[2025] SACAT 65
General information, not legal advice.
SA Civil and Administrative Tribunal
2025-07-29
Original judgment source is linked above.
Nguyen v Hao [2025] SACAT 65
Member Hastwell (31 December 2024, 2024/SH006991)
The applicant sought internal review of a decision of the Tribunal which required her to pay compensation to the respondent, on the basis that the arrangement between them was a rooming house agreement. The applicant argued that such a determination was inconsistent with other Tribunal determinations in similar circumstances.
The applicant was the sole tenant under a residential tenancy agreement with the landlord. The landlord had allowed her to offer the other 2 bedrooms in the house for rent, to other persons. The applicant did so, and a dispute arose between her and one of the other residents. The issue for determination was whether the dispute could be characterised as a tenancy dispute within the meaning of the Residential Tenancies Act 1995 (RTA). If not, then the Tribunal did not have jurisdiction to deal with it.
Under the agreement between the parties, the respondent paid the applicant a bond and rent but otherwise shared equally in utility payments with her and another occupant. The agreement permitted the respondent to reside in a room at the property and the use of common shared areas.
The Tribunal's decision considers the proper characterisation of the party's legal relationship and, consequently, whether the Tribunal has jurisdiction to deal with the dispute under the RTA.
Held, setting aside and substituting the decision under review:
Internal review - Residential Tenancy - Jurisdictional matters - Existence of residential tenancy agreement
Azadegan v Kirby [2020] SACAT 10
Banner v Banner & Ors [2023] SACAT 99
Clark & Clark v Karan & Karan by their agent Ouwens Casserly Property Management (2017) SIR000078 (unreported)
Corbett v Parekh & Adhikari (2019) SMCH000537 (unreported)
Dymond & Grey (by Elders Real Estate Playford) v Raven & Raven [2011] SARTT 3
Farrugia v Graham, Graham & South Australian Housing Trust [2016] SACAT 35
Henderson v Housing Choices South Australia Ltd [2019] SASC 121
Hier v Hier [2017] SACAT 30
Leffler & Anor v Nepondi Pty Ltd [2020] SACAT 105
McColl v Hearse [2016] SACAT 38
Munroe v Small Boat Club of South Australia Inc [2016] SACAT 36
Nejad v Rochow [2020] SACAT 62
Noblett and Mansfield v Manley [1952] SASR 155
Radiach v Smith [1959] HCA 45; (1959) 101 CLR 209
Street v Mountford [1985] UKHL 4; [1985] AC 809
Tronnolone v Edwards & Bryan [2016] SACAT 27
Ms S Sproull, RentRight SA, appeared for the respondent
(a) a claim under a residential tenancy agreement, a rooming house agreement, or an agreement collateral to a residential tenancy agreement or a rooming house agreement; or
(b) a dispute between parties or former parties to a residential tenancy agreement, a rooming house agreement, or an agreement collateral to a residential tenancy agreement or a rooming house agreement, about matters arising under the agreement or this Act; or
(c) any matter that may be the subject of an application under this Act to the Tribunal;
The different legal relationships that may arise when one person grants to another, a right of occupation, in residential premises (and their characteristics)
an agreement (other than a rooming house agreement) under which a person grants another person, for valuable consideration, a right (which may, but need not, be an exclusive right) to occupy premises for the purpose of residence;
"Butt's Land Law stresses the importance of exclusive possession and that its absence will be the leading indication that the parties did not intend to create a leasehold estate but intended, rather, to merely grant a licence to occupy or enter the premises. Thus it is stated:[12] > > [7.90] A lease (or demise) gives the tenant the right to exclusive possession - the right to exclude all others from the land. This includes the right to exclude even the landlord, subject only to any rights the landlord has by law or under the lease agreement, such as the right to enter and view the state of repair. ... In contrast, a licence gives a mere right to occupy, ...
A rooming house agreement is defined as an agreement under which "... accommodation is provided (with or without meals, or other facilities or services) in a rooming house" > > Rooming house is defined as "... residential premises in which 2 or more rooms are available, for valuable consideration, for residential accommodation ..." > > Rooming house proprietor means a person who carries on a business involving the provision of accommodation under rooming house agreements. > > Rooming house resident means a person who boards or lodges in a rooming house.
The primary and usual meaning of "lodger", as so defined, is "one who resides as an inmate in another person's house, paying a certain sum periodically for the accommodation," or "one who occupies an hired room in another person's house"... A "boarder" is "one who... has his food, or food and lodging, at the house of another for compensation; one who lives in a boarding house, or with a family as one of its members, at a fixed rate; one who has food at another's table, or meals and lodgings in his house for pay, or compensation, of any kind. In ordinary circumstances with both lodger and boarder legal possession remains in the person who provides room or rooms, or meals. He retains possession and control over rooms and means of ingress and egress, but grants license to guests who pay, or give consideration for the privilege.
