The Law Handbook 2024

Chapter 6.1: Tenancy 479 Director of Housing service charges TheDirector of Housing (and organisations receiving funding from the Office of Housing) can charge for water, central heating, laundry and utility services provided with the premises. This only applies where it is not possible or practical to accurately measure the use of the service or facility. The service charge cannot be greater than the cost of providing the service or facility (s 57 RT Act). If the Director of Housing wants to introduce or change a service fee, it needs to notify the renter and provide details of the change in cost (s 57 RT Act). The renter can apply to VCAT for an order to make the Director of Housing withdraw or vary a service fee (s 57. Taxes and rates The rental provider must repay the renter for any rates or taxes payable for the premises that are recovered from the renter by a public statutory authority (e.g. a local council) unless the rental agreement is for a fixed term that exceeds one year (s 58 RT Act; cf s 53 RT Act, which provides that the rental provider is liable to pay all the rates and taxes for the property regardless of the length of the rental agreement). (See Hescon Holdings Pty Ltd v Musgrave (Residential Tenancies) [2019] VCAT 233.) Duties of rental providers and renters Overview of renter’s duties The RT Act (s 208) differentiates between breaches of a ‘duty’ provision of the Act and other breaches (s 3). If a rental provider believes that a renter is in breach of a RT Act duty provision, the rental provider may serve the renter with a Breach of Duty Notice (s 208). Renters also have the same rights in relation to rental providers when they breach their duties. A Breach of Duty Notice template is available on CAV’s website (www.consumer.vic.gov.au) . A Breach of Duty Notice does not prove that a breach has taken place, but these notices are evidence that an allegation of a breach has been communicated. If found to be true, valid and proven, a Breach of Duty Notice can enable a party to obtain a compliance order or compensation. In some cases, successive breaches can lead to a Notice to Vacate that may terminate the rental agreement. A Breach of Duty Notice can only be served if the rental agreement has not already been terminated. Under the RT Act, the grounds for a rental provider to serve a Breach of Duty Notice are when: • the renter fails to permit entry when entry is sought in accordance with the RT Act (s 89); • the renter uses/permits others to use the premises in a way that causes a nuisance (s 60(1)); • the renter uses or permits others to use the rented premises or common areas in any manner that causes an interference with the reasonable peace, comfort or privacy of any occupier of neighbouring premises (s 60(2)); • the renter or their visitors intentionally or negligently damage the rented premises or common areas (s 61); • the renter fails to keep the rented premises in a reasonably clean condition and in the same condition as when the renter gained possession of the premises, taking into account fair wear and tear (s 63); • the renter has installed fixtures or has altered, renovated or added to the premises (in a way that required consent) without first getting the rental provider’s consent (s 64); • the renter has failed to restore the property to its condition, if modifications have been made, unless the rental provider has agreed this does not need to be done (s 64); • the renter has changed a lock in a master key system (when consent was needed) without the rental provider’s consent or without a VCAT order (s 70); • the renter has failed to give the rental provider a key to a changed lock (ss 70, 70A, 70B); or • the renter has failed to perform their safety responsibilities (s 63A). Rental providers claiming compensation for breach of duty must prove they suffered loss caused by the breach. Renter’s duty to not cause damage Renters have a duty to not intentionally or negligently damage their rented premises or the common areas (e.g. communal laundries and car parks). Renters are not responsible for damage that is beyond their