Issues with Sublet Tenant - Final Gas & Electricity Bills

LOctogenarian on 29/09/2016 - 05:33
Last edited 29/09/2016 - 09:13 by 1 other user

Hi guys.

I will try to make it short.

We are renting a two bedroom apartment. At some point we decide to sublet one of the bedrooms to a tenant. The conditions stipulated by the contract are x amount of weekly rent a 2x of bond deposit and a two week notice of termination from either of the sides. At some point we noticed that the electrical and gas bill significantly spiked and we negotiated verbally that bills are gonna be shared from that particular point of time. This happened indeed and the tenant started paying. Until..

Recently we decided to let the tenant go and notified him as required. The tenant was not happy about it and made the following claims.

The bond has not been deposited with the government as required. We conceded and agreed to offset his moneys owed for unpaid rent against the bond held. So now we don't have any bond held at all.

The electrical and gas bills should not be paid by him since according to the tenancy act since we did not install meters to gage his private usage he. I am not a lawyer but I tend not to agree since the later verbal agreement to split bills supersedes the tenancy act condition.. Is my argument valid?

Cheers guys.

Home & Garden

Comments

  • gevidian on 29/09/2016 - 06:09
    +4

    it is not in my view. If you had a written contract to start with, it can only be superseded by a written contract and not a verbal contract.

    • tomsco on 29/09/2016 - 07:10
      +4

      I'd disagree. The fact that the tenant was paying the bills indicates he acknowledges and accepts.

      • the-mal on 29/09/2016 - 07:34
        +1

        Absolutely correct. If you have proof they'd been paying the bills as agreed then you're all good. If you have no proof they paid a portion of the bill (eg they paid you in cash) then you've got a problem.

        Is he just disputing the payment of the final bills or is he actually asking for all the bill money he's previously paid back?

        • Octogenarian on 29/09/2016 - 08:08

          Disputing the payment of the final bills only.

          Thanks

        • the-mal on 29/09/2016 - 11:55
          +1

          @Octogenarian: Honestly? I'd drop it. Not worth it. You've done things wrong here too:

          • Not lodging bond (which is your legal responsibility under the Act)
          • Not protecting yourself with a written agreement
          • I gather also not asking for permission to sub-let (because if you had you would've been hassled for bond lodgement)

          If you don't take any further action against him, it's likely he'll take no further action against you. That's the best outcome here.

          Count your losses, and handle the arrangement more formally next time (plenty of details here: http://www.tenants.org.au/factsheet-18-transfer-and-sub-lett…).

    • the-mal on 29/09/2016 - 07:40

      Contracts covered by the Residential Tenancy Act can be oral, can be part written part oral. This is perfectly legal. Not smart, but legal.

      http://www.tenants.org.au/factsheet-02-starting-a-tenancy

      Tenancy agreements are usually in written form. They can also be oral (e.g. a conversation with the landlord), or partly written–partly oral. All agreements must follow the Residential Tenancies Act 2010.

  • SnoozeAndLose on 29/09/2016 - 07:13

    Tenant having issue with tenant.

    If there is no written contract basically he is not a legal tenant and i think you did not noticify your agent or landlord therefore he is just your friend sharing the same place with you.

    Let him go to fair trading as he had no prove either.

    • the-mal on 29/09/2016 - 07:37

      Not true.

      Tenancy agreements are usually in written form. They can also be oral (e.g. a conversation with the landlord), or partly written–partly oral. All agreements must follow the Residential Tenancies Act 2010.

      http://www.tenants.org.au/factsheet-02-starting-a-tenancy

      Written is much better for situations like this, but the Act covers unwritten agreements too.

      • SnoozeAndLose on 29/09/2016 - 08:18

        a conversation with the landlord

        but OP is not an landlord and did not get authorisation to sublet this, therefore I do not think this can be form a tenancy agreements.

