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Can the Landlord Demand Rent For Common Property in Victoria Law?

April 16, 2024
Can the landlord demand rent for common property in Victoria law

Key takeaways:

  • The landlord cannot demand rent payments for a common property without written notice or agreement.
  • The landlord is responsible for all the basic services in the rented premises.
  • Tenants are responsible for paying rent according to the rental agreement.
  • The landlord can enter the common property without letting the tenants know but must let tenants know when altering the common property.

Can the landlord demand rent for common property in Victoria? The answer is a little complex.

In Victoria, the relationship between tenants, landlords, and property managers is governed by specific laws that outline the rights and responsibilities of each party.

Today, we’ll explore the laws around common property within strata schemes—areas shared by all residents, like gardens, pools, and gyms—and clarify what costs landlords can legally pass on to tenants.

From the outset, it’s important to note that while landlords have certain entitlements, there are clear restrictions to prevent the unfair treatment of tenants.

For instance, while property managers can access common areas without tenant consent under specific conditions, they cannot arbitrarily charge tenants for these spaces.

This article will cover:

  • What constitutes common property
  • The responsibilities of an owner’s corporation
  • How rental charges should be handled according to Victorian law

Read on to ensure you are fully informed about your rights and responsibilities in dealing with common property and find out more about rental property standards in Victoria below.

What is considered common property?

Common property is any property that all scheme owners use in the owner’s corporation. The common property may include:

  • Land and buildings
  • Common facilities, such as swimming pools and tennis courts (if individual tenants do not own these)
  • Common assets, such as security gates and fences on streets
  • Services provided by an external provider, for example, water supply or waste collection
  • Property owned by one or more of the strata body members. (Strata members are the people who own and manage your apartment building) or their associates.
  • Any part of your apartment building that belongs to other than your strata body members
  • Anything else which has been added to or altered in any way by your strata body members

What is common property in the strata act?

Common property is any area of the building or lands your owner’s corporation owns. Common property can be a swimming pool, lift, parking lot, or garden.

It doesn’t matter if it’s been built with money from your strata scheme; as long as everyone shares in its use and maintenance, you’re responsible for it.

The owner’s corporation has to maintain the common property in good condition. They are responsible for making it fit for human habitation (and this means more than just keeping it tidy).

If there are problems with something on common land that affects other residents’ ability to live there safely, then they should contact their landlord before doing anything drastic like cutting down trees.

This could result in fines for both parties involved if someone gets hurt due to poor maintenance work done by someone else (or themselves).

How can landlords demand rent for common property in Victoria?

If a landlord wants to charge rent for common property in Victoria, they can only do so by the mutual rental agreement. The landlord cannot force a tenant to pay rent for the common property by force.

The landlord has to give notice to the tenant before asking for rent for the common property in Victoria.

Licence agreement to occupy property

A licence agreement is a written agreement between your landlord and yourself. It sets out what happens when you rent the property and how much you pay.

Both parties must sign this agreement because it gives them legal rights over their property.

The landlord may demand rent for the property under a licence agreement. It is called a licence agreement to occupy the property. It means you have agreed to let the landlord use your home if he pays you some money.

If you agree to let someone else live in your house, it’s called an ‘occupancy.’ You can’t change tenants without telling anyone or paying them extra rent.

The lease states that you must not do anything that would cause damage or disturbance to your neighbours or other people who live in the building.

You must also ensure that you do not disturb their activities, such as playing games in shared areas, using loud stereos, or making noise late at night when everyone else is trying to sleep.

If you breach these conditions, your landlord may have grounds for evicting you from their property.

However, Owners Corporations should not ask tenants directly to pay for the services rendered to the common property since this will amount to negligence of their duties.

Moreover, it also guides about the minimum notice periods in the rental laws, ending of a fixed term lease, and long-term rental agreements to both the landlord and the tenant. The tenant is responsible for paying rent only.

