You need a written lease agreement to avoid potential disputes that could arise between you and your tenant.

‍

Without such an agreement, there is no clear understanding of who is responsible for what regarding repairs, rent payments, pet rules and other important issues.

‍

A written lease helps ensure that both parties are on the same page and have a legal document to refer to if any conflicts arise.  Here are some other specific ways lease agreements can be helpful:

‍

• It helps you list expectations when it comes to repairs. When it comes to repairs, you can use lease agreements to list all of their expectations as far as how the tenant should maintain the property. This includes detailing the tenant’s responsibility for minor repairs, such as changing lightbulbs or unclogging drains, as well as outlining what constitutes a major repair and who is responsible for its cost. 

‍

• Specify the rent’s due date. A written lease also allows you to specify exactly when rent is due and how payments should be made. It provides options in case of missed payments, or providing a grace period before eviction proceedings can begin. 

‍

• Define pet rules. In addition to repairs and rent regulations, you can use their leases to clearly define pet rules. Doing so can help avoid any potential disagreements over noise levels or damage caused by pets in rental properties. The lease should include information regarding which types of animals are allowed on the property and whether they must be registered with the local government agency or require additional things like pet bond coverage. 

‍

Having a written agreement not only sets expectations but also proves invaluable during potential disputes between tenants and property owners or any other issues related to living in a rented space as it provides an enforceable document that both parties have agreed upon in advance. 

‍

Also read: What Are the Roles and Responsibilities of a Property Manager?

‍

When it comes to renting out residential properties in Australia, there are three different types of lease agreements at your disposal: short fixed-term agreements, long fixed-term agreements, and periodic (month-to-month) agreements. 

‍

Here are their differences:

‍

• Short-fixed-term agreements are usually for periods of six months or fewer. Under this type of agreement, the tenant agrees to rent the property from the property owner over a certain period of time, while the landlord agrees to provide use of the property with specified conditions.

‍

• Long fixed-term lease agreements are typically used when tenants and property owners want to ensure stability and security over a longer period - usually between one year and five years. This type of agreement offers greater protection for both parties as each knows exactly what is expected from them throughout the contract. As with short fixed-term rental agreements, rent payments are usually made in advance on a weekly or monthly basis. 

‍

• Periodic (month-to-month) agreements offer flexibility and ease for both tenants and property owners as they require no end date. Either party can terminate them, usually with one month’s written notice but this varies from state to state.

‍

Here are a few things you need to know when organising a lease agreement for your rental property, depending on its location in Australia.

‍

Australian Capital Territory

You must be aware of their rights and obligations under the Residential Tenancies Act 1997 when writing and signing a lease agreement under the ACT. This act outlines the terms and conditions of rental agreements, as well as governs the rights of landlords and tenants.

‍

Find out more about lease agreements in the ACT here.

‍

New South Wales

Under NSW tenancy law, all rental properties must have a written tenancy agreement that details the rights and obligations of both the landlord and tenant. The landlord should provide a copy of the agreement to the tenant within 14 days of signing it.

‍

Find out more about lease agreements in NSW here.

‍

Northern Territory

Leasing agreements in the Northern Territory are governed by the Residential Tenancies Act. The act sets out the rights and obligations of landlords and tenants, as well as a range of other legal matters related to renting residential property.

‍

Find out more about lease agreements in the NT here.

‍

Queensland

In Queensland, landlords or property owners are required to use a legal document known as the General Tenancy Agreement (Form 18a). 

‍

Find out more about lease agreements in QLD here.

‍

South Australia

Leasing agreements in South Australia are governed by the Residential Tenancies Act 1995. This Act sets out the rights and obligations of landlords and tenants who enter into rental agreements in South Australia. 

‍

Find out more about lease agreements in SA here.

‍

Tasmania

When it comes to leasing agreements in Tasmania, landlords must ensure that their tenant understands the terms of their agreement and the laws regarding rental properties outlined by the Residential Tenancy Act 1997.

‍

Find out more about lease agreements in TAS here.

‍

Victoria

Lease agreements must be in writing and include all the essential conditions outlined in the Residential Tenancies Act 1997 (VIC). These conditions range from rent payment schedules, security deposits, occupancy rules, eviction notices, maintenance requirements, pet regulations and more. 

‍

Find out more about lease agreements in VIC here.

‍

Western Australia

In Western Australia, all lease agreements must be in writing and conform to local laws and regulations. All written tenancy agreements must be done using the Residential tenancy agreement (Form 1AA).

‍

Find out more about lease agreements in WA here.

‍

Writing a lease agreement is an important part of being a property owner, as it sets out the rights and obligations of each party in the tenancy. Luckily each state has provided a template for you to use but it's important to include the following information:

‍

• The name and address of the tenant and the property owner
• The period of the agreement and the dates when the agreement starts and ends (or state that the agreement is periodic)
• Details about how the tenant should pay the rent and how much rent is to be paid
• Details about what the tenant and the property owner or provider can and cannot do, known as the 'standard terms'.
• Any special terms agreed upon
• State if it’s a Fixed Term Agreement or Periodic Term Agreement

‍

It is also vital to consider all potential contingencies to ensure all the parties;’ interests are protected. This means including provisions regarding how matters will be handled in case either party defaults on its obligations.

‍

You also may choose to include clauses allowing them to enter premises for inspections or other necessary maintenance work with appropriate notice given beforehand. 

‍