        • the-mal on 29/09/2016 - 11:52
          +1

          but OP is not an landlord

          Yes he is. An owner and a landlord are different things. If you sub-let for money, with our without consent, your are a landlord.

          did not get authorisation to sublet this

          Doesn't absolve either OP or his tenant from the responsibilities of the law, it just means the OP's landlord could take action against OP for sub-letting without permission. But that aside, the sub-letting agreement has happened, OP is landlord in this context and all the relevant legal responsibility apply.

  • Kangal on 29/09/2016 - 07:37
    +1

    " We conceded and agreed to offset his moneys owed for unpaid rent against the bond held. So now we don't have any bond held at all. "

    What do you mean by this?
    You and him agreed to a bond of fortnightly amount.
    He paid it to you, and you didn't place it with the NSW Fair Trading.
    So you guys agreed for him to pay for the bond in incremental amounts to you, included in the rent.
    You guys want him out, and he hasn't fully paid off the bond.
    So I'm guessing he hasn't paid off the bills either.
    And I'm guessing you agreed to move his 'bond payment' to cover the bills.
    You got greedy, and messed up.

    http://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owner…

    1) Give him options.
    Tell him he can stay if he can fully pay off the bond within 24hours, and pay off his share of the bills by the end of the week.
    Tell him you will put his bond to Fair Trading to show you are not greedy/stealing, and for his security/assurance.
    Tell him you will write up a contract that is fair, and covers everything, and tell him it will benefit him as well in the case of fixtures etc etc.
    ….and if that option is not acceptable tell him he must leave immediately.

    That's if you want him there.
    If not, cut your losses and wish him the best.
    Now if you are serious about having a roommate/tenant, then you must take these matters seriously yourself.

    • Octogenarian on 29/09/2016 - 08:19

      Thanks. did not get greedy as money is not an issue for us… We just were remiss at following the bong lodgement which as I said earlier we have acknowledged and conceded. Thus the unpaid billed have been offset against the bond amount. So now there is no bond and also the tenant still owes us money for unpaid electrical bills which amount to a weekly rent. The positive side is that he has already collected most of his belongings, and moved out in terms of not sleeping in the house. He also mentioned that he will be following the tenancy act in terms of leaving before the end of the two week notice period without being liable to pay the balance, which is fine with us. The problem is the he is playing games with us and not willing to let us know when he will vacate completely relying on the tenancy act clause of 24 hour notice… Thanks

  • chumlee on 29/09/2016 - 07:42
    +6

    How much time and money do you want to spend chasing this??

    Cut your losses and move on I reckon.

      • blitz on 29/09/2016 - 09:11
        +2

        OK, good luck with it then.

      • supnigs super skids on 29/09/2016 - 10:27

        "Will pass it onto my ozbargain slaves" - pats fur coats

      • Octogenarian on 29/09/2016 - 12:04
        +1

        Didn't intend to come across as rude. Just meant that I have more important things to do in life than getting into disputes which eventually led me into posting this message and writing replies. Funny how things can be interpreted incorrectly.

        Thanks for your time guys.

  • fruit on 29/09/2016 - 09:50

    ITT: armchair lawyers.

  • StewBalls on 29/09/2016 - 11:38
    +2

    Just FYI, it would be very prudent for you to change your locks immediately once his 2 week notice period is up.

  • Euphemistic on 30/09/2016 - 07:06

    How much owing are you talking about? Couple of hundred? If you wanted the person out, and they left without toro much hassle a couple of hundred is worth not having too much drama. Also if you let them build up much more than that amount in bills then you obviously didn't chase them hard enough while they were living there and are partially to blame for them not paying up.

  • iand on 01/10/2016 - 20:11

    Verbal agreements are usually worth the price of the paper they're written on

  • snook on 04/10/2016 - 12:00

    Can't help this time but next time, make sure everything is paid before giving notice.

    I don't have any written agreements with my tenants and they therefore have no power over me with any Act. The Acts do not protect the landlord/rentee, not ever. I try to be fair but if they screw me over I throw them out. It is much easier to deal with and I have got better at picking people in the first place.

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