Natural disasters and real estate

3 December 2019

Drought, water restrictions and maintaining a rental property

What are your responsibilities during a drought when water restrictions are enforced?

Upon entering into a tenancy agreement, the tenant agrees to not intentionally or negligently cause or permit damage to the premises and to leave the premises in (as nearly as possible) the same condition as when the tenancy began. This means the tenant is responsible for maintaining the property, which usually includes taking care of a yard, lawn or garden. But what options do you have if heavy water restrictions are enforced during your tenancy? Breaching a water restriction can mean receiving a fine of up to $220 for excessive or improper use of water.

If, at the end of a tenancy, the landlord tries to claim bond for the repair of a lawn/garden damaged during a drought, the tenant can contest the claim at Tribunal.

Evidence must be provided by the tenant at the tribunal hearing to prove that the damage is fair wear and tear, and that the water restrictions prevented reasonable action by the tenant to maintain the lawn/garden.

What happens if a rental property is damaged during a natural disaster?

If the rental premises becomes totally or partially uninhabitable, the tenant and landlord can agree to end the tenancy. If a mutual agreement is not reached, formal notice can be provided by either party to terminate the tenancy. If the damage is less severe, the tenant can remain in the property while repairs are completed, or they can move out and return once the repairs have been finished. A rent reduction would be appropriate whilst repairs are completed (this could be negotiated with the landlord).

A landlord is not obliged to provide compensation to a tenant for furniture or personal belongings damaged in the event of a natural disaster.

Prior to signing a lease, the landlord/agent must disclose to a potential tenant whether the premises have been subject to flooding or bushfire in the past five years. If this information is not disclosed before the lease is signed, the tenant may be entitled to compensation if a natural disaster occurs again.