Payment for services

You may wonder if the landlord can ask you directly to pay for the services rendered to your building. The answer is yes, but only if there is an agreement between them and you. If not, then no.

The landlord cannot demand rent for common property such as lights, air conditioning, and lifts unless it belongs to them individually. Moreover, the rental provider must pay for the urgent repairs and provide basic needs. 

They include installing hot and cold water, electrical safety switches, an energy-efficient heater, an existing fixed heater, a gas space heater in the living area, power outlets, lighting circuits, etc. However, the non-ducted air conditioner is optional and depends on the rental providers.

However, where a building owner has been provided with electricity at their own expense because of non-payment by tenants (e.g., in an apartment block). It is also one of the legal responsibilities of the rental provider to make a general inspection of the rental property.

They may charge reasonable amounts from those who do not pay their bills on time or otherwise fail to use these facilities without permission from other users – though this should only happen once per year at most during times when residents are expected to live peacefully together in harmony.

Tenants are responsible for rent payments, and other legal responsibilities of rented premises go to the rental providers and local council.

Activities in the common property

Moreover, the landlord cannot do some activities on their common property without the knowledge of the tenants. For example, landlords cannot change the building code or locks of external entry doors of a rental property without letting the residents know.

If it happens, the tenants can think of it as an order of eviction without any notice to vacate, and they can report it against them according to the renting laws.

Multiple legal services are working for tenants’ rights in the rental property, such as Consumer Affairs Victoria and Victoria Legal Aid. They help tenants with their rental agreements. You can also seek help from the real estate agent about the tenancy agreement or any long-term rental agreement.

Conclusion: Can the landlord demand rent for common property in Victoria law?

In Victoria, the landlord can’t demand rent for the common property if the law prohibits this. So, if you were interested in running a business from an apartment in Melbourne, now you know.

A landlord can ask for rent for the use of building facilities, even if there is an agreement between them and tenants.

However, landlords cannot demand rent for the common property if the law prohibits this.

FAQs on ‘can the landlord demand rent for common property in Victoria’?

What are the new rules for landlords in Victoria?

The new rules for landlords in Victoria, which came into effect in 2021, aim to make renting fairer and safer. Key changes include:

  1. A ban on rental bidding to prevent competitive rent price escalation.
  2. Introduction of new minimum standards for rental properties to ensure safe and livable conditions.
  3. Prohibition of evictions without a specified reason, enhancing security for tenants.
  4. Permission for renters to make allowable modifications, increasing flexibility for tenants to make homes suitable for their needs.
  5. Mandatory requirements for landlords to address urgent repairs promptly.

These changes apply to all rental arrangements, including private rentals, caravan parks, residential parks, and rooming houses, covering the entire lifecycle of a rental agreement.

Can someone live with you without being on the lease in Victoria?

The individual listed on the agreement is required to obtain written consent from the rental provider before subletting. Rental providers are obligated to grant permission for subletting unless there is a valid reason for refusal.

You can read more about this in Soho’s guide answering Can someone live with you without being on the lease in Victoria?

Under what circumstances can a landlord end a tenancy in Victoria?

For a landlord to end a tenancy in Victoria, specific situations must have occurred, such as significant violations by the tenant or when the fixed term concludes.

How do I evict a tenant without a rental agreement in Victoria?

To evict a tenant without a rental agreement in Victoria, the process is a bit more complex. Without a tenancy agreement, a tenant cannot receive a section 21 eviction notice. In Victoria, a section 21 notice is only applicable for fixed-term agreements.

Instead, the landlord must issue a section 8 notice, which is used to terminate a periodic agreement, and it does not require a reason for eviction.

Disclaimer: The information provided herein is based on our best understanding of tenancy laws and may not reflect the most current legal developments or specific regional laws. Readers are encouraged to consult a qualified legal professional for advice on their specific circumstances. The authors and publishers of this article assume no responsibility for errors, omissions, or any actions taken based on the content of this article. However, if you would like to point out an error, kindly contact us.

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