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Last October I asked the question “who is responsible for lost rent if tenants move out while the lift is being upgraded for approximately 10 weeks”. There has not been any answers posted on the forum to my question. Is there someone out there who can help?
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I assume the circumstances were that the Tenants claimed that he/she vacated because the lift was out-of-service.
That being the case, that Tenant would have been hard-pressed to convince a reasonable person (or even the N.S.W C.T.T.T.) that that was the only option; otherwise every resident above level 2 would have done likewise!
If you're the Landlord, you could have offered to reduce the rent during the 10 week period that you describe; not that you were compelled to, just as your Owners Corporation would not be compelled to compensate you in that or indeed any other similar circumstance, if that's what your seeking advice about.
Strictly speaking and in the circumstances that you describe, Tenants can voluntarily terminate Leases with 14 days (fixed term) and/or 21 days (periodic term) written notice. In the former case, and except in a few excepted circumstances of which a lift upgrade is not one, the vacating Tenant is required to keep paying rent until the Landlord finds a new Tenant or until the fixed term expires.
So in summary – the answer is that:
- In limited circumstances the Tenant is responsible, in which case an application for costs could be made to the CTTT or similar.
- The Landlord could make a Claim for lost rent on any Insurance held
- The O/C (of which the Landlord is a part) is not responsible
Just adding to Whale's comment, according to the relevant Tenants NSW fact sheet, clearly states that tenants should not stop paying rent and I guess that applies to just moving out too. However, it says landlords may have to lower rents if services are reduced.
Applying for a rent reduction
The CTTT may make an order that the rent is or was excessive due to a reduction or withdrawal by the landlord of any goods, services or facilities provided with the premises.
If the CTTT finds the rent excessive due to the reduced facilities, it will make an excessive rent order. It will specify the maximum amount of the rent and the day from which it applies – for a period of up to of 12 months.
In the case of a strata building, if you can't persuade the OC to compensate you, you may as well encourage the tenant to take it to the CTTT and then apply for relief from the OC and its insurers, using those figures as the basis for the claim. I don't know how much joy you will get there as everyone else is suffering too (and you will likewise benefit when the lifts are repaired).
Anyone else have any experience of this kind of problem?
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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