A Comprehensive Guide to Landlord Rights and Responsibilities in Canberra
Struggling to understand your landlord rights? You are not alone. Seasoned property investors can struggle, while first-time landlords are often left uneducated on ensuring compliance with these regulations. For all landlords, it is essential to protect both your property and your tenants.
If you have an investment property, you require a clear understanding of the Residential Tenancies Act 1997 (ACT) to navigate the rental market in Canberra. From understanding how to set up a tenancy agreement to how to handle terminations, this blog provides a detailed overview of the current legal rights and responsibilities of landlords in the ACT.
Landlord Responsibilities Before a Tenancy Starts
Before renting out a property in Canberra, landlords must make sure it's safe, liveable, and meets the rules of the Residential Tenancies Act 1997 and the Housing Act. They can handle this themselves or hire a property manager to help. Here are the landlord responsibilities to remember before a tenancy starts:
Provide a Lease
When leasing out your property in the ACT, you must use the standard residential tenancy agreement. This agreement covers all the essentials: rent, bond, lease duration, and any agreed-upon special terms.
Landlords can add their own clauses as long as they don’t override a tenant’s rights under ACT law. Even if a tenant signs it, that clause won’t hold up. Using the standard lease isn’t just a formality — it protects you, your tenant, and your property.
Before signing the lease, the landlord or their agent must give the tenant the following:
- a copy of the tenancy agreement for the tenant to review and sign, including the standard residential tenancy terms
- a copy of the Renting Book, or details about how to find it online
- a copy of the Energy Efficiency Rating (EER) statement for the rental property, if there is one
- an asbestos assessment report of the property
- a statement about whether the rental property complies with the minimum standard for ceiling insulation
- a report on the condition of the property, including information about the property being reasonably clean, secure and fit for habitation.
- safety information for any regulated swimming pool at the property
- if the property is a unit, a unit title rental certificate
- information about services if the property is a part of an embedded network
Tenants must be given a maximum of 3 weeks to review the lease and ask questions before they sign the agreement.
After the lease has been signed, the landlord must give the tenant:
- a copy of the signed tenancy agreement with break-lease fee clauses included
- a set of keys for each tenant on the tenancy agreement
- 2 copies of the condition report
Ensure the Property Meets Minimum Housing Standards
From 2023, Canberra landlords must ensure their rental properties comply with the minimum housing standard of ceiling insulation. Ceiling insulation is a test of how quickly the home loses heat. Ceiling insulation must meet the required R-value, which is a measure of how resistant the insulation is to heat transfer. The higher the R-value, the more heat is retained in the property. The minimum standard for Canberra residential properties is a value of at least R5.
A well-insulated home costs less money to heat and cool. Recent and current developments in Canberra should meet this requirement, but if you have an older property, it’s crucial to get a check completed from a certified insulation installer.
Complete Repairs and Arrange a Condition Report
Landlords should inspect the property and carry out any necessary maintenance before the tenancy starts. A detailed condition report must be completed before the tenant moves in. This report documents the state of the cleanliness of the property, fixtures, fittings, and white goods (if any).
The condition reports must be provided to the tenant before or at the time they take possession and a copy must be signed and returned by the tenant after their review. The landlord must give the tenant a copy of the report within 1 day of the tenant moving in.
Condition reports can be evidence if there is a dispute about the condition of the property when the lease ends. If the tenant continues with another lease in the same property, the same condition report can be used.
Install and Maintain Safety Devices
The property must have working:
- smoke alarms that are compliant
- window locks or safety devices where there's a risk of falls (especially in apartment buildings).
These must be tested and functioning before the tenant moves in.
Utilities and Essential Services
While tenants are generally responsible for connecting and paying for utilities, landlords must pay for the physical installation of utilities such as electricity, gas, water, and NBN connection.
Landlord Responsibilities During the Tenancy
Quiet Use
Landlords must allow tenants quiet use of the rental property. They cannot go into the rental property without notice unless it’s an emergency.
The landlord needs the tenant’s permission to enter the property on Sundays, public holidays, before 8am and after 6pm. The only exception to the above is if the landlord needs to make urgent repairs and if the tenant agrees.
Inspections
Landlords can conduct inspections of the property during the first and final months of the tenancy. Additionally, they can also conduct inspections twice in a 12-month period.
