A guide to tenancy law in the Northern Territory.

This legislation details the obligations of both the landlord and the tenant before, during and at the end of a tenancy.

It is important that both landlords and tenants understand this legislation to ensure both parties know their rights and how they are protected by this law.

Tenancy agreements

There are two types of residential tenancy agreements, a Fixed Term Residential Tenancy Agreement or a Periodic Agreement.

A fixed term residential tenancy is an agreement between a landlord and a tenant for a specific period of time, usually for six months or one year.

A periodic agreement or tenancy is for a recurring period without a fixed term.

Before the agreement is signed the following must take place:

▪	the landlord or agent must give the tenant a copy of the proposed residential tenancy agreement
▪	the tenant must be provided with a copy of “A Guide to renting in the Northern Territory” detailing the landlords and tenants obligations. You can download this from the Consumer and Business Affairs – Northern Territory Department of Justice website.
▪	the tenant must be given reasonable time to consider the agreement
▪	the tenant must provide the landlord or agent with their full name
▪	the owner must provide the tenant with their full name and address where the tenant can contact the owner
▪	if an agent signs the agreement on behalf of a property owner, the agent must provide the tenant with the agency’s full name, the fact that they are acting as an agent, and if the agent is a company, an employee (usually the property manager) who can be contacted in relation to the agreement

If both parties still wish to pursue the tenancy then the agreement is signed, bond paid (if requested), advance rent paid and the tenant can move in. A full inventory or condition report detailing the contents and condition of the property should also be signed by both parties.

The landlord is responsible for any costs involved in the preparation of the rental agreement.

Security deposits / rental bonds

A security deposit or bond can be requested from the tenant to cover any damages, breakages or unpaid rent.

The maximum amount that can be requested is 4 weeks rent.

Once the tenant has paid this bond, the landlord must immediately provide a receipt to the tenant. This receipt must detail the tenant’s name, amount and date paid and the property address.

The bond money is to be held by the landlord in trust for the tenant. If the landlord leaves the territory for more than 14 days the bond should be paid to a real estate agent or a person approved by the Commissioner of Tenancies. The tenant is entitled to request, in writing, from the landlord details of the account in which this money is held.

At the end of the tenancy a full inspection of the property should be undertaken and the keys returned to the landlord. The landlord must return the security deposit, less any amount for which they are entitled to, to the tenant within 7 days after the end of the agreement.


The landlord can retain money from the bond to cover the following:

▪	unpaid rent or utility bills payable by the tenant
▪	cleaning of the property and/or its contents which was left unreasonable dirty by the tenant
▪	repairing any damage to the property, its contents and services which was caused by the tenant (except for normal wear and tear)
▪	repairing or replacing any locks which were altered, removed or added by the tenant without the landlords consent
▪	replacing any items destroyed or lost by the tenant
▪	payment of compensation to the landlord if the tenant stayed in the property after they were required to vacate
▪	to pay any money ordered by the Commissioner of Tenancies or Court which was to be paid by the tenant but has not been paid

The landlord must give the tenant 7 days notice before the end of the agreement of his intention to retain all or part of the bond money. This notice must state how much the landlord intends to retain, what it is for and provide any supporting documents.

If a tenant abandons the property before the end of the fixed term agreement the landlord can continue to hold the bond in trust to cover loss of rent and additional costs in re-letting. Once the landlord establishes the loss he must make an application to the Commissioner of Tenancies for compensation.

If there is a dispute then either party can make an application for a refund to the Commissioner of Tenancies.

In addition to requesting a bond the landlord can also request a payment of rent in advance of 1 month’s rent if the agreement is fixed term or 2 weeks rent if the agreement is periodic.

Landlord Responsibilities

During the tenancy the landlord is required to:

▪	provide and maintain the property in a reasonable state of repair and cleanliness
▪	maintain all locks or security devices to ensure the property is secure
▪	allow the tenant quiet enjoyment of the property
▪	provide receipts for any moneys received from the tenant
▪	keep records of all rent payments
▪	pay any council taxes and rates

An increase of the rent can only occur if specified in the agreement. The agreement must state the amount of the increase or the method for calculating the increase. It cannot be increased within 6 months of the start of the tenancy or date of last increase. 30 days notice must be given.

