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Melbourne, Vic 3000
Australia
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Melway: 1D M6
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News & Editorials
Every week Central Equity writes a number
of news editorials which appear in Melbourne newspapers. This weeks article is posted below.
Click here
to access our archive of news editorials
18/11/00
LANDLORDS
AND TENANTS RIGHTS AND RESPONSIBILITIES PART 2
Set
out below are a number of typical questions, which are often asked
by landlords and tenants, together with an explanation for each.
(10) WHEN SIGNING A LEASE DO I GET A BOND?
Yes, a tenant does pay a security deposit, known as the bond. The
Act limits this security deposit to one monthıs rental for rentals
less than $350 per week. Over this amount there is no limit and the
amount is negotiated with the tenant. The usual is 5 or 6 weeksı rental.
(11) DOES THERE HAVE TO BE A CONDITION REPORT?
A landlord or agent taking a bond has to prepare a condition report
on the premises. This report sets out the state of repair or general
condition of the premises, including any items as being good, fair
or poor. The condition report is evidence that can be used if there
is a dispute later about who should pay for cleaning, damage or missing
items. If it is done properly, it can be conclusive proof.
(12) WHO EARNS THE INTEREST ON THE BOND?
The government receives interest on trust accounts where security
deposits are held. This money is used to run the Small Claims Tribunal,
Residential Tenancies Tribunal and Estate Agents legislation.
(13) WHAT HAPPENS TO THE BOND DURING THE TERM OF THE LEASE AND
WHEN DO I GET THE MONEY?
All bond monies are held in a central government account called RTBA
(Residential Tenancies Bond Authority) WHEN the tenant vacates the
premises this is returned or held to cover any costs, repairs or disputed
amounts.
(14) THE REPAIRS REQUIRED TO MY UNIT ARE GREATER THAN THE ONE MONTHıS
BOND RETAINED, HOW DO I GET THE BALANCE OF THE REPAIRS PAID?
The landlord can apply to the Residential Tenancies Tribunal for compensation
to recover the costs of repairs. If the Tribunal agrees this money
can be claimed from the tenant.
(15) CAN THE TENANT STOP PAYING RENT FOR THE LAST MONTH IF THE
BOND WILL COVER IT?
No. The bond is separate. A tenant can be fined $1000 for trying to
treat any part of the bond as rent.
(16) WHAT HAPPENS IF I WANT TO SELL MY PROPERTY WITH A TENANT IN
IT?
If the tenant has a lease, the property must be sold subject to that
existing lease and the tenant has the right to stay until it expires.
If the lease has expired or is about to expire, the tenant can be
given 60 days notice to vacate. Inspections of the property must be
carried out by agreement with the tenant, but the tenant cannot unreasonable
prevent prospective purchasers from inspecting the property.
(17) THE TENANT DISAPPEARED, WHAT IS THE POSITION?
The landlord has access to the security deposit to cover a situation
if a tenant disappeared owing rental or if repairs or cleaning were
required to the property. The landlord would be able to recover from
the bond any rental owing as well as reletting costs. If any additional
money is owing then this can be followed up through a debt collection
agency.
(18) CAN THE TENANT BRING IN OTHER PEOPLE?
The tenant has to get the landlordıs or agentıs written permission
before assigning or sub-letting the premises or any of the premises.
If permission is granted, then a new tenancy agreement needs to be
entered into and matters relating o the bond and condition report
need to be resolved.
(19) MUST THE BOND AUTHORITY BE INFORMED ABOUT THE CHANGES?
The bond authority must be told about any changed arrangements concerning
the bond, otherwise it will not be able to pay out the bond to the
right person. Both the new and old landlords/tenants are responsible
to notify the band authority.
(20) WHO IS RESPONSIBLE FOR REPAIRS?
All repairs are the landlordıs responsibility, but if the tenant is
responsible for the damage the landlord can ask the tenant to arrange
or pay for repairs. When a water appliance, fitting or fixture needs
to be replaced, the landlord has to make sure the new one is rated
at least "A" for water efficiency under the Australian Standard (MP64-1995).
You can tell they are rated "A" by checking with a plumber and there
should be label showing the rating on the appliance.
(21) WHAT COUNTS AS AN URGENT REPAIR?
- A burst pipe
- A blocked or broken lavatory system - A serious roof leak - A dangerous
electrical fault - Flooding or serious flood damage - Serious storm
or fire damage - A failure or break down of any essential service
or appliance provided by the landlord or agent for hot water, water,
cooking, heating or laundry - A failure or breakdown of the gas, electricity
or water supply. - Any fault or damage that makes the rented premises
unsafe or insecure - An appliance, fitting or fixture which is not
working properly and causes a substantial amount of water to be wasted,
or - A serious fault in a lift or staircase in the rented premises.
(22) WHAT TO DO ABOUT URGENT REPAIRS?
If urgent repairs are needed the tenant should first take reasonable
steps to arrange for the landlord or agent to fix the problem. If
the tenant is not able to get the landlord or agent to carry out urgent
repairs, the tenant can have them down and the landlord or agent will
have to pay the tenant the reasonable cost of repairs or $1000, whichever
is less.
(23) WHAT TO DO WITH NON URGENT REPAIRS?
The tenant can give the landlord or agent 14 days written notice of
any repairs that need doing. If the land lord or agent does not carry
out the repairs within 14 days after receiving the notice, the tenant
should send a copy of notice t the Office of Fair Trading and Business
Affairs with a letter asking an investigation.
(24) WHO JUDGES WHAT IS FAIR WEAR AND TEAR?
The managing agent will judge reasonable usage. If the tenant disagrees
then the parties may make application to the Victorian Civil and Administration
Tribunal (VCAT).
(25) HOW CAN I PROVE WHAT THE UNIT WAS LIKE BEFORE THE TENANT MOVED
IN?
A condition report is completed by the managing agent prior to the
tenant moving in. The tenant then must indicate agreement by signing
and returning a copy of the condition report within three days of
moving into the premises. The report indicates the condition of all
items within the property such as carpet, painting, fixtures, etc.
The condition report is then used when the tenant vacates and the
items are checked against their initial condition, taking account
fair wear and tear.
Central Equityıs wholly owned subsidiary, Melbourne Inner City Management
provides a full leasing and management service to all Central Equity
clients. For further information, please call Melbourne Inner City
Management, Monday to Saturday during business hours on (03) 9670
0222.
DISCLAIMER: Eddie Kutner is a Director of Central Equity. Central
Equity and its subsidiaries (including Melbourne Inner City Management)
are in the business of building and selling residential accommodation,
including apartments, in Melbourne. Readers should obtain their own
independent financial and legal advice.
Click
here
for the archive of Central Equity editorials
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11/11/00
4/11/00
28/10/00
13/10/00
13/10/00
6/10/00
7/07/00
23/06/00
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 for other articles please visit our archive.
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