Terminating a Residential Lease (ACT)

All Australian states and territories are currently seeing historically low rental vacancy rates, placing renters in a vulnerable situation where it is harder and more expensive than ever to secure accommodation. In response to the rental crisis, many jurisdictions have amended their residential tenancy laws to better protect the rights of tenants. One of the most significant changes that has been introduced is the removal of the right of a landlord to terminate a tenancy without specific grounds. This page deals with terminating a residential lease in the ACT.

Legislation

Residential leases in the ACT are governed by the Residential Tenancies Act 1997 and by the Standard Residential Tenancy Terms (which can be found in Schedule 1 of the Act).

2023 changes

The ACT Residential Tenancies Act 1997 was amended during 2023. Under the changes, a landlord can no longer terminate a tenancy at the end of a fixed term or during a periodic tenancy unless they have a specific reason.

Other changes to the Act include that lessors much not solicit rent bids and that properties must be advertised at a fixed rent.

Landlord terminating a residential lease

Division 4.4 of the Act sets out the situations where a lessor may terminate a residential lease.

With breach

A landlord can terminate a lease because of a breach by the tenant. If the breach is the failure to pay rent, the lessor may serve the tenant with a termination notice. If the tenant does not vacate the property, the lessor may apply to ACAT for a termination order.

If the breach is intentionally causing damage to the property or injury to the lessor, or behaving in a threatening or abusive manner towards the lessor, the lessor may apply to ACAT for a termination and possession order.

Without breach

A landlord can terminate a periodic tenancy where there has not been a breach by the tenant if:

• the lessor or their immediate family intends to live in the property (subject to an eight-week notice period)
• the lessor intends to sell the property (subject to an eight-week notice period)
• the lessor intends to reconstruct, repair or renovate the property and cannot do so while the tenant is living there (subject to a 12-week notice period)
• the lessor requires the use of the premises for a purpose other than for use as a home (subject to an eight-week notice period).

If a tenant is required to vacate a property for any of these reasons, they may vacate the property up to two weeks before the specified date (but must give the lessor at least four days’ notice).

With ACAT order

A lessor may terminate a lease with an order by ACAT on the basis that not terminating the lease would cause significant hardship to the lessor and that this hardship would be greater than the hardship caused to the tenant by the termination of the lease.

Tenant terminating a residential lease

Division 4.3 of the Act sets out the situations where a tenant may terminate a residential lease.

With breach

ACAT may terminate a lease if satisfied that the lessor committed a breach of the agreement that justifies the termination or because the lessor has failed to comply with their obligations under the Minimum Housing Standards.

For significant hardship

ACAT may terminate a lease if satisfied that the tenant would suffer significant hardship if it were to continue.

Injury or damage

ACAT may terminate a lease if satisfied that the lesser has caused serious danger to the premises or property of the tenant, has caused injury to the tenant or a member of their family, or has behaved in a way that is threatening or abusive towards the tenant.

False or misleading statements

ACAT may terminate a lease because it was entered into on the basis of false or misleading statements by the lessor.

Termination by agreement

A lessor and tenant can terminate a lease at any time by agreement.

Applying to ACAT

A party can apply to ACAT by lodging this form with all details and accompanying documents. If the application is urgent, this form should also be lodged. The matter will then be scheduled for a hearing at the end of which, ACAT will make a decision.  

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