Tenant Responsibilities

During the tenancy the tenant is required to:

▪	keep the property reasonably clean
▪	pay the rent on time
▪	notify the landlord or agent of any problems or damages within a reasonable time scale
▪	return the property to the same standard except for reasonable wear and tear
▪	notify the landlord if the property is to be vacant for more than 30 days

They should also not:

▪	use the premises for any illegal purpose
▪	cause or allow nuisance
▪	disrupt their neighbours
▪	not fix anything to the premises or carry out any renovation, alteration or addition without the landlord’s written consent.
▪	intentionally or negligently cause or allow any damage to the property

Urgent repairs during a tenancy

The tenant must notify the landlord as soon as possible if there are any repairs required, ideally in writing so there is evidence that the landlord has been notified. The landlord must then be given reasonable time to carry out these repairs.

A tenant can organise for certain repairs to be carried out if:

▪	the property is not fit to live in or the main services to the property are unsafe
▪	if the property or the main services are likely to become unsafe, unihabitable or insecure
▪	if the repairs are not carried out and there is a reasonable possibility of damage to the property and its services

The tenant must have informed the landlord in writing and if within 7 days the landlord has failed to carry out these repairs or not organised for the repairs to be done then the tenant can organise this.

The tenant can also organise the repairs if the landlord said he has organised the repairs but then fails to do so within 21 days.

The tenant must try and use the services of the nominated repairer (if details have been provided in the agreement). If this person is not available or cannot carry out these repairs within a reasonable time then the tenant should obtain 2 separate quotes from other tradespeople and choose the lowest quote. The tenant can arrange for the repairer to bill the landlord directly or the tenant can pay the bill and inform the landlord in writing of the cost and ask for the landlord to either reimburse them or allow for the cost to be deducted from the rent. However the tenant can only claim costs that are equal or less than 2 weeks rent. The tenant should also obtain a written report from the tradesperson stating the apparent cause of the problem and how it has been rectified and a receipt.

Emergency repairs are classed as:

▪	a dangerous electrical fault
▪	a failure of gas, electricity or water supply to the property
▪	flooding or serious flood damage
▪	serious storm or fire or impact damage
▪	a gas leak
▪	a burst water service
▪	a blocked or broken lavatory system
▪	a serious roof leak
▪	a failure or breakdown of any service or appliance on the property essential for hot water or cooking
▪	a fault or damage that causes the residential property to be unsafe or insecure
▪	a serious fault in any door, staircase, lift or other common area which inconveniences the resident in gaining access to or use of the property
▪	a fault or damage likely to cause injury to person or property.

The tenant must notify the landlord immediately in writing of the emergency repairs and if within 5 days the landlord has failed to carry out these repairs or not organised for the repairs to be done then the tenant can apply to the Commissioner of Tenancies for an order requesting that the repairs are carried out.

The tenant can also apply for an order from the Commissioner of Tenancies if the landlord said he has made arrangements for the repairs to be carried out but then the problem is not rectified within 14 days.

If the tenant, or a guest of a tenant, has caused the damage then the tenant is responsible for the cost.

Locks for the property may only be changed providing that the other party has consented. A copy of the new key(s) must be provided to the other party. It is the landlords responsibility to maintain any locks or other security devices to ensure that the property remains secure.

Accessing the property during a tenancy

The landlord or agent can inspect the property no more than once every 3 months. At least 7 days notice must be given and a reasonable time and day should be specified in the notice.

The landlord can access the property to collect rent payments. At least 7 days notice must be given and the collection time previously agreed.

Incase of any emergency such as fire, flooding, burglary etc , the landlord or agent can enter the property at any time.

The landlord can enter the property to carry out or inspect any repairs or maintenance. 24 hours notice must be given.

The landlord can enter the property to complete a condition report. 24 hours notice must be given.