The landlord must give the tenant at least 1 week’s notice before any standard inspection. If the landlord and tenant enter into a consecutive tenancy agreement, they don’t have to do another inspection for the lease that is ending.
Repairs
During the tenancy, the landlord is responsible for all urgent and non-urgent repairs that arise. This is to ensure that the property remains safe and secure for tenants. The landlord must complete all urgent repairs as soon as possible and give the tenant reasonable notice before entering the property. All non-urgent repairs must be addressed by the landlord within 4 weeks. The landlord must give the tenant reasonable notice if they want access to the property to inspect repairs.
The following are considered urgent repairs:
- a burst water supply
- a blocked or broken toilet
- a serious roof leak
- a gas leak
- a dangerous electrical fault
- flooding or serious flood damage
- serious storm or fire damage
- a failure of gas, electricity or water supply to the property
- a failure of any refrigerator or laundry appliance supplied with the property
- a failure of any service for hot water, cooking, heating or cooling
- any fault or damage that makes the property unsafe or insecure, or is likely to cause injury to person or property
- a serious fault in any door, staircase, lift or other common area that prevents or causes undue inconvenience to the tenant accessing or using the property
Showing Property to Potential Tenants or Buyers
Landlords are allowed to access a rental property to show it to potential tenants or buyers. The landlord must give the tenant reasonable notice for this.
Smoke Alarm Testing
The landlord is responsible for installing and maintaining smoke alarms in the rental property. Working smoke alarms must be installed before the tenancy begins. Additionally, landlords must conduct smoke alarm testing once a year. A smoke alarm must be:
- Installed on each storey of the property
- Installed in every part of the property that divides bedrooms from the rest of the property
- Not be more than 10 years old
Either the tenant or the landlord can replace batteries if needed. If it is not outlined in the lease, battery replacement can be paid for by either the tenant or the landlord.
Electrical Safety Tests
The landlord must carry out an electrical safety test every 2 years by a licensed electrician. The landlord must hold a valid Certificate of Electrical Safety (CES) to ensure that the property is compliant.
Swimming Pool Fencing
If the rental property has a swimming pool or spa, it is the landlord’s responsibility to install fences and give tenants safety information before any tenancy begins. In units and townhouses, the landlord must give all tenants a unit title rental certificate before the tenancy begins. This certificate has safety information about any pools in the common property.
Changing the Locks
The landlord or tenant are both entitled to change locks for the property, if the other party agrees. The person who changes the locks is responsible for the cost unless agreed otherwise and must provide the other party with a copy of the key.
If the tenant is the protected person in a protection order, they can change keys without the landlord’s consent and pay for it. They must give a copy of the new key to the landlord.
Rent Increase Limitations
Recent reforms have limited rent increases to once per year in fixed-term or periodic leases. This aligns with broader national trends to protect tenants from frequent and potentially excessive rent hikes. Rent increases require an 8 weeks’ notice period.
Payment of Rent
Landlords cannot require rent payments in advance greater than 2 weeks, unless otherwise agreed. Landlords must provide rent receipts unless rent is paid into a nominated bank account.
Landlord Responsibilities after End of Tenancy
Providing Proper Notice to Tenants
Landlords must give tenants written notice when intending to terminate a lease. With the abolition of "no cause" evictions, landlords can only end tenancies based on specific grounds. The notice period and requirements vary depending on the type of tenancy and the reason for termination. For specific grounds such as breach of agreement or non-payment of rent, shorter notice periods may apply.
Final Inspection and Bond Release
At the end of the tenancy, landlords are responsible for conducting a final inspection of the property to assess its condition. They must compare the property's state to the initial condition report completed at the start of the tenancy. If the property is in good condition, landlords should promptly facilitate the release of the tenant's bond.
Handling Early Termination by Tenant
If a tenant wishes to end a fixed-term tenancy early, landlords can agree to this without requiring compensation. If the landlord does not agree, they are entitled to receive a break lease fee or other compensation as outlined in the lease. Tenants experiencing domestic violence can terminate their lease without a break fee.
Maintaining Communication and Documentation
Landlords should maintain clear communication with tenants throughout the termination process. All notices and agreements should be documented in writing to ensure transparency and legal compliance.
Landlord Rights
Along with responsibilities, landlords also have important rights that protect their investment and ensure a fair tenancy. Understanding these rights can help set clear expectations and maintain a positive relationship between landlords and tenants. Landlords are entitled to the following rights:
- Receive rent: Landlords are entitled to receive rent payments on time as specified in the tenancy agreement.
