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Renting in Tasmania
Costs

Entry Costs
Rent
Water Charges

Entry Costs

Limits to up-front costs

The only up-front costs which a tenant may be required to pay when entering into a tenancy are:

• a security deposit;
• rent in advance for the first payment period; and
• a holding fee.

 It is an offence for an owner to require or receive more than:

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Holding Fee

An owner may agree to hold a vacant property until a tenant is ready to move in. This is called a holding agreement. A holding agreement must be  for a period of greater than 7 days. The tenant may be required to pay a fee for this agreement. This is called a holding fee and is a payment in addition to a security deposit or rent.

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Security deposits

An owner may require a prospective tenant to pay a security deposit. The security deposit is a sum of money which the owner holds until the end of the tenancy to cover damage or losses caused by the tenant, or unpaid rent. The owner must supply a receipt for the security deposit which contains the following information:

• the name of the tenant;
• the amount of security deposit;
• the address of premises;
• the date of receipt
• the name and address of the owner.

If an owner requires a prospective tenant to pay a security deposit, the owner must provide the tenant with 2 copies of a condition report on or before the beginning of the tenancy.

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Condition reports

The condition report must state the general state of repair of the property and must be signed by the owner.

On receipt of the condition report, the tenant must sign it and return it to the owner within two days.

A condition report is evidence of the state of repair and condition of the property at the beginning of the tenancy.

When the tenancy ends, the owner is to return the security deposit to the tenant but may deduct any amount which the tenant owes, eg. unpaid rent, repair or cleaning costs.

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Owner may retain some or all of the security deposit 

If the tenant disagrees with the amount of the security deposit that is returned by the owner, the tenant may lodge an application with the Residential Tenancy Commissioner and request that the Commissioner make a decision about the matter.

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Rent

The rental agreement will specify a payment period, which is the time between each date that rent falls due. Once agreed at the beginning of the tenancy, the payment period cannot be changed unless both the owner and the tenant agree. A payment period must not be greater than 31 days.

Rent is payable in advance for each payment period. This means that if the payment period is 2 weeks, the tenant pays 2 weeks in advance for the first 2 weeks and another 2 weeks rent in advance when the payment period has expired.

If the tenant pays for rent in cash or by cheque the owner must give the tenant a receipt which contains the following information:

• the date rent was received;
• the name of the tenant;
• the address of the premises for which rent was paid; and
• the amount of rent paid.

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Increases in rent

During the tenancy, rent can be changed only if the written agreement allows for an increase, or if there is no written agreement.

To increase the rent the owner must give a written notice to the tenant specifying:

• the amount of the increase; and
• the day on which the increase takes effect.

An increase can only take effect:

• 60 days after notice of an increase is given;
• six months after the last increase in rent;
• six months after notice of an increase is given where the residential tenancy agreement commenced less than 60 days previously; or
• six months after an order from a magistrate relating to rent.

If the tenant believes a rent increase is unreasonable he or she may make an application to a magistrate to have the increase reviewed.  If the magistrate considers it unreasonable compared to similar properties in similar locations, he or she may make an order to change the increase.  (see Magistrates Court  information page)

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Water Charges

A property owner may only pass on a charge for water consumption where:

• a Council makes a separate charge for water consumption; and
• the premises is equipped with a device that calculates the amount of water used at the premises; and
• the residential tenancy agreement allows the owner to pass the water charge on to the tenant.

The tenant and the owner should note the water meter reading at the start and the end of the tenancy.  This should be recorded on the condition report.