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Explained: Tenant Compensation For Inconvenience in NSW

June 21, 2023
tenant compensation for inconvenience nsw

Key takeaways:

    • If you unlawfully terminate your lease, you will have to pay compensation fees.

    • If you include a break clause in your contract, you will not have to pay additional fees.

    • Before you vacate the premises, hand in a 21-day notice to your landlord.

Do you need information on tenant compensation for inconvenience in NSW?

You can ask for compensation if your landlord breaches your tenancy agreement in New South Wales. Did you know that a lack of repairs is one of the most common issues between landlords and tenants?

If you are moving because of an inconvenience, you can ask your landlord for tenant compensation for inconvenience in NSW. It is lawful for you to seek compensation. And to help you out, we’ll cover the main landlord responsibilities here.

Tenant compensation for inconvenience NSW

tenant compensation for inconvenience nsw

If you need to have urgent repairs done on the premises, you should contact your landlord, preferably in writing. But sometimes you may contact your landlord, and they may not do anything about the repairs. If that is what you are dealing with, we advise you to fix the problem, especially if it is a major issue.

But before you do that, make sure you inform your landlord. It is illegal to make any repairs without your landlord’s consent.

It is also advised that you give your landlord written notice. Additionally, ensure to keep a copy of the written notice for yourself for future reference. If you have told your landlord about the needed repairs and they do not respond, go ahead and fix your issue, especially if the repairs involve stuff like smoke alarms, leaking roofs, or gas leaks—these are urgent repairs that need immediate attention.

Also, if the repairs are non-urgent, like replacing light bulbs, you can do that yourself, but you can ask for your money back shortly. However, we recommend that you do not spend up to $1000 on repairs. Your landlord only has to pay that amount to you in compensation.

But what if the landlord won’t make repairs? Keep reading to learn more.

Can the landlord be entitled to compensation?

Are you wondering if landlord insurance exists? You will only pay your landlord compensation in certain situations, for instance, when the fixed-term tenancy agreement is terminated by the tenant. However, you will only compensate your landlord if you terminated the fixed-term agreement unlawfully. If you are wondering when it is lawful to terminate a tenancy contract, please read the next sections.

Tenant terminates a fixed-term agreement

Have you found yourself asking what damage is the landlord’s responsibility? If you terminate your lease lawfully, you don’t have to pay your landlord a single cent. All you will have to do is pay rent up until the time you terminate your contract.

For you to lawfully terminate your lease agreement, your landlord must have breached your tenancy agreement. You will not be required to pay rent for months you have not used. Your landlord is not entitled to that. If that is not the case, you will be required to pay your landlord’s compensation fees.

Tenant terminates lease agreement unlawfully

If you unlawfully terminate your residential tenancy agreement, you will have to pay your landlord’s compensation fees. If you do any of the following, you are unlawfully terminating your contract:

  • Leave the premises without telling the landlord or handing him a written notice
  • Stop paying rent

If you perform any of the above actions, the landlord will be entitled to compensation fees. However, the amount of compensation fees you will pay to the landlord depends on whether or not both parties agreed to a break-free.

If you have a break-free clause in your tenancy agreement that allows you to terminate your contract before the stipulated time, you can leverage it in this instance. I highly recommend that you include a break-free clause in your contract because you can never tell what you will want in the future. Perhaps you got a job in another state and you have to move. Or you found and purchased a lovely apartment in a quiet area, and you want to move there.

Whatever the case may be, having a break-free clause in your tenancy agreement can be very helpful. If you have a break-free clause in your lease agreement, you will know exactly how much you have to pay your landlord in compensation.

How much do I pay my landlord in compensation?

tenant compensation for inconvenience nsw

I’m sure you must be wondering how much you have to pay your landlord in compensation. I have researched and highlighted a few situations where you will have to compensate your landlord. Below is a quick highlight of what you should be looking to pay in NSW:

  • If your lease agreement is less than three years, the amount you will pay in compensation depends on when you terminated the agreement.
  • If you terminate the agreement within the first half of the lease agreement, you will have to pay six weeks’ rent as compensation to your landlord.
  • On the other hand, if you terminated the contract within the second half of the tenancy agreement, you will pay four weeks’ rent as compensation.

You must be thinking, “But that is too much money just to terminate my contract. Wait till you read what happens when you do not include a break-free clause.

If you did not include a break-free clause in your lease agreement, the civil and administrative tribunals decide what you will pay as compensation. But in cases like these, it never goes well for the tenant. The civil and administrative tribunal usually asks the tenant to pay almost equal to the amount you will have to pay as rent; until the end of the contract.

Generally, terminating a lease contract unlawfully favours the landlord more. That is because the landlord has to mitigate losses. But do not get discouraged yet, there is still a hook on that. The landlord also has to make sufficient efforts to find another tenant to replace you.

If the landlord finds a tenant, you will only pay compensation up till the moment the agreement with the new tenant starts. But adding a break-free clause to your agreement is the best option. If you have a break-free clause, you will not pay a cent more than the required amount.

tenant compensation for inconvenience nsw

People also ask

What responsibilities do landlords have?

The landlord has several responsibilities in Australia. One of them is to maintain the property in a similar state as when the tenant moved in. 

How can I lawfully terminate a tenancy contract?

You can legally terminate a contract by handing your landlord a 21-day written notice of your intentions to vacate the premises. Once you take this step, your landlord will not be entitled to any compensation.

You only have to pay rent up until the time of termination. However, you are also entitled to compensation if it fits your situation. If your landlord unlawfully terminates your contract before the fixed term, you will be entitled to compensation. Your landlord will have to compensate you for vacating the premises.

The cost your landlord will have to cover includes movers, the bond and utility connections. You will enjoy more compensation fees if your landlord terminated the contract early. But if you are moving due to inconveniences, you can receive tenant compensation for inconvenience in NSW. 

When is damage a landlord’s responsibility in NSW?

There are several situations where damage is a landlord’s responsibility in Australia. In general, property damage that relates to wear and tear is the landlord’s responsibility. However, things like malicious or accidental damage caused by the tenant are solely the tenant’s responsibility. 

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