Understanding Tenant Compensation and Lease Breach in NSW

Renting a home in New South Wales comes with certain rights and responsibilities for both tenants and landlords. Among these are guidelines regarding lease breaches and conditions under which tenants can claim compensation. Understanding these aspects can empower renters to effectively address any issues that arise during their tenancy.

What Constitutes a Lease Breach?

In New South Wales, a lease breach occurs when either the tenant or the landlord fails to comply with the rental agreement terms, as stipulated by Residential Tenancies Act 2010. Common breaches by landlords include not maintaining the property in a habitable state or failing to respect the tenant's right to quiet enjoyment. Meanwhile, tenants may breach their lease by causing damage to the property beyond normal wear and tear or failing to pay rent on time.

Tenant Rights and Compensation

When a tenant's rights are violated, such as in the event of a lease breach by the landlord, tenants might be entitled to compensation. For instance, if a landlord fails to perform necessary repairs and this results in loss of amenity or inconvenience, the tenant could seek compensation.

Key Forms: A tenant can utilize the 'Notice to Landlord' form when notifying their landlord about issues needing action. Additionally, should the matter escalate, an application can be submitted to the NSW Civil and Administrative Tribunal (NCAT) to seek a resolution.

Tip: Always keep records of correspondence between you and your landlord, especially involving requests for repairs or complaints regarding the property condition.

Steps to Claim Compensation

  1. Notify the landlord in writing of the issue.
  2. Document the issue with photographs or copies of communication.
  3. Submit a formal application to NCAT if the landlord fails to address the issue.

Applicable Legislation

The relevant legislation governing tenant and landlord rights in NSW includes the Fair Trading Act 1987 (Cth), which outlines national rental protections, and the Residential Tenancies Act 2010 (NSW).

FAQ Section

  1. What should I do if my landlord breaches the lease? Try to resolve the issue by discussing it directly with your landlord. If unresolved, serve a 'Notice to Landlord' and keep detailed documentation.
  2. How can I seek compensation for repairs my landlord hasn't made? Compile evidence of the issue and communication with your landlord, then file an application with NCAT.
  3. Can I withhold rent if my landlord hasn't made repairs? Withholding rent may result in breaching your lease; instead, follow proper procedures for seeking resolution through NCAT.

Need Help? Resources for Renters

If you need support, consider reaching out to:


1. Residential Tenancies Act 2010 (NSW)
2. Fair Trading Act 1987 (Cth)
Bob Jones
Bob Jones

Editor & Researcher, Tenant Rights Australia

Bob writes and reviews tenant law content for various regions. They’re passionate about housing justice and simplifying legal protections for tenants everywhere.