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| Like
most legal issues, tenancy law has its own bizarre language. If you
came across a term in the guide that you didn’t understand,
check this list for an explanation. Assignment of the lease or agreement: this is when a person whose name is on the residential tenancy agreement signs over their legal rights as a tenant in the house/flat to another person. Bond: this is a security paid by the tenant/s and held by the Rental Bond Board (RBB) of the Office of Fair Trading for the duration of the tenancy. The bond is usually equal to four weeks rent for unfurnished premises, and six weeks rent for furnished premises. At the end of the tenancy, the bond should be returned to you in full unless you are behind in your rent or have damaged the property, in which case the landlord can claim for their losses. Boarder: a lodger who has meals provided by the landlord or head tenant. Boarders and lodgers are not covered by the Residential Tenancies Act and have virtually no protection in relation to their housing. See lodgers below for more details. Breach by landlord: the landlord/agent breaches the tenancy agreement when they fail to fulfil their obligations under the agreement, for example, they don't do repairs, the house is insecure, or they invade your privacy. Breach by tenant: this is where you break one or more of the terms of your tenancy agreement, for example, if you fall 14 days behind in your rent, cause damage to the house or fail to maintain the premises in an adequate state of cleanliness. Community justice centres (CJCs): these are centres funded by the Government to provide free mediation for people who are having a dispute and need an independent person to act as a mediator to help resolve the problem. CJCs can be used by co-tenants and head tenants and subtenants to deal with disputes in a share house. There are community justice centres in a number of local areas in NSW (see Contact Points). Conciliation: this is where people in dispute agree to come together and attempt to settle a dispute without going to court. An independent third party (the conciliator) assists the parties to understand and settle their differences. The conciliator should have no interest in the dispute but may offer their opinions if this assists the process. However, a conciliator shouldn't try to impose their own ideas about the terms of settlement on the people involved in conciliation. The Consumer , Trader and Tenancy Tribunal has an obligation to make sure settlement has been attempted before it hears and decides disputes between landlords and tenants. To assist this process, the Tribunal offers conciliation services to disputing parties. Condition report: this is a written record of the condition of a rented house or flat, which should be completed when you move in and then again when you move out. Your landlord/agent should give you a report to fill in when you sign the lease (this is Part 2 of the lease). It’s very important that you fill it out in detail and return it within seven days. Continuing agreement: at the end of the initial fixed term of a lease (e.g. six months), the tenancy agreement automatically becomes a continuing agreement unless you or the landlord/agent has given prior written notice about wishing to terminate the agreement. All the conditions of the original lease stay the same except that: the agreement can now be terminated without having to prove a breach by either party (60 days written notice for a no-cause termination from the landlord and 21 days notice from the tenant, or 30 days notice if the place has been sold with vacant possession); and the rent can be increased (with 60 days written notice). Consumer, Trader and Tenancy Tribunal: this is the legal body which was set up to resolve residential tenancy disputes. The Act that governs the Tribunal is called the Consumer, Trader and Tenancy Tribunal Act (2001). The Tribunal is similar to a court, but not as formal (for example, people are usually not represented by lawyers) and much cheaper. It costs only $30 to make an application to the Tribunal ($5 if you're on Centrelink benefits or a student on Austudy/Youth Allowance/ Abstudy) and there are usually no other costs. Co-tenant: when two or more people sign the tenancy agreement they are known as co-tenants. Each co-tenant has the same legal rights and responsibilities regarding the house or flat. This means that you are all legally responsible for paying the rent and looking after the place. It also means that one tenant does not have the right to evict another co-tenant. Eviction: a scary term covering the process where you are forced to leave your rented home. Tenants can only be evicted by order of the Consumer, Trader and Tenancy Tribunal, following the appropriate notice of termination from the landlord/agent. Boarders and lodgers have far less protection and can be evicted without having to go through this process. For full details about the eviction procedure, see Moving Out. Exclusive possession: you are said to have 'exclusive possession' of your room in a share house when it is understood that other flatmates and the landlord cannot enter your room without your permission. It doesn't mean that you must have a lock on your door. Whether or not you have exclusive possession of your room is an important factor in working out whether you are a subtenant or boarder/lodger and therefore what your legal rights and responsibilities are in the share house. See boarders and