A lease, also known as a residential tenancy agreement, states what you agree to do while you're a renter (also known as a tenant) and what the rental provider (also known as a landlord) or real estate agent to agrees to do as the owner of the property. Agreements can be verbal or written, however a written document is the best way to make sure everyone understands their rights and obligations.
Our know your tenant rights page has more information about your rights and responsibilities as a tenant.
Fixed term vs periodic agreements
Leases usually cover a fixed period of time, for example 12 months, and have a definite start and finish date. They can be periodic, which only covers your tenancy on a month-by-month basis. If you stay beyond the end of a fixed term lease, the tenancy automatically becomes periodic, until the parties sign a new fixed term lease.
What am I signing?
A lease should always include the:
- address or location of the rental property
- total amount of rent and how often it is paid
- start date and agreed length of time for the tenancy
- name and address of the rental provider.
The document may also contain some specific expectations, for example:
- gardens and lawns must be well-maintained
- no repairs or alterations can be made without written permission (including picture hooks, nails or adhesive tape)
- carpets must be professionally cleaned when the tenant vacates
- pets and animals may not be kept without written permission.
You can ask to remove, add or change particular conditions in your lease, but make sure this is put in writing and that the agreement keeps within the requirements of the Residential Tenancies Act 1997.
Ask for a copy of the lease before the date of signing so you have time to read through every part of the document. Once signed, the rental provider must provide you with a copy of the lease within fourteen days. Keep a file with all your rental documents and notes on conversations and store it somewhere safe.
For more information about what to consider before signing, visit Consumer Affairs Victoria's knowing your rights when signing an agreement page.
Bond and advance payments
You'll probably be asked to pay a bond when you sign the lease. This is a refundable amount paid at the start of your tenancy, usually equal to one month's rent. The rental provider is then legally required to deposit your bond with the Residential Tenancies Bond Authority (RTBA) and provide you with a copy of the bond lodgement form.
Renters usually pay a proportion of the rent in advance. The maximum amount that a rental provider can legally request is one month's rent if you pay monthly, or two weeks rent if you pay weekly. Contact Consumer Affairs Victoria if you think you are being asked for too much rent in advance or bond. Ask for a receipt from the real estate agent if you pay your bond or rent in cash.
Consumer Affairs Victoria also provide information about rent, bonds, bills and condition reports.
When you're given the keys, you should also receive a written room-by-room description of the condition of the property. This document is a 'condition report' and includes floors, walls, windows, doors, furniture and any other features.
You need to send the document back within a fixed period of time, so check your rental property thoroughly and write down any extra observations of damages, carpet stains, torn fly-wire screens, extra picture hooks etc. that aren't covered in the report.
When you apply to get your bond back, the condition report will be used to measure how well you've looked after the property. Take photographs as extra evidence, and keep a copy of the report for your file.
Breaking a lease
Once the lease is signed, it's a legal document for a fixed period of time. It's expensive to change or 'break' a lease. But sometimes things happen that are beyond your control and a lease may have to be broken.
If you should ever need it, Tenants Victoria provides some excellent information about breaking a lease.
Links
Tenants Victoria
For residential tenants living in Victoria who require information on their legal rights.
Consumer Affairs Victoria - renting
Consumer Affairs has heaps of advice for renters, from signing rental agreements to ending a lease.
