Tenants’ Union of Tasmania Inc. Lesson Four Rent and Rent Arrears

RentRent Usually payable in advance Usually paid weekly or fortnightly, but can be up to monthly (maximum of 28 days) If paying by cash or cheque, the tenant should receive a receipt (if payment is made electronically the bank records can form the receipt) Landlord can not harass the tenant for rent nor can they hold the tenants possessions in exchange for rent (this is known as distress) (Landlords can be fined up to $6500 for breaches of the harassment and distress clause of the Act)

Rent increases Only allowable under the following conditions: The written lease allows for a rent increase; The lease is a verbal lease; The tenant must be given 60 clear days notice; Only one increase every six months; Tenant can dispute ‘unreasonable’ increases.

Rent increase disputes are heard in the Magistrates Court. In deciding if an increase is reasonable, a number of things will be considered including the general level of rent in comparable properties. To support their case, the tenant can have the property appraised by a professional to determine market rent (at their own cost), or research similar advertised properties in their area. Rent increase disputes

Rent arrears A tenant is considered to be in arrears if they fall behind in their rent payments. Where rent is paid in advance, the number of days they are in arrears is equal to the number of days since the rent in advance payment was due. E.g. If a rent in advance payment was due on the 1st March for the period 1-14th March, and was not paid by the 5th of March – the tenant would be 5 day in arrears. If still not paid by the 14th, the tenant would then by 14 days in arrears. Rent that is consistently paid late is a breach of the ‘rent in advance’ section of the Act

The landlord can serve a Notice to Vacate with 14 days notice on the tenant for rent in arrears. If the tenant pays the arrears within the 14 days, the Notice to Terminate is no longer valid UNLESS The tenant has already received two valid NTV’s within the previous 12 month period. (Ie. if it is the third NTV on the basis of rent arrears in a 12 month period, the tenant must vacate the property.) Rent arrears

Money other than rent During the tenancy the landlord is not permitted to charge the tenant for anything other than: Rent in advance (no more than 28 days) Water charges Compensation for damage

Only water USAGE charges are payable (i.e. the metered component of a water bill), and only when: A council (or water authority) makes a separate charge for water consumption; The premises has a water meter which calculates the amount of water used AND that meter is not shared with another property. Water charges