lodgers for more information about this. Fixed term: the period for which a tenancy agreement is signed, usually 6 or 12 months. Head tenant: this is a person who signs a tenancy agreement and then sub-lets rooms in the house or flat to one or more other people. The head tenant's name is the only name on the lease and they have the rights and responsibilities of a landlord in relation to their subtenants. This means, for example, that they are responsible for collecting the rent and getting the landlord/agent to do any necessary repairs. It also means they can ask their subtenants to move out but must give the appropriate amount of notice (60 days, or 14 days if there has been a breach of the agreement). (See also subtenant.) Kitty: a cute term for the joint shopping 'account' in a share house. Generally everyone in the house pays the same amount (usually about $30—$40 per week) to buy food and household items jointly. It's often cheaper and easier to have a kitty than for everyone to buy their own food and goods separately. Landlord: this is a term for someone who leases a property they own to tenants. Landlords often view their rented properties as money-spinners and forget that they are other people's homes. Fortunately, the rights and responsibilities of the landlord are now spelt out in the Residential Tenancies Act which provides some protection for tenants in rented accommodation. Landlords can be men, women, companies or trusts. Lease: the old name for what is now called a residential tenancy agreement. In this guide we use both terms to refer to the tenancy agreement between a landlord/agent and tenant(s). Lodger: someone who rents a room but does not have exclusive possession of the room. If you rent a room in a hotel-style house, where you share a laundry, kitchen and other areas, and/or where the landlord provides you with sheets, cleaning or other services, then you may legally be a lodger. Some people in share houses may also be classified as lodgers, for example, if you are renting a room in an owner-occupied house or the place is run by a head tenant and you are not seen to have an equal say in the running of the house. Lodgers are not covered by the Residential Tenancies Act which means they have virtually no protection in relation to their housing. Rent increases, evictions, repairs and privacy are the greatest problems. Boarders are lodgers whose meals are provided by the landlord or head tenant. Mediation: when you are having a problem or disagreement with someone else, you may need an independent third person, or mediator, to help sort out the problem. A mediator does not take sides. They help the parties discuss the problem and work towards agreement. If your dispute is with a flatmate (or neighbour), you can get help with mediation from a community justice centre. No-cause termination: when there has been no breach of the lease, but either you or the landlord/agent wishes to terminate the agreement, this is known as a no-cause termination. A no-cause termination is not possible during the fixed term of an agreement: this type of termination is known as a termination by consent. Tenants are required to give 21 days notice for a no-cause termination in a continuing agreement; landlords/agents must give 60 days notice. (See also fixed-term agreement.) Order of termination and possession: the Consumer, Trader and Tenancy Tribunal can make an order that a tenancy agreement has ended and that the landlord or head tenant can take back possession of the rented premises or room. This order might be made if the tenant had breached the lease and failed to move out after the landlord had given appropriate notice. (See also eviction.) Owner-occupied: if you are renting a room in a house in which the owner is living, this is known as an owner-occupied house. Often people renting rooms in owner-occupied houses are classified as boarders or lodgers. Quiet enjoyment: a fancy phrase meaning the right to live in your rented premises without interference from others, particularly your landlord/agent. This is one of the conditions of your tenancy agreement. When the landlord keeps popping in on Sunday mornings without warning, your right to 'quiet enjoyment' has been breached. Real estate agent: the real estate agent acts for the landlord and, like the landlord, is subject to the Residential Tenancies Act 1987. Like some landlords, real estate agents can sometimes forget they are dealing with people's homes and often ignore the rights of their tenants under the Act. If you have complaints about your real estate agent, you can phone the Real Estate Institute of NSW or the Real Estate Services Council in the Office of Fair Trading (see Contact Points). Recognition as a tenant: under the Residential Tenancies Act 1987, the Consumer, Trader and Tenancy Tribunal has the power to recognise a person as the tenant of a premises. A flatmate can apply to be recognised as a tenant if they occupy premises and the original tenant has died or left. For example, if you have been living in a share house and the head tenant moves out, you can apply to the Tribunal for recognition as the tenant of the premises on the same terms as the original agreement. Recognition as the tenant can avoid problems such as the landlord evicting you or changing the terms of the agreement. Rent: this is the 'fee' that a tenant pays to a landlord/agent to live in a house or flat. If you have signed a lease, the agreed rent must be written on the agreement and can only be increased after the end of the fixed term period (unless the agreement specifically allows for an increase during the fixed-term period). Rent arrears: this weird phrase refers to the rent owed for the days you have lived in a place but haven't paid rent for. When your rent arrears is 14 days (that is, you are behind in the rent by 14 days, not including the requirement to pay rent in advance), the landlord/agent can issue you with a notice of termination. Rent increase: Any rent increase requires 60 days written notice. If you are a subtenant and have not signed a lease, the rent can be increased at any time with 60 days written notice from your head tenant. For boarders and lodgers, reasonable notice only is required. 