Residential Tenancies Amendment Act 2019 (ACT)

The Residential Tenancies Amendment Act 2019 (ACT) amends the Residential Tenancies Act 1997 and the Residential Tenancies Regulation 1998. The legislation introduces changes to the process for increasing rental rates, requirements for advertising residential tenancies, and the procedures for obtaining consent from a lessor for modifications to premises and keeping animals. The court was required to interpret and apply these new provisions in the context of disputes between lessors and tenants.

The primary legal issues revolved around the interpretation of the new provisions, particularly those concerning the conditions under which lessors could refuse consent for modifications and the process for increasing rental rates. The court had to determine the scope of the lessor's discretion in refusing consent for modifications, the reasonableness of conditions imposed on such consent, and the criteria for approving or refusing a rental rate increase.

The court held that lessors could only refuse consent for special modifications if they obtained prior approval from the Australian Capital Territory Civil and Administrative Tribunal (ACAT). For other modifications, lessors could only unreasonably refuse consent. The court emphasised the importance of considering factors such as potential hardship to the lessor, compliance with territory laws, and additional maintenance costs. Regarding rental rate increases, the court found that lessors could only increase rates beyond a prescribed amount if the tenant agreed or if the ACAT approved the increase. The court also noted that tenants could apply to the ACAT for a review of proposed rental rate increases.

The court's decision clarified the rights and obligations of both lessors and tenants under the amended legislation, providing a framework for resolving disputes related to modifications and rental rate increases. The amendments aim to balance the interests of both parties while ensuring that modifications and increases are conducted fairly and reasonably.