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[2020] NSWCATAP 255
respondent. Leave to appeal refused. Appeal dismissed. The first-instance monetary orders, including the order for $5,897.95 by instalments and the order concerning the bond, were not disturbed by the Appeal...
The tenant said she had left the premises before the termination date, but she kept the keys and did not notify the landlord or agent that she had vacated until shortly before returning them. The Appeal Panel held that, ordinarily, a tenant has not given vacant possession until the keys are returned, although the result can depend on the facts, including any notice given to the landlord. It upheld the rent calculation to 11 February 2020. It also upheld the cleaning and repair awards, rejected the argument that the tenant could return after the tenancy ended to remedy the premises, and found that a rent reduction for the faulty air-conditioner required an application under s 44 of the Residential Tenancies Act 2010 (NSW). Leave to appeal was refused and the appeal dismissed.
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Phoenix was the tenant of premises owned by Chen. The tenancy began on 26 October 2018. Rent was $1,000 per fortnight, payable in advance, and Phoenix paid a $2,000 bond [Reasons, introductory facts, [1]].
On 19 December 2019, the landlord's agent gave a notice to terminate for non-payment of rent, requiring vacant possession on 2 January 2020 [2]. Chen applied to NCAT on 24 January 2020 seeking money orders, including for rent arrears, and termination-related relief [3]. At the first Tribunal hearing, on 11 February 2020, Phoenix handed the keys to the agent [4]. She had not attended an end-of-tenancy inspection for which she had been notified at that hearing [4].
The first-instance Tribunal ordered Phoenix to pay $5,897.95 in instalments. Its calculation included $4,642.95 rent arrears, $300 for wall dents, $400 for rubbish removal, $400 for internal and carpet cleaning, $150 for cleaning walls, and $5 for a mailbox key [7 and following calculation]. The Tribunal calculated rent to the date the keys were returned, rather than to the date Phoenix said she moved out. It also ordered the bond paid to Chen and credited against the money order.
Phoenix appealed. Her grounds included that she had moved out before 2 January 2020; that she had not agreed to Ventus Real Estate acting as managing agent; that the amounts for cleaning and repairs were not adequately supported; that she had not been given an opportunity to do the work herself; and that the rent should have been reduced because the air-conditioner was not working properly.
The Appeal Panel heard the appeal on 30 July 2020. It considered the appeal grounds, including additional grounds raised in a later document and orally at the hearing. It found the respondent would not be prejudiced by considering them. On 7 December 2020, it refused leave to appeal and dismissed the appeal.
The central question was whether Phoenix had given vacant possession when she said she moved out, or only when she returned the keys on 11 February 2020. The Panel recognised that Phoenix gave sworn evidence that she had “moved out” before 2 January 2020, but noted that the first-instance Tribunal had made no finding about the actual date she left [Ground 1, paras 2-4]. The relevant issue was therefore not simply physical departure. It was whether vacant possession had been given.
Section 81 of the Residential Tenancies Act 2010 (NSW) (RTA) sets out the circumstances in which a tenancy terminates. Section 81(2) provides for termination by notice where the tenant gives vacant possession. Section 110 allows a tenant who has received a termination notice to give vacant possession before the specified termination date, with rent consequences tied to when vacant possession is given. The Panel also considered s 120, which restricts entry by a landlord to take possession unless the tenant has abandoned the premises or given vacant possession [Ground 1, statutory provisions].
The Panel treated the keys as significant because retaining them may mean that the tenant retains control of access. It referred to Thomas v Metropolitan Housing Corporation Ltd, where the English Court of Appeal considered the delivery of keys in connection with possession. The Panel also relied on NSW Land & Housing Corporation v Quinn (No 2), where the District Court treated the tenant's retention of keys as relevant to actual possession. The Panel's own conclusion was qualified: whether vacant possession has been given is a question of fact, but “ordinarily” it is not given until the keys are returned [Ground 1, discussion of authorities].
The facts made the key-return date decisive here. There was no evidence Phoenix had told Chen or the agent that she had left the premises before 8 February 2020. She returned the keys on 11 February. The Panel considered that, without the keys or notice of departure, a landlord could not safely assume an apparently empty property had been abandoned or that the tenant intended to terminate the tenancy. It concluded that the Tribunal had not made an error of law in using 11 February as the date vacant possession was given.