'Reasonable' is an elastic term in the law and provides little or no protection. You should contact the Tenants' Union Hotline or your local tenants' service for advice if you feel inadequate notice has been given. Reservation fee: if you decide you want to rent a house or flat, you often have to pay a reservation fee to the landlord/agent while they check out your application. The fee should be no more than one weeks rent and should be credited toward the first week of renting if you get the place. You should be given a receipt. If the landlord/agent rejects your application, you should be given a full refund of the reservation fee. However, if you change your mind and decide not to take the place, you may lose some or all of the reservation fee. Residential Tenancies Act 1987 (RTA): the Residential Tenancies Act sets out the rights and responsibilities of landlords and tenants when they enter into a residential tenancy agreement. If you pay rent and can establish that you are a tenant, then the Act will generally cover your situation. The Act also sets out the procedures and powers of the Consumer, Trader and Tenancy Tribunal which is the legal body that hears and makes decisions on tenancy disputes. The Act covers private housing, public housing, caravan parks and manufactured home estates. It does not cover educational institutions, hospitals, pubs, clubs, holiday letting, boarders, lodgers and some homes or hostels for aged people. It also doesn't cover commercial leases. See Chapter 4 for a list of your rights as a tenant under the RTA. Residential tenancy agreement (or tenancy agreement): this is the contract which is made by the tenant and the landlord/agent at the start of the tenancy. Agreements should be in writing but can be spoken, or part-spoken and part-written. The Residential Tenancies Act sets out the terms which must be part of all tenancy agreements. Usually, an agreement will be signed with an initial fixed term of 6 or 12 months, during which time the rent generally cannot be increased and the agreement cannot be terminated, unless it is breached. Tenancy agreements are also known as leases. Share housing: a flexible communal living arrangement where a number of people share a flat or house, splitting the rent and general living costs. The house can be set up as a co-tenancy, head-tenancy and sub-tenancy, a lodging or a combination of these. Share housing may be rewarding, economical, varied and dangerous — an adventure! Statement of Liquidated Claim: a strange legal term which describes the first document lodged in debt recovery cases. Strata building: a block of flats or units which are not all owned by one person or company. Together the individual owners form the body corporate, now known as the owners corporation under the Strata Schemes Management Act 1996, which has responsibility for common areas and dealing with any general problems which may arise in the building. Strata buildings are governed by a set of by-laws which set out the rights and responsibilities of individual unit dwellers. These by-laws should be included with the tenancy agreement when you rent a unit.. For further information on by-laws and particular issues for unit dwellers, contact the Strata Information Service (see Contact Points). Sub-letting: this is where the person whose name is on the lease, that is, the head tenant, rents a room or even the whole house or flat to another person. Legally, a tenant cannot sub-let without the landlord's prior consent. (See also head tenant and (see below here) subtenant.) Subtenant: a tenant whose name is not on the tenancy agreement who pays rent to a head tenant rather than the landlord/agent. As a subtenant, you have the same rights and responsibilities as other tenants under the Residential Tenancies Act, and the head tenant has the rights and responsibilities of a landlord. Tenant: a person who rents land or property from a landlord. In this guide, the term 'tenant' refers to anyone whose tenancy is covered by the Residential Tenancies Act 1987. Termination: this is when either party decides to end the tenancy agreement, for example, if you give notice to move out or the landlord gives you notice to leave. The agreement does not actually end (terminate) until the tenant moves out or the Consumer, Trader and Tenancy Tribunal makes an order of termination. Water usage: since 1990, tenants in most parts of NSW have had to pay for water usage in rented properties. This will be included as one of the conditions of your tenancy agreement. Tenants don't have to pay water rates, the water service fee or sewerage usage charges which are the responsibility of the owner of the property. If your landlord tries to charge you for these, you should contact your local tenants' advice service. (See also Living in a share house.) |
