What is the legislation governing residential tenancies in the Northern Territory?
The Residential Tenancies Act 1999 covers most residential tenancy agreements entered into after March 1, 2000. The act applies to private tenants who rent either directly from a landlord or through a real estate agent, boarders and lodgers if there are 3 or more in the premises, tenants in accommodation provided by an employer, caravans or mobile homes rented on private property, and public housing tenants who rent from Territory Housing (although some sections of the Act do not apply to these tenants).
What rental accommodations are NOT covered by the Act?
The Act does not cover people who rent holiday accommodation, boarders or lodgers where there are less than 3 residing in the premises, caravans or mobile homes that are in caravan parks, and emergency or charitable accommodation.
Is it necessary to have a written tenancy agreement under the Act?
Generally a tenancy agreement is in writing, however, if there is no written agreement, the prescribed agreement set out in the Residential Tenancies Regulations, Schedule 2, Regulation 10 applies.
What about a signed property condition report?
Within 3 days of the tenant taking possession of the premises, the landlord should provide 2 copies of a completed condition report to the tenant. If the landlord does not complete a condition report at the commencement of the tenancy and comply with Part 5 of the Act, the landlord will not be permitted to make a claim against the security deposit at the end of the tenancy for cleaning, damage or lost ancillary property. The condition report must be completed in the presence of the tenant, unless it is not practical to do so or the tenant does not show up at the agreed time. Within 5 business days of receiving the copies of the condition report, the tenant must either accept the report and sign and return 1 copy to the landlord, or mark any desired changes and return both copies to the landlord. The landlord then has 5 business days to either accept the changes or make his/her own changes and return both copies to the tenant, in which case the parties have a further 7 business days to reach agreement or refer the matter to the Commissioner of Tenancies for resolution.
Within 3 days of the tenant vacating the premises, the landlord should provide 2 copies of a completed outgoing condition report to the tenant. The report must be completed in the presence of the tenant, unless it is not practical to do so or the tenant does not show up at the agreed time. The tenant may accept the report and sign and return 1 copy to the landlord. If a dispute occurs over the contents of the condition report which has not been resolved within 7 business days, either party may refer the matter to the commissioner.
How much advance rent can the landlord charge?
A landlord cannot require a tenant to pay rent in advance of more than 1 rental period.
How much can the landlord charge for a security deposit?
The maximum security deposit that a landlord can ask for is the equivalent of 4 weeks' rent. The landlord holds the security deposit in trust for the tenant and must pay it back at the end of the tenancy, provided there are no claims against it for unpaid rent, damage to the premises, damage to or loss of ancillary property, cleaning costs, or other amounts owed to the landlord under the tenancy agreement. If the tenancy agreement does not specify who is to receive interest on the deposit, the interest must be paid to the party entitled to receive the greater part of the security deposit at the end of the tenancy. The exception is if the deposit is held by a real estate agent, in which case the agent retains the interest.
If the rent is increased, the landlord may ask the tenant in writing to increase the security deposit. However, the total security deposit held by the landlord must not be greater than 4 weeks' rent. Notice to increase the security deposit can only be issued 2 years after a security deposit was paid or last increased.
The landlord must return the security deposit to the tenant (less any amount they are entitled to retain) within 7 business days of the tenant vacating the premises. The landlord must also give written notice to the tenant setting out how much the landlord wishes to retain and for what reason(s), and attach receipts and other supporting documentation. If the landlord has not returned the deposit to the tenant or made a claim against the deposit within 7 business days of the end of the tenancy, the landlord is required to return the security deposit in full.
When is the landlord allowed to increase the rent?
Rent can only be increased during a tenancy if the right to do so is specified in the tenancy agreement. The tenancy agreement must also state the amount of the increase or the method of calculation of the increase. The landlord must give at least 30 days notice in writing before the effective date of the rent increase, which must be at least 6 months after the date the tenancy commenced or 6 months from the last increase.
Rent may also decrease, either pursuant to a specific provision of the tenancy agreement, or by a written agreement signed by the landlord and tenant.
How can a tenancy agreement be terminated?
If a fixed term agreement (e.g. 6 months, 1 year, etc) is not terminated by either party at the end of the agreed term, the tenancy continues as a periodic agreement (e.g. week-to-week, month-to-month, etc). If the landlord or tenant wishes to end the tenancy at the end of the fixed term, they must give the other party notice of termination in writing at least 14 days prior to the end of the term.
The landlord may terminate a periodic tenancy for no reason by giving the tenant 42 days notice in writing. The tenant may terminate a periodic tenancy for no reason by giving 14 days written notice.
Either party may terminate the tenancy (i) if access to the premises has not been available for more than 3 days because of flooding; (ii) if continued occupation of the premises is a threat to the health or safety of the tenant or members of the public or a threat to the safety of the landlord's property; (iii) if the premises have become uninhabitable.
When is the landlord permitted to enter the premises?
Except in an emergency or if significant damage to the premises is threatened (when no notice is required), the landlord or agent can only enter the premises under certain circumstances, and only between the hours of 7 am and 9 pm, after giving the proper amount of notice:
(a) At least 7 days notice must be given for the landlord to enter to collect rent, and the collection time must be previously arranged.
(b) To complete a condition report, 24 hours notice must be given.
(c) To inspect the premises, at least 7 days notice must be given. The landlord can only enter for inspection once every 3 months, unless the tenancy agreement states a longer period.
(d) 24 hours notice must be given for the landlord to enter to carry out or inspect repairs or maintenance on the premises.
(e) To show the property to a prospective tenant, 24 hours notice must be given and entry is only allowed 28 days before the termination of the tenancy agreement. To show the property a prospective purchases, 24 hours notice must be given. In both circumstances, the landlord must be reasonable about the number of inspections.
(f) If the premises have been abandoned by the tenant and rent is owing, no notice is required. If the premises have been abandoned but no rent is owing, an order from the Commissioner is required.
On what grounds can a landlord evict a tenant?
A landlord can terminate the tenancy agreement for a number of reasons included: rent being in arrears for a period of not less than 14 days; a tenant's breach of the tenancy agreement other than failing to pay rent; causing or permitting damage to the premises; using the premises for any illegal purpose; causing or permitting a nuisance; causing interference with the reasonable peace or privacy of another person within the vicinity; accommodation provided as a condition or behefit of employment to a tenant who is no longer an employee of the landlord. The landlord must give the tenant appropriate notice as set out in the Act. If within the time period stated in the notice, the tenant has not either moved or cured the default (if possible), the landlord can apply to the Commissioner or the Court for an order for possession which will allow the landlord to enter the premises.
The landlord cannot use force to make a tenant leave and cannot enter the premises to take possession without an order from either the Commissioner or the Court.
The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.
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