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 In this fact sheet we will cover the law on rent payments, rent increases and what happens if you fall behind in rent.

Rent is the money a tenant pays in exchange for the right to occupy a rental property. The rent amount should be set out in the lease agreement.
When a property is advertised it must include a set rent amount. It is illegal for a landlord to invite rent bidding!

Payment Period

The lease must also specify a payment period, in other words how often rent falls due.
Generally a payment period for rent is either one or two weeks. The longest payment period landlords in Tasmania are allowed to demand is four weeks for most rental properties and two weeks for boarding premises.
It is illegal for a landlord to charge rent per calendar month, instead of weeks. A payment period cannot be changed unless both tenants and landlord agree.

Rent in Advance

Rent is required to be paid in advance during the term of the lease.
For example: A tenant moves in on July 1st and rent is to be paid fortnightly. Rent is paid on July 1 for the period from July 1 to July 14. In other words, rent is paid for time that the property will be occupied, not the time the property has been occupied.

Rent Payment and Receipts

If a tenant pays by cash or cheque, they must receive a receipt with the date paid, tenant’s name, address of the premises, amount paid and the period that the rent is paid for. Electronic payments do not require a receipt as it usually leaves an electronic trail. A landlord cannot change the method of payment during a lease without the tenant’s consent.
Only deposit-taking institutions such as banks or credit unions may charge fees for paying rent. Other services that landlords use to collect rent must not charge fees to the tenant.

Rent Increases in Private Rentals

A landlord can increase the rent for a non-fixed term lease, or a fixed term lease that explicitly allows for rent increases to occur. When a fixed term lease agreement does not include provision for a rent increase, rent cannot be increased during the term of that lease.
The increase notice must be in writing, stating the new rent and the day on which the increase takes effect. The tenant must be given at least 60 clear days notice and there must be at least 12 months between increases.

This does not apply to social housing properties where only 60 days’ notice must be given.

There is no limit on the amount a landlord can increase the rent by. If a tenant believes an increase is unreasonable it may be challenged through the Residential Tenancy Commissioner (RTC). Tenants will have 60 days’ from notice of the rent increase to lodge a dispute. In deciding if an increase is unreasonable the RTC takes into account the general level of rents for comparable premises in the locality and any other relevant matter. The Tenants’ Union can provide advice on this.

Rent Increases in Social Housing

Tenants in social housing are charged rent based on their income – this is called their contribution. There is some variance between providers and sources of income, but generally the contribution will be 25% of income, plus 100% of rent assistance if the tenant is in community housing and receives rent assista