Within the last 28 days of the existing tenancy then the landlord should be allowed access to show the property to prospective tenants. 24 hours notice must be given and the landlord must be reasonable about the number of viewings.

The landlord can enter the property to show it to prospective buyers. 24 hours notice must be given and the landlord must be reasonable about the number of viewings.

If the tenant has abandoned the property and there is still rent payments outstanding then the landlord can enter without giving notice. However if the tenant has abandoned the property but there is no rent payments outstanding an order must be obtained from the Commissioner of Tenancies.

Entry to the property should only be made between the hours of 7am and 9pm.

Ending a tenancy

A fixed term tenancy is binding and the tenant and landlord should adhere to the rental agreement. However sometimes it is necessary for a tenancy to end before the end date of the fixed term contract. Circumstances can change or there could be a breach of the agreement. Whatever the reason the correct notice period must be served and in some circumstances the party breaking the agreement may be liable to pay the other party compensation.

Notice by landlord

If the landlord wishes to terminate the agreement at the end of the fixed term contract he must serve the tenant with a “Notice of Termination” at least 14 days before the end of the contract. If the landlord does not do this and the tenant does not give notice to vacate the tenancy continues as a periodic agreement.

If the property has become uninhabitable or been unavailable for more than 3 days because of flooding the landlord can terminate the agreement by giving 2 days notice.

The landlord can also give 2 days notice to terminate the agreement if continued occupation of the property is a risk to the health and safety of the tenant or another member of the public or a threat to the safety of the property.

If the tenant has been served a “Notice to Remedy a Breach” for non-payment of rent or for any other breach of the agreement and has subsequently failed to remedy the breach within the applicable timescale then the landlord cannot issue a Notice of Termination directly to the tenant but must apply to the Commissioner of Tenancies for termination and possesion orders.

If the tenancy is a periodic tenancy the landlord must give 42 days notice to end the agreement.

The landlord can apply to the Commissioner of Tenancies for a termination if they believe that continuing the tenancy will cause them severe hardship.

Notice by tenant

If the tenant wishes to terminate the agreement at the end of the fixed term contract he must give the landlord at least 14 days notice before the end of the contract. If the tenant does not do this and the landlord does not give a “Notice of Termination” the tenancy continues as a periodic agreement.

If the property has become uninhabitable or been unavailable for more than 3 days because of flooding the tenant can terminate the agreement by giving 2 days notice.

The tenant can also give 2 days notice to terminate the agreement if continued occupation of the property is a risk to their own health and safety or that of another member of the public or a threat to the safety of the property.

In the event that the tenant wants to leave the property before the end of a fixed term agreement he must inform the landlord in writing giving as much notice as possible and stating that they would like the landlord to find a new tenant. However the tenant should try and find the landlord a new tenant as they are responsible for any loss of rent until a new tenant is found. In some cases the landlord may agree to the tenant leaving early without any penalty. If the landlord does not agree to the tenant leaving early and the tenant abandons the property the landlord should take all reasonable steps to re-let the property. The landlord can then apply to the Commissioner of Tenancies for compensation from the previous tenant.

If the tenancy is a periodic tenancy the tenant must give 14 days notice to end the agreement.

The tenant can apply to the Commissioner of Tenancies for a termination if they believe that continuing the tenancy will cause them severe hardship.

Termination by the Commissioner of Tenancies

The Commissioner of Tenancies deals with disputes relating to tenancies. The Commissioner will determine if the matter should be dealt with through a preliminary conciliation conference, a conciliation conference or forwarded directly to an inquiry.

Either party can make an application to the tribunal for a termination.

Application forms and further information can be obtained from the Department of Justice – Northern Territory Government website.

Eviction

A landlord cannot force a tenant out of a property or try and force a tenant out by cutting supplies or changing locks. The landlord must apply to the Commissioner of Tenancies for an Order of Possession to be served on the tenant.

This is a brief guide to Tenancy Law in the Northern Territory. For a full copy of the Residential Tenancies Act 1999 (RTA) please click here.