Hypotheticals by Manny Wood Published in the Coffs Coast Advocate on 1 June 2019.
Anna rents a unit for a term of three years.
Towards the end of the lease, the landlord becomes aware that Anna is sub-letting the premises through Airbnb.
When the term of the lease comes to an end, the landlord issues Anna with a Notice to Vacate, rather than relying on a breach of the lease due to Anna sub-letting the unit.
After the landlord takes possession of the unit, it is discovered that Anna has carried out unauthorised alterations and additions to the unit and it is also discovered that there is unreasonable wear and tear of the premises due to the premises being occupied by hundreds of people through Airbnb.
The landlord demands compensation from Anna for the damage and alterations and advises that they intend to retain her bond.
A dispute arises, and the landlord makes an application to the Civil and Administrative Tribunal of New South Wales (NCAT). The application seeks orders that the bond be released to the landlord and that Anna also pay additional compensation for the damage and alterations.
After hearing the evidence, NCAT finds that there is $6000 worth of the damage to the unit including rectification work as a result of the unauthorised alterations and additions. The Tribunal ultimately makes orders that the landlord is entitled to retain the bond and further orders Anna to pay the shortfall between the assessed $6000 and the bond.
During the hearing of this matter, NCAT repeated several times that Anna’s participation in Airbnb was a “serious breach of the lease” even though the tenancy was not terminated on the grounds of this breach.
If you would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
