How Much Rent Should I Be Paying? (ACT)

In the ACT, residential tenancies are governed by the Residential Tenancies Act 1997 (RTA). Among other things, the RTA contains restrictions on how much rent can be charged, how often rent can be increased and what steps can be taken if there is a dispute about the rental rate or the non-payment of rent. This page deals with how much rent a tenant should be paying in residential premises in the ACT.

Ad must state how much rent is payable

Under section 11AC of the RTA, a person who advertises a residential property for lease in the ACT must advertise it at a fixed rental rate. It is an offence, punishable by a fine of five penalty units, to advertise a property without stating the rental rate.

It is also an offence, under section 11AD of the RTA, to solicit rent bidding on a residential property. This offence can attract a fine of 20 penalty units. However, if a person offers a higher amount of rent than the advertised rate without solicitation by the lessor, a landlord or agent is allowed to accept the offer.

Rent and bond only

A lessor must not accept any payment other rent and bond in relation to the leasing of a residential property. Only one bond may be charged per residential tenancy and the bond amount must not be more than four weeks’ rent.

How much can rent be increased?

If a residential tenancy agreement is for a fixed term, the rent may not be increased during this term unless the increase is stated in the rental agreement.

When rent is increased, it may only be increased by the prescribed amount unless:

• the agreement states that the increase is allowed
• the tenant has been given eight weeks’ notice of the increase and has agreed in writing to the increase; or
• ACAT has approved the increase.

The prescribed amount for a rent increase is set out in section 5A of the Residential Tenancies Regulations 1998 and can be calculated here.

A lessor may apply to ACAT for an order allowing a rental increase of more than the prescribed amount.  

A tenant may apply to ACAT to review a proposed rental increase by lodging an Application for Resolution of Tenancy Dispute. This application must be lodged at least two weeks before the proposed rent increased is to come into effect.   

Rent reductions

A tenant may also apply to ACAT for a reduction of their rental rate on the basis that their enjoyment of the property has diminished because of any of the following:

• Reduced ability to use an appliance, furniture, facility or service because of the lessor’s actions;
• The loss of use of all or part of the premises;
• Interference with the tenant’s quiet enjoyment or use of the premises by the lessor or as associated person.

A tenant may also apply for a rent reduction on the basis that the property does not comply with the minimum housing standards.

ACAT may make an order reducing a tenant’s rent from the day on which their enjoyment of the property was reduced or the date from which the [property did not comply with the minimum standards for a period of up to 12 months.

Failure to pay rent

If a tenant fails to pay rent that is due under a rental agreement, the lessor may serve them with a termination notice requiring them to vacate the premises. If the tenant does not vacate the premises in accordance with the order, the lessor may seek a termination and possession order from ACAT.

ACAT may make a termination or possession order when a landlord applied for this order. Alternately, it may make a payment order requiring a stated amount of rent to be paid.  

ACAT may refuse to make either order if:

• rent has been paid and ACAT consider that future rent is likely to be paid as soon as it becomes due; or
• ACAT consider it is just and appropriate to refuse to make an order.

If ACAT makes a termination and possession order, it must suspend the order for a period of three weeks if it considers it likely that not doing so would cause the tenant significant hardship that is greater than the hardship suffered by the lessor by suspending the order.

If you require legal advice or representation in any legal matter, please contact Go To Court Lawyers.