3.10 Compensation for Loss Incurred Due to a Breach by the Owner

Section 15 of the Residential Tenancies Act (1987) enables a tenant to apply to the Small Disputes Division of the Local Court for an Order that the owner compensate them for any loss or injury (except personal injury) incurred; due to a breach committed by the owner, or due to a dispute which has arisen under the agreement. A breach is a breach under a residential tenancy agreement.

The Magistrate in the Local Court may make an Order for compensation up to $6,000. Claims for over $6,000 are generally heard in another Court, though claims in excess of $6,000 may be heard in the Small Disputes Division of the Local Court (where tenancy cases are usually heard) in special circumstances (s. 12(4)). Get advice, particularly if the compensation claim is significant.

Some examples of claims may include:

• reimbursement for the cost of goods stolen from the premises where the owner failed to provide the premises with devices to ensure the premises were reasonably secure;
• if the tenant was illegally evicted by the owner, the costs incurred by the tenant as a result of this such as removal and storage of furniture costs, staying in alternative accommodation and the like;
• costs of damage done or mess left by tradespeople allowed entry by the owner;
• costs incurred because the owner did not keep the premises in a reasonable state of repair, (for example damages caused by a leaking or collapsed roof).

Tenants can claim compensation from the owner for costs they incur due to the owner breaching the agreement.

There may also be scope for a tenant to apply for compensation for a breach of the agreement where a right under the tenancy agreement was lost, (for example for the loss of peace, comfort or quiet enjoyment if the owner has breached the tenant's right to quiet enjoyment of the property).

Applying for a Hearing

The Application must be made to the Local Court on a Form 12. The Form has two main sections:

• Reason for Application
  Provide details of the breach by the owner, and identify what loss of injury resulted from it. The claim must be quantified to include a monetary value, and supported by receipts and/or quotes.
• Order Required
  The tenant should state that s/he is seeking an Order for the owner to pay compensation for the breach by the owner. If there are a number of costs specify each one individually as well as giving the total value of the claim. You may also apply for reimbursement of the application fee.

See the section Going to Court for more information on applying, and appearing in Court.

Sample part of Form 12 application to the Local Court for compensation due to breach of agreement by the owner:

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