Legal Comment by Mark Illidge

July 2009

The Residential Tenancies and Rooming Accommodation Act commenced on 1 July 2009. The new act covers general tenancies, movable dwellings and rooming accommodation.

Landlords and agents for residential tenancies are now required to state a fixed price when advertising or offering rental properties. Rent ranges (eg. $350 to $400), advertising without price, and rent bidding are prohibited. However a landlord is still able to place a "For Rent" sign on or near the rental property without stating a fixed price.

Landlords are prohibited from increasing the rent within six months of the last increase. This prohibition will apply:

• Whether the increase is to take effect during an existing agreement or to the next agreement;
• Provided at least one tenant responsible for the current rent will be responsible for the future rent; and
• Regardless of whether there has been a change in the landlord since last increase.

Landlords are now required to give two months notice of the rent increase to tenants under fixed-term or periodic agreements.

The new Act also covers providers (owners and managers) and residents of rooming accommodation, classified as such if:

• Its main purpose is to provide accommodation in return for rent for one or more rooms;
• Residents have the right to occupy their room/s, but not the entire premises; and
• Residents share facilities outside their room with one or more residents (eg., bathroom, common room or kitchen).

The Act does not apply to providers of rooming accommodation where the provider lives on the premises and there are fewer than four rooms available for rent. A Rooming Accommodation Agreement has been introduced, which must be used for tenancies commencing after 1 July 2009.

Information and forms can be obtained from the Residential Tenancy Authority by calling their Client Contact Centre on 1300 366 311.

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