The Australian rental market continues to heat up, and disputes between tenants and landlords may increase accordingly. Under the Residential Tenancies Act 2010 and the Residential Tenancies Regulation 2019, tenants have solid legal grounds to protect their rights throughout the tenancy. Today we look at what rights tenants are entitled to when a landlord sells the property during a fixed-term lease.

1. Prospective buyer inspections

The landlord or agent has the right to enter the property to show it to prospective buyers, but they must:

1. Give the tenant written notice at least 14 days before the first inspection.
2. Reach agreement with the tenant on the specific dates and time windows for the inspections.

The tenant cannot unreasonably refuse a request for an inspection or a proposed time, but the tenant may refuse to allow more than two inspections per week. If the tenant and landlord cannot agree on inspection times, the landlord may conduct no more than two inspections per week, provided that at least 48 hours’ notice is given to the tenant each time.

During an inspection, the tenant may be present, or may arrange for another person to attend on their behalf. If the tenant is not present, the security of the tenant’s belongings may be a concern. You can take out insurance in advance to protect your property. If your items are stolen or damaged, you can apply to the NSW Civil and Administrative Tribunal for compensation from the party responsible. When seeking compensation, the tenant must show that the damage or loss of property was caused by the landlord, agent, or other person authorised by them.

2. Open-House Inspections

During an open-house inspection, the property is kept open and not only prospective buyers but anyone may enter to view it. The tenant has the right to refuse an open-house inspection. The tenant may write to the landlord or agent to negotiate inspection time windows and obtain evidence that the attendees are genuine prospective buyers. Without the tenant’s consent, the landlord and agent must not enter to inspect the property before 8am or after 8pm, nor on Sundays or public holidays. If the inspection time goes beyond reasonable hours, the tenant’s consent must be obtained.

3. Cleanliness for inspections

The tenant must keep the property reasonably clean during the tenancy, but is not required to carry out extra cleaning or tidying specifically for inspections. However, in return for extra cleaning, you can negotiate a rent reduction with the landlord. Note that extra cleaning is not a compulsory obligation, and the landlord is not obliged to agree to a rent reduction. During the inspection period, the tenant may also take the opportunity to negotiate a reasonable rent reduction with the landlord. Although the landlord is not obliged to agree, this can be a reasonable basis for negotiating a reduction in rent.

The landlord and agent may take photos and videos of the exterior of the property. In the 28 days before the end of the tenancy or the listing of the property for sale, the landlord or agent may enter the property to take photos and videos once. Before doing so, the landlord or agent must:

1. Give the tenant reasonable notice.
2. Give the tenant the opportunity to remove their belongings from the frame of the videos or photos.

The landlord must obtain the tenant’s written consent before publishing any images that contain the tenant’s belongings, but the tenant must not unreasonably refuse. The landlord and agent may share photos of the property between themselves; if the sharing is for the purposes of inspection, maintenance, or repair, the tenant’s consent is not required.

If the landlord, agent, or other third party fails to comply with:

1. the maximum number of inspections or the agreed number of inspections;
2. providing notice within a reasonable period; or
3. the restrictions on entry times;

then the tenant may apply to the Tribunal for an order:

1. prohibiting the landlord or agent from entering the property (within three months of becoming aware of the breach); or
2. specifying or restricting the times and dates on which the landlord, agent, or other authorised third party may enter (within three months of becoming aware of the breach).

If the tenant refuses entry to the landlord, agent, or other authorised third party, the tenant will be in breach of the lease. In that case, the landlord may apply to the Tribunal for an order authorising entry to the property.

Final thoughts

The Australian rental market is extremely active, and the quality of agents and landlords letting out properties varies widely. We encourage everyone to understand the real state of the rental market and to actively protect their lawful rights.