Rental property affected by a natural disaster

Key information

• If the property becomes uninhabitable (except as a result of a breach of the tenancy agreement) a tenant can choose to end the tenancy.
• A tenant and landlord can also agree to continue the tenancy, even if the tenant needs to move out temporarily.
• A landlord and tenant can agree to a rental reduction or waiver while repairs are being done.
• A landlord is not obliged to find or pay for the tenant's temporary accommodation.
• All agreements should be put in writing.

A tenancy can be ended if the rental property is uninhabitable 

If the property is destroyed or becomes totally or partially uninhabitable because of a natural disaster, the landlord and tenant can mutually agree to end the tenancy on the grounds that the agreement is 'frustrated'. This ends the tenancy with no further obligation on either party.

If no mutual agreement is possible, the tenant or landlord can either:

• end the tenancy by giving a written termination notice, or
• continue the tenancy.

Termination notice

A termination notice  given on the grounds that the tenancy agreement is frustrated because the property is wholly or partly uninhabitable can end the residential tenancy agreement on the date that the notice is given.

It can also specify a termination date that is before the end of the fixed term of a fixed-term residential tenancy agreement.

If the landlord or tenant don’t agree with the other party's termination notice, they can apply to the NSW Civil and Administrative Tribunal (NCAT) where they can determine the validity of the termination notice.

If the tenancy agreement is terminated, the landlord and tenant may decide to enter enter into a new agreement once the property is repaired. Tenants should be aware that a higher rent could be included in the new agreement.

Find out more about ending a tenancy and getting your bond back.

If the tenancy continues after a natural disaster

The landlord and tenant can agree to maintain the tenancy and reduce or waive rent during the period the property is wholly or partly uninhabitable. This agreement should be put in writing.

The tenant can move out temporarily and return once repairs have been completed. The landlord is not obliged to find or pay for the tenant’s temporary accommodation.

If the property is only partly uninhabitable, the tenant can choose to stay in the property while repairs are being conducted. Tenants should only consider doing this if the damage is relatively minor and there is no ongoing safety risk. It may be appropriate for there to be a rent reduction if the tenant can only occupy part of the property.

However, if the tenant can see any signs of damage after repairs have been done - for example, mould or damp - the tenant must notify their landlord or agent as soon as practicable.

Any agreement should be put in writing.

Urgent repairs after a natural disaster

Serious storm, fire or flood damage are all considered to be urgent repairs and should be handled quickly.

If the repairs are not urgent, the tenant and the landlord should agree to a timetable for repairs.

A landlord is not obliged to compensate the tenant for any damage to the tenant’s furniture or personal belongings from a natural disaster.

If a tenant cannot contact their landlord, they may be able to arrange for the repairs to be done.

Paying rent after a natural disaster 

If the tenant moves out temporarily or continues living in the partially damaged property, the rent should be waived or reduced.

While a tenant has a right to a waived or reduced rent if a property is wholly or partly uninhabitable, the amount of any reduction if the tenant keeps living in the property should be negotiated between the landlord and tenant.

Any agreement in these situations should be put in writing.

If agreement cannot be reached, the landlord or tenant can apply to the  NSW Civil and Administrative Tribunal (NCAT) for an order determining the amount of rent payable in these circumstances.

Damage to personal belongings after a natural disaster

Landlords are not responsible for damage to a tenant’s personal belongings or furniture in the event of a natural disaster.

Tenants are responsible for maintaining contents insurance on their belongings in the rented property.

Goods left behind

Tenants are responsible for ensuring that all of their belongings are removed from the premises at the end of the tenancy.

Regardless of the circumstances, landlords and agents must follow the correct process when goods have been left behind.

How to manage disputes

It is always best for a tenant and landlord or agent to try to come to a resolution first. If the issue cannot be resolved, a tenant or landlord can seek a resolution at the NSW Civil and Administrative Tribunal (NCAT).

A landlord or tenant can apply directly to the Tribunal to resolve disputes about repairs, maintenance or damage to the property.

In some situations, NSW Fair Trading may issue a rectification order to landlords to undertake repairs, or to tenants to fix damage. 

Visit the Resolving residential tenancy disputes page for more information.

Additional information and services

There is a range of support services available if you need help after a natural disaster.