3 Understanding your rental agreement – five things to keep in mind

It is always exciting when you move into your own place, whether you are purchasing or renting. But remember, just like a mortgage, signing on for a lease is more than a big step: it is a legally binding agreement. Wherever you are renting real estate, western suburbs, Melbourne to Allura to inner city Glebe, you are bound by your rental agreement. Here are five things to keep in mind.

1. You have to fill out an application form first

It seems you have to fill out an application form for almost everything these days, and a rental property is no exception. Once you find your dream rental property, you’ll need to fill out a tenancy application form, which enables the landlord to check your references and credit history. If your application is successful, the landlord will give you your rental agreement.

2. Your agreement has a time frame tied to it

As with any other document, make sure you read your rental agreement carefully. The first thing to look out for is the time frame tied to the agreement. Is the contract for a fixed term or periodic tenancy? The latter is usually renewed on a weekly or monthly period and

the former is usually for a term of six or twelve months, which can later be extended. Most tenancy agreements in Australia are for a fixed term.

3. Your agreement contains important information

Another important nugget of information to look out for in your rental agreement is a report that outlines the condition of the property and premises. This is mainly on hand in case a dispute later arises, so make sure you read this very carefully and check the property over to make sure the report is correct. Once you have signed on the dotted line, you have committed, so be careful!

The rental agreement will also include important information such as the property's address, the start and end dates of the lease, the amount of rent to be paid each week or month and if any costs will be incurred if the lease is broken before the end of the contract. 

4. You have obligations

As a tenant, you need to follow certain legal obligations. While these can vary from state to state – so it is best to make sure you obtain a copy of the laws in your state or territory – they do contain a few commonalities Australia-wide.

Firstly, you’ll often be required to pay a rental bond, which is usually the equivalent of one or two month’s rent. This is a security deposit that will be returned to you when you leave the rental property if there is no proven damage caused to the house by you, but will be used to repair any damage you cause during your tenancy.

You have a responsibility to take care of the property and are required to inform your landlord of any property damage as soon as possible. You will be held responsible for any damage done to the property by either yourself or anyone on the premises with your consent.

When you move out, the property needs to be in the same condition as when you moved in, aside from “fair” wear and tear. For example, if you only live there for a year, the house should be in almost identical condition as when you moved in, but expectations would be different if you remained a tenant for nine or ten years. It is a good idea to keep a dated photographic record of the property during your tenancy for these purposes.

If you violate your legal requirements as a tenant, your landlord is legally allowed to begin proceedings to evict you by reporting you to your state’s Tenancy Authority or Tribunal.

5. You have rights

Despite your obligations, your landlord also has legal requirements. If they are in breach of these, you are legally able to report them to your state’s Tenancy Authority or Tribunal for mediation.

Landlords must provide tenants with living premises that are both fit to live in and in reasonable repair. They must also fit smoke alarms and fix property damage requiring urgent repair, such as burst water mains, blocked toilets, gas leaks or electrical faults.

If something requires repair, you need to inform the landlord – in writing if possible – informing them the damage was not your fault and detailing what the problem is.

If the landlord cannot be reached or refuses to arrange repairs, you can arrange for them to be done but will need to document the process, showing the damage was not caused by you in a negligent or deliberate manner and that you made attempts to contact the landlord and gave them time to arrange the repairs. You’ll also need to arrange the repairs to be performed by a licensed tradesperson and keep all your receipts to give your landlord for reimbursement. If reimbursement is not forthcoming, you can apply to your state’s Tenancy Authority or Tribunal for assistance.

Once a landlord has agreed you may keep pets on the property, they cannot later change their minds. If they do retract this agreement, you can refer the complaint to the Tenancy Tribunal.

About the Author:

Alexandra Roach is a journalist and former rent-ee. While she has never rented real estate, western suburbs, Melbourne or Allura, she has rented in Turramurra, where she had a lovely landlord, for which she is forever grateful.