What is the legislation governing residential tenancies in Victoria?
The Residential Tenancies Act 1997 covers the rental of residential properties such as houses, flats, strata units, and similar accommodations.
Is it necessary to have a written tenancy agreement under the Act?
No, tenancy agreements can be either written or verbal. A written agreement is preferable as it clearly sets out the rights and responsibilities of the parties.
What about a signed property condition report?
If a bond is being paid, the landlord or agent must prepare a property condition report which notes the general condition of the premises, including fittings and fixtures. The landlord must give 2 copies of the signed condition report to the tenant before the tenant moves in. The tenant must fill out and return the condition report to the landlord within 3 business days of moving in. Both parties should keep their copy of the condition report until the end of the tenancy.
How much advance rent can the landlord charge?
If rent is paid weekly, the landlord cannot ask for more than 14 days rent at the beginning of the tenancy. In any other case, provided the rent is not more than $350 per week, the landlord cannot ask for more than 1 month's rent in advance.
How much can the landlord charge for a rental bond?
The bond (or security deposit) is paid to secure the landlord against any unpaid rent, damage to the unit or cleaning required when the tenant moves out. The landlord can claim some or all of the bond at the end of the tenancy to pay for these items, and can also claim compensation from a tenant if the bond does not cover all the losses incurred by the landlord. The landlord cannot ask for a guarantee if a bond is being paid, unless the rent is more than $350 a week or the tenant is renting the landlord's own home until the landlord resumes living in the premises.
If the rent is $350 a week or less, the bond cannot be more than 1 month's rent, unless the premises are the landlord's usual place and residence and the tenant is renting it until the landlord wishes to resume living in it. The bond cannot be increased during the tenancy.
The landlord must give the tenant a completed Bond Lodgement form, which must be signed by both parties and sent to the Residential Tenancies Bond Authority along with the bond payment within 10 business days of the landlord receiving the bond.
At the end of the tenancy, the parties must complete a Bond Claim form and submit it to the Residential Tenancies Bond Authority. If any part of the bond is to be paid to the landlord, the form cannot be signed more than 7 days before the end of the tenancy.
What other fees can the landlord charge?
The landlord or agent is permitted to accept a deposit, which must be refunded when the agreement is signed by both parties. If no agreement is made within 14 days, the money must be refunded by the next business day.
The landlord cannot charge for showing the premises to a prospective tenant, issuing a rent payment card, establishing or using direct debit facilities, making, continuing or renewing a tenancy agreement (this is sometimes called a premium, bonus, commission or key money).
When is the landlord allowed to increase the rent?
If the tenancy agreement is for a fixed term (such as 6 months, 1 year, etc), the landlord cannot increase the rent before the end of the term unless the agreement makes specific provisions for a rental increase. If the tenancy is a periodic tenancy (e.g. month-to-month), the landlord must give at least 60 days written notice before raising the rent. In any event, the landlord cannot increase the rent more than once in any 6-month period.
How can a tenancy agreement be terminated?
Even if the tenancy is for a fixed term, the tenant must give notice in writing or the landlord must give a Notice to Vacate if the tenant is to move out at the end of the fixed term. If neither party gives notice to end the tenancy, the agreement automatically becomes a periodic tenancy agreement (e.g. month-to-month, etc. depending on the interval at which rent is paid).
Generally a fixed term tenancy cannot be terminated before the end date set out in the agreement, unless the parties agree to end the tenancy early. In the case of a periodic tenancy, if there are no specific grounds for ending the tenancy, the tenant must give the landlord 28 days written notice to terminate, and the landlord must give the tenant 120 days written notice.
Can a tenant assign the rental agreement or sublet the premises?
The tenant must get the landlord's written permission before assigning or subletting the premises or any part of the premises. The landlord must give permission unless there is good reason to refuse. It is illegal to charge a fee for giving permission.
When is the landlord permitted to enter the premises?
The landlord may enter the premises as long as the tenant agreed to the time and was consulted no more than 7 days in advance. Otherwise, the landlord has the right to enter on 24 hours' written notice to the tenant in order to (i) carry out his/her duties under the tenancy agreement, the Act or any other Act; (ii) value the property; (iii) show prospective buyers, tenders or tenants through the premises; (iv) verify a reasonable belief that the tenant is in violation of the agreement or the Act; or (v) make one general inspection in any 6-month period, but not within the first 3 months of the tenancy. In any of these cases, the landlord can only enter between 8:00 AM and 6:00 PM, and not on public holidays. Prospective tenants can only be shown through the property within 14 days of the termination date of the tenancy.
If the tenant is at home, they must let the landlord in. If the tenant is not at home, the landlord is allowed to enter provided that the requirements regarding written notice have been met.
On what grounds can a landlord evict a tenant?
A tenancy can be terminated and a tenant evicted for a number of reasons, including failure to pay the rent, damage to the premises or common areas, behaviour which endangers neighbours or others in the vicinity, illegal activity on the premises, and breach of the terms of the tenancy agreement.
If the landlord wants to end the tenancy and remove the tenant, they must first serve the tenant with a Notice to Vacate. If the notice period expires and the tenant has not left, the landlord can seek an order for possession, which enables the police to carry out an eviction.
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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