Key terms in a rental lease
Before you sign, you should understand these common terms:
- Fixed-term lease: A lease with a specific start and end date (usually 6 or 12 months).
- Periodic (month-to-month) lease: A lease that has no set end date and continues until you or the landlord gives notice to end it.
- The bond: A security deposit (usually 4 weeks' rent) held by a government authority to cover any damages or unpaid rent when you move out.
- The rent: The agreed amount you pay, usually weekly or fortnightly.
Your Responsibilities as a Tenant
By signing the lease, you agree to:
- Pay rent on time: This is your most important duty.
- Keep it clean: Maintain the property in a reasonably clean condition.
- Report damage: If something breaks, you must tell the agent quickly—even if it was an accident.
- Respect the neighbours: Avoid excessive noise and follow any "house rules" or body corporate bylaws.
Landlord and agent responsibilities
The owner also has legal obligations to you:
- Safe and habitable: The home must be safe, clean, and in good repair when you move in.
- Urgent repairs: They must fix dangerous issues (like a gas leak or broken toilet) immediately.
- Quiet enjoyment: The landlord cannot just "drop by." They must give you proper notice (usually 24–48 hours) before visiting.
Bond payments and protection
Your bond money does not go into the landlord’s pocket.
- The authority: In Australia, the bond must be lodged with a state-based government body (like the RTBA in Victoria or RBO in NSW).
- The receipt: You should receive an official receipt from this government body. If you don't, contact the agent immediately.
- Protecting your money: Your best defense is a detailed condition report. This document lists every scratch and mark in the house when you move in so you aren't blamed for them later.
Rental increases
Landlords can't just raise the rent whenever they like.
- Fixed-term rules: In most cases, rent cannot be increased during a fixed-term lease unless it was written into the contract from the start.
- Notice period: They must give you written notice (usually 60 days) before an increase can start.
- Frequency: There are limits on how often rent can be raised (often only once every 12 months).
Breaking a lease
"Breaking a lease" means moving out before the end date on your contract.
- Costs: You may have to pay "re-letting fees" or continue paying rent until a new tenant is found.
- Notice: Always give as much notice as possible in writing.
- Exceptions: In some situations, such as experiencing family violence, there are special legal protections that allow you to leave without heavy penalties.
Lease transfers
A lease transfer happens when you move into a property to take over the remaining part of someone else's lease. This is common when a current tenant needs to move out early (breaking their lease) and you step in to replace them.
- Who pays? Generally, the person moving out (the original tenant) is responsible for any administration fees the rental provider charges to update the paperwork. As the person moving in, you shouldn't have to pay to join the lease, but you will need to pay your share of the bond.
- Handling the bond: Don't just hand over cash to the person leaving! The bond must be officially transferred through the Residential Tenancies Bond Authority (RTBA). You’ll need to sign a 'Tenant Transfer' form so the bond is legally held in your name. The property manager can help you through this process.
- Getting it right: Ensure the property manager or agency gives their written consent before you move in. You should also ask for a copy of the original condition report and check it against the property’s current state. This ensures you aren't held responsible for damage caused by the person who lived there before you.
