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VIC: Residential Tenancies Act Section 94AD Prohibited terms—general

Writer: David WoolfallDavid Woolfall

Prohibited terms—general (1) A fixed term rooming house agreement must not include any of the following terms— (a) a term that requires the resident to take out any form of insurance; (b) a term that exempts the rooming house operator from liability for an act of—

(i) the rooming house operator or that person's agent; or

(ii) a person acting on behalf of the rooming house operator or that person's agent;

(c) a term that provides that if the resident contravenes the fixed term rooming house agreement, the resident is liable to pay—

(i) all or part of the remaining rent under the agreement; or

(ii) increased rent; or

(iii) a penalty; or

(iv) liquidated damages;

(d) a term that requires all or part of the room in the rooming house to be professionally cleaned at the end of the agreement, unless that term is contained in the form prescribed under section 93A(2)(b);

(e) a term that requires the resident to pay the cost of having all or part of the room in the rooming house professionally cleaned at the end of the agreement, unless that term is contained in the form prescribed under section 93A(2)(b);

(f) a term that provides that if the resident does not contravene the fixed term rooming house agreement—

(i) the rent is reduced; or

(ii) the rent may be reduced; or

(iii) the resident is to be paid a rebate or other benefit; or

(iv) the resident may be paid a rebate or other benefit;

(g) any other prescribed prohibited term.

(2) A term in a fixed term rooming house agreement must not include a term that requires a party to the agreement to bear any fees, costs or charges

incurred by the other party in connection with the preparation of the agreement. Note Section 94AC provides that terms which must not be included in a fixed term rooming house agreement are invalid.

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