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Property → Residential tenancies → Landlord’s ability to require tenant to pay money
Overview — Landlord’s ability to require tenant to pay money

Catherine Hallgath, Partner, Mills Oakley Lawyers

Peter Moran, Principal, Norton Gledhill (Vic)

Luckbir Singh, Partner, MacDonnells Law (Qld)

Gary Thomas, Partner, Tottle Partners (WA)

Philip Page, Partner, Mellor Olsson (SA)

Tim Tierney, Principal, Tierney Law (Tas)

Currently updated by Lyn Bennett, Consultant, Minter Ellison (NT)

Originally authored by Leon Loganathan, Partner, Ward Keller (NT)

Christine Murray, Partner, Meyer Vandenberg Lawyers (ACT)

Landlord’s ability to require tenant to pay money

Under s 24 of the Residential Tenancies Act 2010 (NSW), a landlord may only require or receive from a tenant before, or when the tenant enters into an RTA, the following payments:

  • holding fee;

  • rent; and

  • a rental bond.

This section discusses the items above, the procedure for dealing with the money once it is received and the other costs and charges a landlord may require a tenant to pay for under an RTA.

The above does not apply to Victoria in relation to when a landlord can receive rent from the tenant. Under s 40 of the Residential Tenancies Act 1997 (Vic), a landlord may not receive more than 1 month's rent in advance.

In Queensland, pursuant to s 59 of the Residential Tenancies and Rooming Accommodation Act 2008 (Qld), a landlord may only require the following payments from a prospective tenant for an RTA:

  • a key deposit (being an amount paid as a deposit to enable the prospective tenant to enter and inspect the premises);

  • a holding deposit;

  • a rental bond; and

  • rent.

In Western Australia, under s 27 of the Residential Tenancies Act 1987 (WA), a landlord may only require the following payments from a tenant or prospective tenant:

  • a security bond;

  • rent;

  • an option fee; and

  • any other payment authorised by the Act or regulations.

Before or during the first 2 weeks of an RTA, a landlord must not require a tenant to pay more than 2 weeks' rent in advance. After that, a tenant may be required to pay rent in advance: s 28(1) . However a landlord must not require a tenant to pay rent (except the first rental payment) until the tenancy period for which any previous rental payment has been made has elapsed: s 28(2) .

In South Australia, under ss 53 and 54 of the Residential Tenancies Act 1995 (SA), the landlord is only permitted to require or receive from the tenant rent and a security bond. The amount of rent required to be paid in advance may not exceed 2 weeks before the end of the first 2 weeks of the tenancy. Under s 61 of the Act, the permitted amount of a security bond depends on the amount of the rent and may be between 4 and 6 weeks rent. Option fees may be payable in some circumstances but, if the agreement is subsequently entered into, must be applied towards the rent.

In Tasmania, under s 17 of the Residential Tenancy Act 1997 (Tas), a landlord may only require or receive from a tenant before, or when the tenant enters into an RTA, the following payments:

  • holding fee;

  • rent; and

  • a rental bond.

Division 2 of the Act discusses the items above, the procedure for dealing with the money once it is received and the other costs and charges a landlord may require a tenant to pay for under an RTA.

In the Northern Territory, s 24 of the Residential Tenancies Act (NT) states that a landlord is prohibited from requiring, or receiving from a tenant, a payment, other than rent or a security deposit (or both), for a tenancy, an option to enter into an agreement or the renewal or extension of a tenancy. Likewise, a landlord cannot charge a tenant for the preparation of a tenancy agreement: s 23 . Pursuant to s 39 of the Residential Tenancies Act (NT), also note that a landlord must not require from a tenant payment of more than 1 rental payment period in advance.

In the ACT, a landlord may only require the following payments from a prospective tenant for a residential tenancy agreement:

  • a rental bond of not more than the first 4 weeks of rent due under the residential tenancy agreement (s 20 of the Residential Tenancies Act 1997 (ACT)); and

  • rent: s 15 .

See Types of payment a landlord can request from a tenant.

See Holding fee.

See Outgoings.

See Rent increases and rent reductions.




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