- Property inspections: Landlords can conduct routine inspections, but must provide tenants with reasonable written notice and can conduct a maximum of 2 inspections in any 12-month period.
- Entry to the property: Landlords have the right to enter the rental property for specific reasons, such as repairs or inspections, but must provide appropriate notice and obtain tenant consent.
- Termination of tenancy: Landlords can terminate a tenancy for valid reasons, including non-payment of rent, property damage, or breach of agreement. However, as of April 1, 2023, 'no cause' evictions are prohibited; landlords must provide a legitimate reason for ending a tenancy.
- Rent increases: Landlords have a right to increase rent, but must provide tenants with at least 8 weeks' written notice. Rent increases are limited to once every 12 months for periodic tenancies.
- Bond claims: Landlords can claim from the tenant's bond for unpaid rent, damage beyond normal wear and tear, or other breaches of the tenancy agreement. Bonds must be lodged with the ACT Revenue Office.
- Dispute resolution: If disputes arise between landlords and tenants, the ACT Civil and Administrative Tribunal (ACAT) can hear and resolve matters related to tenancy agreements, bond disputes, and other rental issues.
Landlord Rights and Responsibilities Toolkit
- Conduct regular property inspections (with proper notice) to identify and address maintenance issues promptly.
- Maintain detailed records of all communications with tenants, especially regarding repairs and rent payments.
- Familiarise yourself with the specific grounds for lease termination under the new laws.
- Ensure all lease agreements and property advertisements comply with the most recent disclosure requirements.
- Use professional property management services to navigate the complex regulatory environment.
Get Support
The rights and responsibilities of landlords in Canberra are undergoing significant changes, reflecting a broader trend towards increased tenant protections. While these reforms present challenges for landlords, they also offer opportunities for more stable and transparent rental relationships. Being a landlord in Canberra comes with significant legal responsibilities — before, during, and after a tenancy. Staying informed and compliant is crucial.
At Independent Property Group, we understand how complex property management can be, especially with evolving legislation. Our experienced team is here to help you protect your investment, stay legally compliant, and provide a smooth experience for both you and your tenants. Get in touch with our team today to find out how we can support you with comprehensive property management services tailored to Canberra’s rental landscape.
References:
- https://www.act.gov.au/__data/assets/pdf_file/0006/2614443/Standard-residential-tenancy-terms-Sch-1.pdf
- https://www.legislation.act.gov.au/a/1997-84/
- https://www.act.gov.au/housing-planning-and-property/renting/rental-laws-in-the-act
- https://www.act.gov.au/__data/assets/pdf_file/0006/2608620/The-Renting-Book-January-2025.pdf
- https://www.act.gov.au/housing-planning-and-property/renting/before-renting
- https://www.act.gov.au/housing-planning-and-property/renting/starting-a-tenancy
- https://www.act.gov.au/housing-planning-and-property/renting/during-a-tenancy#Landlord-rights-and-responsibilities
- https://www.act.gov.au/law-and-justice/law-reforms/changes-to-residential-tenancy-laws
- https://www.legalaidact.org.au/sites/default/files/files/publications/Rights_and_Obligations_31_March_2023.pdf
- https://www.act.gov.au/housing-planning-and-property/renting/ending-a-tenancy
- https://www.act.gov.au/__data/assets/pdf_file/0006/2608620/The-Renting-Book-January-2025.pdf
- https://www.act.gov.au/housing-planning-and-property/renting/unit-title-rental-certificate
- https://www.legalaidact.org.au/sites/default/files/files/publications/Rights_and_Obligations_31_March_2023.pdf
- https://eeccertified.org.au/find-a-certified-expert/?_sft_certification=cii&_sft_location=act
- https://esa.act.gov.au/sites/default/files/wp-content/uploads/smoke-alarms-ver2.pdf
- https://yoursayconversations.act.gov.au/expanding-rights-renters/rent-bidding
- https://www.accesscanberra.act.gov.au/__data/assets/pdf_file/0004/2299207/Access-Canberra-Electrical-Inspections-Rental-Property-Thermal-Insulation-Installation.pdf
- https://www.act.gov.au/__data/assets/pdf_file/0007/2377249/Condition-and-Responsibility-Guide.pdf
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