The other grounds did not alter the outcome. On the managing-agent issue, the tenancy was between Phoenix and Chen. The Panel found no term in the agreement or provision in the RTA that required Phoenix's agreement to Chen's choice of agent [Ground 2, para 1].
On the cleaning and repair amounts, the Panel identified photographs showing the wall dents, rubbish and dirt, as well as quotations and an invoice for the work. It noted that the Tribunal had rejected some of Chen's claims where evidence was insufficient. The evidence supported the particular amounts allowed, and the Tribunal had awarded less than the quoted amounts because GST was not included [Ground 3, paras 1-5].
On Phoenix's argument that she should have been able to clean or repair the premises herself after the tenancy, the Panel relied on clause 17 of the tenancy agreement and s 51(3) of the RTA. Those provisions required removal of goods and rubbish, reasonable cleanliness, the specified condition of the premises subject to fair wear and tear, and return of keys. The Panel said there was no right under the general law or the RTA to return after termination to fix a failure to meet those obligations [Ground 4, paras 1-4].
Finally, the Panel addressed the air-conditioner. The parties did not dispute that it had not worked satisfactorily for part of the tenancy. The Panel explained that ss 43 and 44 of the RTA provide a process for seeking a rent reduction when a landlord has reduced or withdrawn goods, services or facilities. A tenant's request does not oblige the landlord to agree. Because Phoenix had not made an application under s 44, the Panel held it had no jurisdiction in this proceeding to reduce the rent [Ground 5, paras 1-6].
The decision did not describe a change in legislation. It applied the provisions of the RTA, including ss 43, 44, 51(3), 81, 106, 110 and 120, to a dispute about termination and rent arrears.
Its contribution in this judgment is an explanation of how the Panel understood vacant possession in the circumstances before it. It treated returning keys as the ordinary indicator that vacant possession has been given, while expressly retaining a fact-specific approach. That qualification matters: the decision does not say that keys are the only possible evidence in every case. It also discusses notice by a tenant that the premises have been vacated as a circumstance that may affect the landlord's ability to act.
The Panel explained two parts of the statutory context. First, s 120 restricts a landlord's entry to take possession unless there is a warrant or the tenant has abandoned the premises or given vacant possession. Second, where a landlord believes premises have been abandoned, s 106 permits an application for a declaration of abandonment. The Panel used those provisions to explain why a landlord may face uncertainty when premises appear empty but keys have not been returned and no notice has been given.
The decision also states that an end-of-tenancy obligation to leave premises in the required condition does not give the tenant a post-termination right to return and remedy deficiencies. For rent reductions, it distinguishes a request under s 43 from an application under s 44 where the landlord has not agreed. These are applications of the cited statutory provisions as described in this judgment, not statements that every issue in a future dispute will be resolved in the same way.
The central statement is: “The question whether a tenant has given vacant possession of premises is a question of fact in each case. However, in our view ... ordinarily a tenant does not give up vacant possession of premises until they return the keys to the landlord or the landlord's agent” [Ground 1, para 12, paragraph numbering in the supplied judgment restarts under headings]. In plain English, returning the keys will usually be important evidence that the tenant has handed control of the premises back, but the whole situation still matters.
The Panel explained the practical concern: without returned keys, a landlord may not know whether an empty property has been abandoned or whether the tenant still intends to retain possession [Ground 1, para 13]. The Panel connected this to s 120, which can expose a landlord to an offence if the landlord enters without the required basis. This helps explain why physical departure alone did not determine the result in Phoenix's case.
On notice, the Panel observed that there may be cases where a tenant tells the landlord the premises are vacated and leaves them empty without handing over the keys. In those circumstances, the landlord would generally be entitled to act on the notification and enter and change the locks [Ground 1, para 15]. This was a general observation, not the finding on Phoenix's facts: the Panel found no evidence of notice before 8 February.
On post-tenancy repairs, the Panel stated that a tenant who fails to meet end-of-tenancy obligations has no right under the general law or the RTA to return after termination to fix those shortcomings [Ground 4, para 2]. In plain English, the duties to clean, remove rubbish and leave the premises in the required condition are duties to be performed before giving vacant possession, rather than a right to re-enter later.
On rent reduction, the Panel said the route to a reduction that the landlord does not agree to is an application under s 44 [Ground 5, para 5]. A tenant's request by itself does not impose an obligation on the landlord to accept a lower rent.
