Q4. Can the tenants be charged a tenancy renewal fee?
A tenant of a first term tenancy for a subdivided unit is entitled to be granted a second term tenancy of the regulated cycle, thus enjoying a total of 4 years (first term of 2 years plus second term of 2 years) of security of tenure.
A landlord commits an offence if the landlord requires the tenant to pay, or the landlord otherwise receives from the tenant, any money in relation to the tenancy other than those falling within the following types:
- rental deposits;
- reimbursement of charges for any of the specified utilities and services payable by the tenant under the tenancy;
- damages for the tenant’s breach of the tenancy.
Charges or fees related to the renewal of regulated tenancies are not included in the list above. Therefore, the landlord cannot require a tenant to pay a renewal fee, whether it is taken as a pre-condition of granting a second term tenancy.