k) Second term Offer

k) Second term Offer

For a regulated tenancy, the landlord of a first term tenancy must make a second term offer within the offer period.

A landlord of a first term tenancy for a subdivided unit must, within the offer period, make a second term offer in Form AR1 (to be available from October 2023) to the tenant for a second term tenancy of the regulated cycle for the subdivided unit, and serve the offer on the tenant. The landlord must state the proposed amount of rent for the second term tenancy in Form AR1 and sign the Form.

“Offer period” means the period of the second calendar month immediately before the calendar month in which the purported second term tenancy commences. For example, if a second term tenancy is to commence on any date in January 2024, the relevant offer period is the whole month of November 2023.

If the tenant accepts the second term offer, the tenant must sign Form AR1 containing the offer as served by the landlord, and serve it on the landlord before the expiry of the first term tenancy. If the tenant fails to notify the landlord of the tenant’s acceptance of the second term offer before the expiry of the first term tenancy, the tenant is taken to have rejected the second term offer. It is not necessary to submit Form AR1 to RVD.

If the landlord of the first term tenancy for a subdivided unit fails to serve a second term offer on the tenant within the offer period, the landlord is taken to have made a second term offer to the tenant on the expiry of the offer period, and the tenant is taken to have accepted the second term offer and to be granted the second term tenancy on the expiry of the first term tenancy unless the tenant has handed over the subdivided unit back to the landlord on or before the expiry of the first term tenancy. In that case, the renewed rent for the second term tenancy is to be the amount of rent last payable by the tenant for the first term tenancy, or if the control percentage ascertained for the rent for the second term tenancy is a negative figure, the renewed rent for the second term tenancy is to be reduced by that percentage. If it is now the offer period and the tenant has not yet received the landlord’s second term offer, the tenant may wish to check with the landlord if he/she has already sent out Form AR1 which has gone astray, etc.