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RESIDENTIAL TENANCIES ACT 1997 - SECT 34A

Additional amount of bond proportionate with rent increase

S. 34A(1) amended by No. 45/2018 s. 345(3)(c).

    (1)     This section applies to a residential rental agreement for a fixed term of more than 5 years in the standard form residential rental agreement referred to in section 26(1A)(b)(ii).

S. 34A(2) amended by No. 45/2018 s. 345(3)(a)(b).

    (2)     The residential rental provider may require the renter to pay an additional amount of bond, if—

S. 34A(2)(a) amended by No. 45/2018 s. 345(3)(a)(b).

        (a)     the residential rental provider has given 120 days written notice in a form approved by the Director to the renter requiring an additional payment of bond; and

S. 34A(2)(b) amended by No. 45/2018 s. 345(3)(a)(b).

        (b)     the additional payment of bond is required by the residential rental provider after the expiry of a period of 5 years of continuous occupation by the renter; and

S. 34A(2)(c) amended by No. 45/2018 s. 345(3)(c).

        (c)     the fixed term of the residential rental agreement

              (i)     is extended by a period of at least 5 years from the expiry of the first fixed term; or

              (ii)     has an unexpired period of 5 years or more; or

S. 34A(2)(c)(iii) amended by No. 45/2018 s. 345(4).

              (iii)     commences after a periodic residential rental agreement; or

S. 34A(2)(c)(iv) amended by No. 45/2018 s. 345(3)(c).

              (iv)     commences after the expiry of a fixed term residential rental agreement, whether in the form prescribed for the purposes of section 26(1) or  26(1A)(b)(ii).

    (3)     An additional amount of bond under subsection (2) is an amount determined by—

S. 34A(3)(a) amended by No. 45/2018 s. 345(3)(c).

        (a)     calculating a total amount of bond for the next 5 year period of the residential rental agreement by using the rent payable at the commencement of the next 5 year period of the residential rental agreement as a basis for that bond's calculation; and

        (b)     subtracting the total amount of bond currently lodged with the Authority from the total amount of bond calculated under paragraph (a).

Example to s. 34A(3) amended by No. 45/2018 s. 345(3).

Example

For the first 5 year period of a residential rental agreement, the rent payable is $400 per week. The bond is 4 weeks rent, or $1600. For the next 5 year period of the residential rental agreement, occurring immediately after the first period, the rent payable is increased to $520 per week. The bond amount calculated by 4 weeks rent at the new amount of rent payable ($520 per week) is $2080. If a term referred to in this section is included in the residential rental agreement, the residential rental provider would be permitted to require the renter to pay an additional amount of bond for $480. This amount is proportionate to the increase in rent payable under the residential rental agreement.

S. 34A(4) amended by No. 45/2018 s. 345(3)(b).

    (4)     The additional amount of bond referred to in subsection (3) must be paid by the renter on or before the end of the period of notice referred to in subsection (2)(a).

S. 34A(5) amended by No. 45/2018 s. 345(3)(a)(c).

    (5)     The residential rental provider must not require an additional amount of bond more than once in any 5 year period of a residential rental agreement to which this section applies.

S. 34B (Heading) amended by No. 45/2018 s. 345(5).

S. 34B inserted by No. 40/2018 s. 10.



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