CTTT)

The role of the CTTT is to quickly and effectively resolve disputes between tenants, landlords, traders and consumers.

Tenants can apply to the CTTT to have the proposed increase reduced or withdrawn if they believe that the increase is too high. Department of Housing tenants receiving a rent rebate cannot do this.

Applications to the CTTT must be made within 30 days of receiving the rent increase notice. Tenants have to prove that the increase is excessive.

Rent arrears

If the tenant gets behind in their rent, they should contact their landlord/agent and explain the situation. They may be able to come to an agreement about paying off the arrears over time. Any agreement should be confirmed in writing and notes made of any conversations with the landlord. This may be helpful if the matter has to go to the CTTT at a later date.

The landlord can give the tenant a notice of termination if they are more than 14 days behind in their rent. The termination notice must give the tenant no less than 14 days to leave. If the notice is mailed, the landlord/agent must allow 4 working days for postage on top of the 14 days. The tenant should check the dates on the notice carefully. If the rent is paid within the 4 days postage period, the notice may be invalid.

If the tenant does not comply with the notice, the landlord/agent may apply to the CTTT for a hearing to decide whether the tenant has to leave.

Tenants are entitled to stay in the property until the CTTT orders the tenancy to end and gives a date to leave. The landlord must follow this process. It is illegal for the landlord to evict the tenant without an order from the CTTT.

Getting repairs done

Under the Residential Tenancies Act 1987, repairs are classified as either ‘urgent’ or ‘non-urgent’. Residential premises must always be ‘fit to live in’. Landlords are obliged to organise any urgent repairs, as soon as reasonably possible, after having been notified by the tenant of the fault or damage.

Under no circumstances should a tenant stop paying rent in order to get repairs done.

Urgent repairs

Urgent repairs are for any work needed to fix:

• a burst water service
• a blocked or broken lavatory system
• a serious roof leak
• a gas leak
• a dangerous electrical fault
• flooding or serious flood damage
• serious storm or fire damage
• a failure or breakdown of the gas, electricity or water supply to the property
• a failure or breakdown of any essential service at the property for hot water, cooking, heating or laundering
• any fault or damage that causes the property to be unsafe or not secure.

The landlord/agent must first be given a reasonable opportunity to arrange the repair work. If they cannot be contacted, the tenant should contact the tradesperson nominated in the tenancy agreement. If no tradesperson is noted in the agreement, the tenant can contact any qualified tradesperson and can spend up to $1,000 on urgent repairs. The tenant must be reimbursed within 14 days after they submit a receipt to the landlord/agent.

Non-urgent repairs

The following steps are recommended for repairs or other work that needs to be carried out:

1. The tenant should contact the landlord/agent and explain the problem and what needs to be done. Record the date of all conversations and a summary of what was said and keep copies of all correspondence (this will be important if the problem is not easily resolved).
2. If the landlord/agent agrees to the repair or work, the tenant should write a letter confirming what was agreed to.
3. If the landlord/agent says no to the request, the tenant should keep paying rent and carefully consider how important the repair or work is.

4. If the tenant considers the repair or work important enough, they should write to the landlord/agent outlining what needs to be done, and why, and give a reasonable time limit for the work to be completed.
5. If the work is not done within this time, the tenant should write a final letter to the landlord/agent explaining that they intend to seek help from a Tenants Advice Service or apply to the CTTT.
6. The tenant can contact a Tenants Advice Service for assistance.
7. The tenant can apply to the CTTT for an order that the landlord carries out the work to maintain the premises in a reasonable condition. The CTTT can grant a reduction in rent, compensation or allow the rent to be paid to the CTTT until the work has been completed.

Locks and security

The landlord is required to provide and maintain locks or other security devices to ensure that the rental property is reasonably secure.

What is reasonably secure will vary in different situations. The potential risk (likelihood of the property being broken into) will have a bearing on the type and standard of locks needed to make a property reasonably secure and will depend largely on the area in which the property is located. But even then, the same standard cannot be applied to all residential properties within the area.

The landlord does not have to make the property so secure that the property can never be broken into. The requirements of insurance companies are not the sole test of what is reasonable security, but are merely one factor to be considered in deciding an appropriate level of security for the property.

Neither the tenant nor the landlord can change or remove locks and security devices without the permission of the other except:

• in an emergency
• with a reasonable excuse
• with an order from the CTTT.

If a tenant wishes to add locks or other security devices to make the property more than reasonably secure, they must obtain the landlord’s prior written consent, pay all the associated costs and give the landlord copies of the keys.

Fixtures and fittings

The landlord has the right to refuse any requests by a tenant to add fixtures or otherwise change the look of the property. Fixtures added by tenants cannot be removed without the landlord’s permission. If the landlord refuses to allow the fixture to be removed, the tenant must be compensated for the value of the fixture (depreciation should be considered). If removing a fixture causes damage, the tenant is responsible for repairing the damage or compensating the landlord.

Privacy and access

It is a term of every tenancy agreement that all tenants have a basic right to privacy and quiet enjoyment of the property. This right must be respected by landlords/agents. The landlord must make sure that they, or anybody on their behalf, do not interrupt these basic rights.

The landlord, agent or any person authorised by the landlord may enter the property only in certain circumstances (the table on the following page lists these circumstances).

Can a tenant refuse access?

A tenant does not have the right to refuse access to the landlord or someone with written permission from the landlord if they have been given proper notice. However, there is nothing to stop the tenant from negotiating a more acceptable arrangement. If the tenant is not given proper notice they have the right to refuse access.

* The Act does not define reasonable notice. This should be negotiated between the parties.

The landlord/agent cannot enter the premises:

• on a Sunday or a public holiday – unless the tenant agrees
• before 8.00 am or after 8.00 pm – unless the tenant agrees.

If anyone besides the landlord/agent wants to enter the property, they must have written permission from the landlord/agent and show it to the tenant.

Changes to shared tenancies

In a shared tenancy there may be more than one householder’s name listed on the rental bond. If one or more people listed on the rental bond changes and the departing tenant has been compensated for their share of the bond, a ‘Change of Shared Tenancy Agreement’ form should be completed and lodged with Fair Trading. This is to ensure that bond records are up to date. To use this form, one original household member must still be living in the property. The form should be signed by:

• the remaining tenants
• the person(s) leaving
• the person(s) moving in
• the landlord/agent.

View, download or order a copy of the Change of Shared Tenancy Agreement form from the Fair Trading Website or call 13 32 20.

Tenants advice services  

Tenants Advice and Advocacy Services are independent community-based organisations that provide tenancy advice, information and advocacy for both private and public tenants.

They are located throughout metropolitan Sydney and regional NSW. There are also specialist Aboriginal tenants services and a service for seniors.

The contact details for tenants advice services are listed in the Renting guide, the Fair Trading publication tenants are required to receive from their landlord/agent at the start of a tenancy.

To view or print a copy of the Renting guide visit the Fair Trading website or call 13 32 20.