What is a rental agreement?

A rental agreement, also called a residential tenancy agreement or lease, is the written contract between a landlord and a tenant that sets out the terms on which the tenant occupies a residential property. It is governed by state and territory legislation, with each jurisdiction running its own version of a Residential Tenancies Act.

All Australian rental agreements must include certain core elements. The names of the landlord and tenant, the address of the property, the rent amount and how often it is paid, the length of the tenancy (typically six or twelve months for an initial fixed term, then continuing month-to-month as a periodic tenancy), the bond amount, and any special conditions about pets, smoking, or modifications must all be stated. Most states publish a standard form residential tenancy agreement that landlords must use, available from the relevant fair trading or consumer affairs agency.

Landlords have a set of legal obligations. They must provide the property in a reasonably clean and habitable condition, complete repairs in a reasonable time (with urgent repairs handled immediately), respect the tenant's right to quiet enjoyment, give proper notice before inspections (typically seven days), and follow the prescribed process for rent increases, terminations, and evictions. Tenants must pay rent on time, keep the property in reasonable condition, allow access after proper notice, and report damage or repairs needed.

A condition report, completed at the start and end of the tenancy, records the state of the property and is critical evidence if there are later disputes about damage and the bond. Recent reforms in several states have ended no-grounds evictions for fixed-term tenancies, limited rent increases to once every twelve months, and improved standards for minimum energy efficiency and pet keeping. Disputes between landlords and tenants are heard by the state-based residential tenancies tribunals rather than ordinary courts.