The ACT Tenancy Laws
The Australian Capital Territory (ACT) Government introduced new tenancy laws on November 1, 2019, which were designed to provide more security for tenants and to ensure that landlords could not take advantage of a tight rental market to extract higher rents or evict tenants without cause. These changes included limiting rent increases, establishing minimum standards for rental properties, and limiting the amount of rental bonds that could be charged.
However, two additional changes to the ACT tenancy laws came into effect on April 1, 2023. These changes are the ban on no-cause evictions and the ban on soliciting rental bids.
ACT tenancy laws
The Ban on No-Cause Evictions
The ban on no-cause evictions is a significant change to the ACT tenancy laws, and it means that landlords in the ACT will no longer be able to evict tenants without providing a reason for the eviction. Under the new laws, landlords will only be able to evict tenants for specific reasons, such as non-payment of rent, damage to the property, or illegal activities.
This change is intended to provide more security for tenants, who previously had little protection against no-cause evictions. It means that landlords will need to have a valid reason for evicting a tenant and will need to provide evidence to support their decision.
Landlords who want to evict a tenant will need to provide a notice of termination that specifies the reason for the eviction. The notice period will depend on the reason for the eviction, with longer notice periods required for longer tenancies.
For example, if a tenant has been living in a rental property for less than 6 months, the landlord will need to give them 4 weeks’ notice if they want to terminate the tenancy for a reason other than non-payment of rent. However, if the tenant has been living in the property for more than 2 years, the landlord will need to give them 26 weeks’ notice.
If a tenant has been living in a rental property for less than 6 months, the landlord will need to give them 4 weeks’ notice if they want to terminate the tenancy for a reason other than non-payment of rent. However, if the tenant has been living in the property for more than 2 years, the landlord will need to give them 26 weeks’ notice
The Ban on Soliciting Rental Bids
The ban on soliciting rental bids is another significant change to the ACT tenancy laws, and it means that landlords in the ACT will no longer be able to ask tenants to compete against each other by offering higher rent. Under the new laws, landlords will have to advertise a fixed rental price and cannot ask tenants to compete against each other by offering higher rent.
This change is intended to prevent landlords from taking advantage of a tight rental market to extract higher rents from tenants. It means that tenants will have more certainty about the rent they will be paying and will not have to worry about being priced out of a rental property by other tenants who are willing to pay more.
Under the new laws, landlords will need to advertise a fixed rental price when they list a property for rent. They will not be able to ask tenants to offer a higher rent to secure the property, and they will not be able to negotiate a higher rent with a tenant once the tenancy has started.
Landlords who breach the ban on soliciting rental bids could face fines of up to $10,000. This penalty is intended to deter landlords from breaking the law and to provide a strong incentive for them to comply with the new rules.
Under the new laws, landlords will need to advertise a fixed rental price when they list a property for rent.
Other Changes to the ACT Tenancy Laws
It is worth noting that the ACT Government may make further changes to the tenancy laws in the future if they believe that additional protections are required for tenants or if they identify areas where the laws can be improved. As with any legislation, the tenancy laws are subject to review and revision over time to ensure that they remain effective and relevant.
Boettcher Law is a law firm that specializes in providing legal services related to property law, including tenancy law. As such, they can assist both tenants and landlords with a range of legal issues that may arise during a tenancy. Here are some of the ways that Boettcher Law can help tenants and landlords:
For Tenants:
- Advice on Tenancy Agreements: Boettcher Law can review tenancy agreements to ensure that they are fair and compliant with the relevant laws. They can also provide advice on what to do if a tenant believes that the agreement is unfair or if they have concerns about specific clauses.
- Assistance with Bond Claims: Boettcher Law can assist tenants with making bond claims if they believe that their landlord is withholding their bond unfairly. They can also provide advice on how to avoid bond disputes and how to ensure that the bond is returned at the end of the tenancy.
- Representation in Disputes: Boettcher Law can represent tenants in disputes with their landlords, such as disputes over rent increases, repairs and maintenance, or termination of the tenancy. They can also provide advice on how to resolve disputes through mediation or other means.
For Landlords:
- Drafting Tenancy Agreements: Boettcher Law can assist landlords with drafting tenancy agreements that comply with the relevant laws and protect their interests. They can also provide advice on how to include specific clauses that will benefit the landlord.
- Assistance with Bond Claims: Boettcher Law can assist landlords with making bond claims if they believe that their tenant has caused damage to the property or failed to pay rent. They can also provide advice on how to avoid bond disputes and how to ensure that the bond is returned at the end of the tenancy.
- Representation in Disputes: Boettcher Law can represent landlords in disputes with their tenants, such as disputes over rent arrears, damage to the property, or breach of the tenancy agreement. They can also provide advice on how to resolve disputes through mediation or other means.