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Help – I Have A Problem Tenant! When Can a Landlord Take Legal Action Against a Tenant in the ACT?
Andrew Byrnes Law Group • Mar 12, 2020
Unfortunately, there are times when disputes or problems between landlords and tenants can only be resolved with legal action.
In this article, we’ll go over seven of these situations so that if you happen to be landlord of a residential property in the ACT working with a difficult tenant, you know what legal options you have available.
Let’s get started.
1. When rent is not paid on time
When tenants have not paid their rent on time, section 49 of the Residential Tenancies Act 1997 provides that a landlord to apply to the ACT Civil and Administrative Tribunal (“ACAT”) for a termination and possession order terminating the tenancy and providing possession of the property back to the Landlord.
However, a termination and possession order is only possible after a termination notice has been served on the tenant and the tenant has not vacated the premises in accordance with that termination notice.
Landlords can also sue the tenant for the rent owed. The laws are set up in such a way that terminating the tenancy is the first thing that the ACAT will consider ordering so that the Landlord does not continue to accrue unpaid rent.
This is because evicting a tenant that is not paying their rent allows a landlord to take steps to mitigate their losses first, which is an obligation on the person making a claim in a civil proceeding to not allow the situation to get worse than it needs to be. This duty is reflected in section 38 of the Residential Tenancies Act 1997.
2. When the tenant abandons the premises
A similar situation can occur when a tenant abandons a property before their fixed-term lease is up. Section 62 of the Residential Tenancies Act 1997 allows a landlord in this circumstance to apply for compensation for the loss of rent lost up to the end of the lease term.
Tenants who move out before their lease has ended may force the landlord to find a new tenant to occupy the abandoned property. The costs incurred in replacing the old tenant with a new one (advertising and giving a right to occupy the premises) can also be recovered as compensation ordered by the ACAT.
3. When utility bills are not paid
In certain circumstances based on the particular situation between the landlord and the tenant, if utility bills have not been paid by the tenant and the landlord has had to pay these costs, then the landlord may have the option to sue the tenant for compensation reflecting the unpaid utility bills.
4. When the property is damaged
When there is property damage that can be attributed to the tenant’s deliberate actions or negligence, this may be in breach of clause 63 of the Standard Residential Tenancies Terms contained in Schedule 1 of the Residential Tenancies Act and which are ordinarily incorporated into residential leases in the Australian Capital Territory (“the Standard Residential Tenancies Terms”).
If this occurs, a landlord may be able to issue a termination notice and then apply in the ACAT for a termination and possession order pursuant to section 48 of the Residential Tenancies Act 1997.
The cost of repairing the damage caused by the tenant may be recoverable as part of this application to the ACAT.
5. When the tenant’s property is left behind and becomes the landlord’s responsibility
When a tenant moves out of the property or has been evicted but has left behind some of their possessions, the landlord will be the one who has to dispose of these possessions so that the next tenant can move in. Disposing of certain types of items can be costly, and landlords may also be able to recover these expenses by filing a lawsuit against the old tenant.
6. When the property is used for illegal activities
If your property is being used for any type of illegal activity by the tenant, this may be in breach of clause 70 of the Standard Residential Tenancies Terms.
If this occurs, a landlord may be able to issue a termination notice and then apply in the ACAT for a termination and possession order pursuant to section 48 of the Residential Tenancies Act 1997.
7. When other terms of the contract or Standard Residential Terms are breached
Written residential tenancy agreements are ordinarily made, however, if they are not, the Standard Residential Tenancies Terms would apply to the residential tenancy.
The written agreement or the Standard Residential Tenancies Terms sets forth specific obligations that both the Landlord and the Tenant must adhere to.
If the tenant breaches certain terms of the agreement, a landlord may be able to issue a termination notice and then apply in the ACAT for a termination and possession order pursuant to section 48 of the Residential Tenancies Act 1997.
Final Words
Although some disputes that take place between landlords and tenants can be resolved with communication and informal agreement, there are times when legal action is necessary.
As the landlord, you have plenty at stake since your property could represent a primary source of income for you. Therefore, it’s vital to know what your legal options are so that you can prepare for these types of situations.
If you are an owner of a residential property who has a problematic tenant in the Australian Capital Territory, contact Andrew Byrnes Law Group. We are highly experienced dispute resolution lawyers who are skilled in handling residential tenancy disputes, and are well equipped to assist you with getting the best possible outcome in the most cost effective way possible.
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