31 Jul 2024There is mould creeping up the walls of the property you are renting. The kitchen ceiling is dripping. Loungeroom floorboards are broken. The bedroom window is smashed. The garden fence is falling apart. The toilet won’t flush and the shower is leaking. What are your tenant rights to get things fixed in the property you rent?
Tenant rights regarding rental increases
What does the law say about responsibilities of property owners to tenants?
Landlords in Canberra can’t increase rents by more than 10 per cent above CPI without justification. (Please see Rent increases, ACAT.)
While there have been political discussions around capping rental increases in NSW, no such measure has been implemented to date. There are protections for tenants and obligations for property owners under existing NSW legislation – the Residential Tenancies Act 2010 and Residential Tenancies Regulation 2019.
For ongoing leases or fixed term leases of two years or more, rent can only be increased once in a 12-month period, after 60 days’ written notice has been given. (Please see Tenants and rent increases, NSW Government.)
For leases of less than two years, rent cannot be increased without an agreement at the start of the lease. The agreement must set out the amount of the increase or detail how the increase will be calculated.
Tenant rights and excessive rent increases
The law does not allow landlords to justify an increase with unclear terms such as “in line with the market” or “by the rate of inflation.” A landlord does not need to give any notice and the increase can start immediately. A tenant can give 21 days’ notice and vacate the property before the rent increase starts.
If a tenant believes a rent increase is excessive, they can challenge it at the NSW Civil and Administrative Tribunal within 30 days of receiving the notice. It would be worth getting legal advice before going to the tribunal, as the tenant needs to prove the increase is excessive.
They could cite comparable rents for similar properties in the area, the state of repair and amenities in the property and the landlord’s expenses. The tribunal has the power to set rent for the next 12 months.
Tenant rights if property not “fit for habitation”
Regarding repairs, since 2020 the law has included seven minimum standards to be met for the property to be considered “fit for habitation”. (Please see Changes to the residential tenancy laws, NSW Government Fair Trading.)
This means the state of the property should be commensurate with the property’s age and the amount of rent. Tenants must keep the property in “reasonable” cleanliness and are responsible for minor maintenance, such as changing light bulbs and gardening.
Tenants should notify landlords of urgent repairs, such as burst water pipes, broken toilets, gas leaks or electrical faults. If the landlord fails to act quickly, tenants can arrange urgent repairs themselves and landlords must pay the tenant back – in some cases up to $1000 – as long as they followed certain steps, such as using licensed tradesmen and obtaining receipts.
With problems such as mould or leaks, a landlord might argue the tenant was responsible. There is a free complaint service at NSW Fair Trading which can order landlords to carry out repairs and maintenance.
But tenants must keep paying their rent, no matter how difficult relations with the landlord might be. If you fail to pay your rent, you could lose all protections under the law.
For more information please see Illegal building works – the horror story edition.
