What do I need to know before signing a tenancy agreement?

You should always ensure your tenancy agreement has the correct terms before signing it. This is because a lease is a legal document between you and your landlord that allows you to live in the property on certain terms. Here are a few things to consider before signing on the dotted line.

Types of tenancy agreements

There are two main types of agreements:

1. Fixed term agreement

A fixed term agreement allows you to live in your rental property for a specified period of time, usually 6 or 12 months. During this time, the terms of the lease provide security for you and the landlord. Penalties apply for breaking the contract before it ends. At the end of the agreement, you can decide to renew or you can consider moving to another property after providing notice.

2. Periodic agreement

A periodic or continuing agreement is where there is no specific end date. This usually begins once the initial fixed term agreement ends or is not renewed. Both the landlord and tenant must abide by the original agreement and the agreement can end at any time without penalties.

The rental price might increase during this time. Try not to take this personally. Remember, the landlord is investing in property to make a return, so if market rental values have increased, they will often ask you to pay the going rate.

Additional terms

Tenancy agreements are flexible, so terms might be included or deleted before signing. Here are some examples of these types of terms:

• Including or excluding a break lease fee
• Allowing tenants to keep pets on the premises.
• Requiring the usage of a specified person or business for repairs

If these additional terms conflict with the standard agreement or the law, the contract might become unenforceable.

Additionally, the landlord must not conceal the following information about the property:

• Serious flooding or bushfire damage
• Significant health or safety risks
• Serious violent crimes committed at the property
• Selling the property during your tenancy
• Pending legal proceedings related to the property.

Once you move in…

Carefully inspect the property

Once you have moved in, you will need to check and sign a condition report. Inspect the interiors and exteriors carefully to identify urgent repairs and other matters. Take note of small things like peeling paint and wear and tear. This is important because your property manager will use this document to compare the condition of the property when you leave.

“Ideally, take photos of everything you are documenting in the condition report,” said homes.com.au Founder & Managing Director, Pat Carbone.

Keep documentation

Keep a copy of your tenancy agreement and the condition report. If issues arise, you might need to refer to these documents to check your rights and obligations.