We have recently received questions from some clients who have been notified by their landlord of a rent increase while still within the fixed term of the lease. Some landlords have even “threatened” that if the tenant doesn’t accept, they will sell the property. Is this lawful?

Given that this is a very common situation that anyone renting in Australia may encounter, today we will discuss the legal knowledge you need to know about renting in NSW.

While still within the lease term, can the landlord increase the rent?

According to Fair Trading, if the fixed term is less than 2 years, rent can only be increased during the fixed term if the lease contains a clause specifying the amount of the increase or the method for calculating it, and no written notice of the increase is required. However, Fair Trading reminds that the clause must not contain vague wording such as “according to the market rate” or “according to the rate of inflation”; it must be specific and detailed.

If the fixed term is 2 years or more, or if there is no fixed term (for example, the fixed term has expired or no fixed term was stipulated), then rent can only be increased once in any 12-month period, and the landlord must give the tenant at least 60 days’ written notice.

The landlord says they’re going to sell the house — does the tenant have to move out?

During the lease term, in addition to possible rent increases, another common issue tenants may face is the landlord planning to sell the property. If the house is being sold, does the tenant have to move out?

First, it should be understood that selling the property is the landlord’s lawful right. Whether or not the lease is still in effect, the landlord has the right to sell the property. But tenants don’t need to worry either — as the old saying goes, “a sale does not break a lease”, and the same principle applies in Australia.

When the landlord puts the property on the market, the tenancy agreement remains in effect, and even after the property is sold, the lease remains valid. In other words, even if the landlord changes, the tenant still has the right to continue living in the property.

In addition, there are some other common questions that almost every renter will encounter, which we will also briefly address.

During the tenancy, can I make alterations to the property?

Many tenants are very cautious about making alterations to the property, fearing that their bond will be withheld when they move out. But in fact, minor alterations to a certain extent are permitted. For example, if a tenant wants to drill a hole in the wall or change the wall colour, this is allowed, but the tenant must notify the landlord or property manager in advance, and must ensure that when they move out the wall is patched up and restored to its original colour.

If the alterations are more substantial, the tenant must obtain the landlord’s written consent or the lease must permit it. If the landlord refuses, they must provide a reasonable reason — for example, the alteration involves a structural change, or is not in keeping with the property itself, etc.

However, for very minor alterations, the landlord has no grounds to refuse. Fair Trading provides the following examples:

• Securing furniture to a non-tiled wall for safety reasons

• Fitting a child-safety latch to an external gate of a single-dwelling property

• Installing fly screens on windows

• Installing or replacing internal window coverings (such as curtains)

• Installing anti-slip pegs or cord guides to secure curtains or curtain cords

• Installing child-safety gates in the property

• Installing window safety devices to ensure child safety (excluding strata-title

buildings)

• Installing handheld shower heads or lever-style taps to make things easier for the elderly

or people with disabilities

• Installing or replacing picture hooks, driving nails, or turning in screws to hang pictures, etc.

• Installing telephone lines or connecting to the internet

• Planting vegetables, flowers, herbs or shrubs in the garden

• Installing an outdoor wireless movable security camera

• Applying anti-shatter film to windows or glass doors

• Alterations that will not cause damage or permanent change to the surfaces, fixtures or structure of the property.

If the landlord restricts my activities within the property, is this a breach?

If the landlord or agent discriminates against you on the basis of race, age, disability, sex, sexual orientation, marital status or pregnancy, that is unlawful.

However, Fair Trading points out that anti-racial-discrimination laws do not protect smokers. As long as the landlord is not discriminating against the tenant on any of the grounds listed above, they are free to choose their tenant — for example, they may not want to rent to someone who smokes, keeps pets, does heavy stir-frying when cooking, or has a poor rental history, and this is not unlawful.

If something in the property breaks, should the landlord repair it, or is it the tenant’s routine maintenance?

As a tenant, you have a responsibility to take care of the property and keep the house clean and in good condition. If the property has a yard, lawn and garden, you must also keep these areas tidy.

However, if repairs are needed or damage occurs, you must notify the landlord or agent as soon as possible. Unless the damage was caused by the tenant, the landlord will be responsible for arranging and paying for the repairs.

If it is an urgent repair — such as a burst water supply, a blocked or broken toilet, a gas leak, or a dangerous electrical fault — and it can’t wait for the landlord or agent to fix it, the tenant can arrange the repairs themselves and be reimbursed for the repair costs within 14 days of making a written request, up to a maximum of $1,000.

Finally

Of course, all of these rights are conditional on the tenant having signed a valid contract when moving in — only then can they use the law as a weapon to protect themselves when a dispute arises. Whether for renting or any other matter, as lawyers we always advise our clients to sign an agreement in advance where possible, so as to protect their rights from being infringed.