The decision is directly relevant to a residential tenancy dispute where a tenant receives a termination notice, says they have moved out, but keeps the keys and does not clearly notify the landlord or managing agent that the premises have been vacated. Phoenix concerned rent arrears calculated up to the date of key return, where the landlord had no earlier notice of departure and the tenant later returned the keys at a Tribunal hearing.
The Panel's reasoning also identifies a potentially different fact pattern: the tenant has left the premises empty and notified the landlord that they have vacated, but has not physically returned the keys. The Panel said that, generally, the landlord would be entitled to act on such notice. Because this was not the situation it found in Phoenix, the observation should be read as a qualification rather than as a complete rule for all cases.
The decision also concerns disputes where the landlord claims end-of-tenancy cleaning or repair costs and has photographs, quotations or invoices supporting the work. It highlights the relevance of the tenancy's end-of-term obligations, including reasonable cleanliness, rubbish removal and returning keys. It may be relevant where a tenant argues that they should have been given a later opportunity to perform the work, because the Panel rejected a general post-termination right to return and rectify shortcomings.
For a claimed rent reduction due to a faulty facility, the decision addresses the distinction between requesting a reduction and applying to the Tribunal under s 44 when the landlord does not agree. Whether those provisions apply in a different dispute depends on that dispute's evidence, the relevant tenancy terms and the statutory circumstances.
The supplied judgment contains no decisions made after 7 December 2020 and therefore does not establish how later courts or tribunals have treated Phoenix v Guangyue Chen. No later application, distinction, approval or rejection can be identified from this source alone.
Within the judgment itself, the Appeal Panel used several earlier authorities. It referred to Collins v Urban for the substantial-miscarriage-of-justice threshold and the usual considerations relevant to granting leave to appeal. It referred to Cominos v Di Rico when explaining its approach to identifying the grounds of appeal raised by a self-represented appellant. It cited Wilson v Walshe for the observation that the meaning of “vacant possession” varies with context. It discussed Thomas v Metropolitan Housing Corporation Ltd and followed the reasoning attributed to NSW Land & Housing Corporation v Quinn (No 2) about the significance of retaining keys.
Those relationships describe the sources relied on within this decision. They do not establish how Phoenix itself has been treated by later decisions.
The Panel emphasised that vacant possession is a question of fact in each case. Its “ordinarily” formulation leaves room for other circumstances to matter. The judgment does not set out an exhaustive test for all situations in which a tenant has left, kept the keys, given some form of notice, or communicated with a managing agent.
The Panel's observation about a tenant's notification of departure raises questions the judgment does not resolve in detail. It does not specify what form of notification would be sufficient, how clear it must be, or how disputes about whether notice was actually given would be resolved. Those issues would depend on evidence and the statutory context.
The judgment also does not decide how abandonment under s 106 interacts with every possible form of departure, or what evidence would be enough to obtain a declaration in another case. It explains the available statutory route and the relevance of s 120, but does not provide a comprehensive account of those processes.
On rent reductions, the Panel dealt with the absence of a s 44 application in the proceeding before it. It did not determine a reduction amount for Phoenix or set out how the Tribunal should assess the amount of a reduction in another case. Nor did it determine other potential consequences of an air-conditioner fault beyond the rent-reduction issue raised on appeal.
Finally, the decision was an internal appeal concerning the evidence and grounds before the Appeal Panel. It does not determine the outcome of other disputes about key return, cleaning costs, repair evidence, managing agents or rent reductions. This is general legal information, not legal advice. Zoe can make mistakes. Before acting on or relying on this analysis, have a qualified Australian lawyer check it.
REASONS FOR DECISION
The Scope and Nature of Internal Appeals
Grounds of appeal
Ground 2 - the appellant did not accept Ventus Real Estate
Ground 3 - alleged absence of evidence of the cleaning and remediation costs
Ground 4 - the appellant was not given the opportunity to make good the premises
Ground 5 - the entitlement claimed by the appellant to a reduction in rent by reason of the allegedly defective air-conditioner
Ground 1 - the date of termination of the tenancy
I hereby certify that this is a true and accurate record of the reasons for decision of the Civil and Administrative Tribunal of New South Wales. Registrar DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 07 December 2020
Phoenix
Guangyue Chen
Leave to appeal refused. Appeal dismissed. The first-instance monetary orders, including the order for $5,897.95 by instalments and the order concerning the bond, were not disturbed by the Appeal Panel.