Taylor Hembling & Sarah Thomson v Liwei Xu; Liwei Xu v Sarah Thomson & Taylor Hembling (Residential Tenancies)

The Australian Capital Territory Civil and Administrative Tribunal (ACAT) was tasked with resolving two interrelated matters concerning a dispute between Liwei Xu, the lessor, and Taylor Hembling and Sarah Thomson, the tenants. The primary dispute centred on the termination of a fixed-term tenancy and the subsequent disposition of the rental bond. The tenants claimed the premises were uninhabitable and that the lessor failed to maintain the property in a reasonably clean and secure state and in reasonable repair. They sought compensation for leaving the tenancy early and for the alleged uninhabitable conditions. The lessor argued that the tenants vacated the premises without proper reason and that the property was in good repair at the start of the tenancy.

The legal issues before the tribunal included whether the tenants were justified in leaving the premises early due to uninhabitable conditions, whether the lessor had failed to maintain the property, and if so, what compensation, if any, was owed to the tenants. Additionally, the tribunal had to determine the appropriate disposition of the rental bond held by the ACT Revenue on behalf of the Territory. The tenants argued that the lessor was unresponsive to repair requests and slow in addressing maintenance issues, which contributed to the uninhabitable conditions. The lessor maintained that the tenants left the tenancy without proper reason and that the property was reasonably clean and in good repair when they moved in.

In its reasoning, the tribunal found that the tenants were justified in leaving the premises early due to uninhabitable conditions, which included issues such as the absence of a working heater and delayed repairs. The tribunal determined that the lessor failed to maintain the property adequately and did not meet their obligations to keep the premises in a reasonable state of cleanliness and repair. Consequently, the tribunal ordered the lessor to pay the tenants compensation for the early termination of the lease and for the uninhabitable conditions. The tribunal also ruled that the entirety of the rental bond should be discharged to the tenants.

In summary, the tribunal's orders included an amendment to the date of a previous order and mandated the lessor to pay compensation to the tenants. Furthermore, the tribunal directed ACT Revenue to release the entire rental bond to the tenants. This decision highlights the importance of landlords meeting their maintenance obligations and the potential consequences of failing to do so.