residential tenancy
📖 What is residential tenancy? Meaning and definition
A residential tenancy refers to the legal arrangement for renting a property primarily for someone to live in. This type of tenancy is distinct from a commercial tenancy and falls under the specific regulations of the Residential Tenancies Act 1986 (RTA). The Tenancy Tribunal has jurisdiction over disputes arising from residential tenancies, such as applications for rent arrears, compensation, or bond release.
For an agreement to be considered a residential tenancy, the primary use of the premises must be for living. Even if an agreement contains statements suggesting it is a 'commercial contact' or for a 'commercial property,' the Tribunal will look at the actual use of the premises. If the property is being tenanted for monetary gain and used as a residence, it will typically be classified as a residential tenancy.
There are specific obligations for both landlords and tenants under a residential tenancy, particularly at the end of the agreement. For instance, tenants are generally required to give 28 days' notice before ending the tenancy and must leave the premises reasonably clean and tidy, remove rubbish, and return all keys. Landlords can apply to the Tribunal for remedies like rent arrears or cleaning costs if these obligations are not met.
However, certain types of accommodation, such as those providing temporary or transient accommodation for periods of less than 28 days, may fall outside the Tribunal's jurisdiction. The duration and intent of the stay are key factors in determining whether an agreement constitutes a residential tenancy or an exception under the Act.
📋 Requirements
- The premises must be used for residential purposes.
- The tenancy is for monetary gain.
- The accommodation is not temporary or transient, typically for periods of 28 days or more.
📝 Procedure
- The landlord or tenant files an application with the Tenancy Tribunal.
- Parties are notified of the hearing by email and text.
- A hearing takes place, potentially by telephone, where parties present their case.
- The Tribunal issues an order based on the evidence or mutual consent, such as for bond release or payment of arrears.
💡 Examples
- A family rents a house for a year, paying weekly rent, which is a clear residential tenancy.
- A property owner claims an agreement is commercial, but the tenant lives there, leading the Tenancy Tribunal to rule it a residential tenancy.
- A tenant gives only one day's notice to end their tenancy, failing to meet the 28-day notice period required for a residential tenancy, and is ordered to pay rent in lieu of notice.
- After a tenancy ends, the landlord applies to the Tribunal for the bond to cover cleaning costs because the tenant did not leave the property reasonably clean and tidy, as required by their residential tenancy obligations.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What is the difference between a residential and a commercial tenancy?
A residential tenancy is for living in a property, while a commercial tenancy is for business purposes. The Tenancy Tribunal has jurisdiction over residential tenancies, even if an agreement tries to label itself as commercial, if the property is actually used for living.
Does the Tenancy Tribunal handle all rental agreements?
No, the Tenancy Tribunal primarily handles residential tenancies. It generally does not have jurisdiction over premises providing temporary or transient accommodation for periods of less than 28 days at a time.
What are a tenant's responsibilities at the end of a residential tenancy?
At the end of a residential tenancy, a tenant must leave the premises reasonably clean and tidy, remove all rubbish, return all keys and security devices, and leave all chattels provided for their benefit, as outlined in the Residential Tenancies Act 1986.
How much notice does a tenant need to give to end a residential tenancy?
Under the Residential Tenancies Act 1986, a tenant is typically required to give 28 days' notice to end a residential tenancy. Failure to do so may result in the tenant being liable for rent in lieu of notice.
Can a landlord and tenant mutually agree on bond release?
Yes, a landlord and tenant can reach a written settlement, such as a deed, to agree on matters arising from the tenancy, including the release of the bond. The Tenancy Tribunal can then issue an order based on this consent.
What if a tenant doesn't attend a Tenancy Tribunal hearing?
If a tenant has been properly notified of a hearing by email and text but does not attend or answer calls, the Tenancy Tribunal can continue the hearing in their absence, as per section 92 of the Residential Tenancies Act 1986.