Liability of tenants to pay rent at all times

Published: 16 March 2007.

There is no provision in the Residential Tenancies Act 1994 which allows a tenant to legally withhold payment of rent from a lessor. The Small Claims Tribunal may order that a tenant be allowed compensation or a reduction of rent for loss of amenities where the tenant makes such an application to the tribunal. The tribunal frequently hears submissions from tenants that they have stopped payment of rent because a lessor has refused to affect repairs.

The general policy of the tribunal in Brisbane is that at a hearing for termination on the grounds of non-payment of rent, the tribunal will not consider a submission from the tenant for compensation. There is a clear procedure that a tenant can adopt to have a grievance dealt with, either through conciliation with the RTA's Dispute Resolution Service or by the tribunal if the matter is deemed urgent. The tenant should take that course immediately a problem arises and not raise the issue only at the hearing for termination. In Brisbane this policy will be strictly enforced.

Rent receipts

The Residential Tenancies Act 1994 sets out clearly the obligation of a lessor or agent to provide receipts and rent records to tenants and the legislation creates an offence for failure to comply with the requirements.

Where a payment in made in cash and paid personally, a receipt must be given immediately. Further, the receipt must detail the rent period that the amount of rent tendered covers. The tribunal has unfortunately in recent months seen a number of receipts issued by agents which do not set out a "paid to date".
A copy of the tenant's rent payment record is required to be delivered to the tenant on request. Where there has been more than one agent handling the premises or an agent has taken over the management of the premises from the lessor, the full record of rent not just the record from the current agent should be produced.

When an agent takes over management the agent should receive from the lessor or the previous agent a complete copy of the rent record not just a "paid to date". A lessor or agent is required to keep these records for at least 12 months after the agreement has ended. Where these full records cannot be produced at a hearing the Tribunal may not accept the submission by the agent as to the date to which the rent is paid.

Bill Randall - Update ? Residential Tenancies Authority