Whether the transaction creates a lease or a licence ... depends upon the nature of the right which the parties intend the person entering upon the land shall have in relation to the land ...[24]
a) The agreement refers to Ms Nguyen as the "landlord" and Mr Hao as the "tenant". > > b) The agreement is periodic. > > c) Mr Hao was required to pay rent of $190 per week, on a fortnightly basis, to Ms Nguyen. Rent was to be paid into a bank account in Ms Nguyen's name. > > d) Mr Hao was also required to pay a bond of $760 to Ms Nguyen. > > e) The agreement requires Mr Hao to pay one third of the outgoings (electricity/gas/water/wifi). > > f) The agreement states that excluded areas are other bedrooms and desk area. > > g) In the "Additional terms" section of the agreement, there are statements in relation to unacceptable behaviour, and that most communications will be by text. > > h) The agreement purports to apply the rights and obligations of a landlord and tenant, between Ms Nguyen as landlord and Mr Hao as tenant.
Question 1: Is the arrangement between the parties a residential tenancy agreement?
Question 2: Is the arrangement between the parties a sub-tenancy?
a) The arrangement would have contravened section 64 RTA which requires a landlord to provide a tenant with vacant possession of the property - that could not happen while Ms Nguyen and another person were residing at the property.[28] > > b) Any such arrangement would also contravene section 65 RTA which relevantly provides that: > > "...(a) the tenant is entitled to quiet enjoyment of the premises without interruption by the landlord or a person claiming under the landlord or with superior title to the landlord's title; and
(b) the landlord will not cause or permit an interference with the reasonable peace, comfort or privacy of the tenant in the tenant's use of the premises..."
Question 3: Is the arrangement between the parties a co-tenancy or a co-residence agreement?
Question 4: Is the arrangement between the parties a rooming house agreement?
Question 5: Is the arrangement between the parties a boarder or lodger arrangement?
Question 6: Is the arrangement between the parties a licence to occupy?
In any event, such a relationship would be outside the Tribunal's jurisdiction, under the RTA.
The application is dismissed as the Tribunal has no jurisdiction to deal with it.
[1] Tronnolone v Edwards & Bryan [2016] SACAT 27.
[2] Hier v Hier [2017] SACAT 30; Banner v Banner & Ors [2023] SACAT 99.
[3] Clark & Clark v Karan & Karan by their agent Ouwens Casserly Property Management (2017) SIR000078 (unreported).
[4] Although a payment for an option may be acceptable in some circumstances.
[5] In Leffler & Anor v Nepondi Pty Ltd [2020] SACAT 105, the Tribunal found that was not the case as the person who attempted to grant a tenancy to another, was not the sole owner of the property, and did not have the approval of the other owner of the property to create the tenancy agreement.
[6] In Dymond & Grey (by Elders Real Estate Playford) v Raven & Raven [2011] SARTT 3, the Tribunal found that the landlords' agent had made a genuine mistake about the rent to be charged, but in the circumstances, changed the amount of rent payable under the agreement.
[7] In Lennard v Sweet (2021) SIR000215 (unreported), the Tribunal found that there was a residential tenancy agreement for a section of the house because it was discrete, self contained and able to be locked.
[8] Shires v Fisher (2020) SIR000267 (unreported).
[9] In Hier v Hier [2017] SACAT 30, and in Azadegan v Kirby [2020] SACAT 10, the Tribunal found that there was a residential tenancy agreement for a granny flat.
[10] In Nejad v Rochow [2020] SACAT 62, the tribunal dismissed the tenant's argument that the arrangement was for a commercial purpose - the tenant argued that he had rented the property to rent out for short term stays, a commercial purpose. But the landlord's agent gave evidence that the only purpose which had been communicated to her, was for residential use.
[12] Brendan Edgeworth, Butt's Land Law (Thomson Reuters Lawbook Co, 7th ed, 2017) 306-307.
[13] McColl v Hearse [2016] SACAT 38.
[14] Corbett v Parekh & Adhikari (2019) SMCH000537 (unreported).
[15] In Munroe v Small Boat Club of South Australia Inc [2016] SACAT 36, the Tribunal found that there was no residential tenancy agreement because the "tenant" lived in a shipping container on land owned by a small boat club. The Tribunal found that the exemption in section 5(1)(iii) RTA applied.
[16] The Tribunal has found that a residential tenancy agreement does exist, in some of those matters; see for example Azadegan v Kirby [2020] SACAT 10.
[17] Farrugia v Graham, Graham & South Australian Housing Trust [2016] SACAT 35.
[20] [1952] SASR 155; see also Ellis v City Woman's Hostel RTT 97/022789.
[28] It follows that some of the obligations under the agreement (such as the obligations to share equally the cost of utilities and cleaning products), are shared equally between the residents (including Ms Nguyen) - are inherently inconsistent with a landlord/tenant or head tenant/subtenant arrangement.
[29] Because of the definition of rooming house proprietor.
Nguyen
Hao [2025] SACAT 65
(1959) 101 CLR 209