Sample Letter - Illegal to ask for guarantor in guise of co-tenant

[Your name and address]

[Date]

[Landlord’s or agent’s name and address]

Dear …

Re: Residential Tenancy Agreement [address of rental premises]

On [date] I was asked to be a co-tenant on a residential tenancy agreement at the above premises. I believe the purpose of this was in case the tenant defaulted with payment of rent.

I draw your attention to section 9(1) of the Landlord and Tenant (Rental Bonds) Act 1977, which states:

“Notwithstanding the terms of any agreement, no person as lessor of residential premises shall, in respect of a lease or proposed lease of those premises, demand or receive from another person anything, other than money, that would have the effect of securing the lessor against any failure by a lessee to comply with any terms or conditions applying to or in connection with that lease or proposed lease … ”

Section 14(1) of the same Act states:

“A person shall not enter into or make any contract or agreement, whether orally or in writing, for the purposes of, or which has the effect of, in any way, and whether directly or indirectly, defeating, evading or preventing the operation of this Act in any respect.”

Section 14(2) of the Act declares any such arrangement void and section 16 of the Act provides for a fine of up to $2,200 for a person convicted of an offence against the Act.

Accordingly, it is an offence for a landlord or real estate agent to enter into an arrangement which makes a family member or friend a co-tenant on the residential tenancy agreement in order to make them liable for the debts of the other person, even though they have no intention of living there.

I ask that you confirm in writing that you will correct the residential tenancy agreement to remove my name and show [name of tenant] as sole tenant. If you do not do this, I will lodge a complaint with the Office of Fair Trading.

Yours sincerely,

G Guarantor