Looking for important information for your residential tenancy agreement? Whether you are a landlord or tenant, Arro can assist and provide residential tenancy advice.
Typically, residential tenancies are governed by residential tenancy agreements prepared in accordance with the Residential Tenancies Act 1997 (the “Act”). When leasing a property or purchasing a property for investment, it is imperative that a rental agreement conforming with the Act is in place. This agreement, referred to as a lease or residential tenancy agreement, is a contract between the tenant and landlord, otherwise known as the renter and rental provider.
Fundamentals of rental agreement cover:
- Rent amount and payment method
- Stipulation of rent increases
- Duration of lease
- Bond amount
- Other conditions and rules, or special terms
Setting out your agreement:
Written agreements must be on the template distributed by Consumer Affairs Victoria (CAV), pursuant to Section 26 of the Act. All parties involved must be given a copy of the completed template to review prior to signing.
Rental providers must be aware that unsigned rental agreements may still be valid if rent payments have been accepted or keys handed, as through implied conduct, the agreement can operate as if it had been signed.
The rental agreement may also include:
Section 27A of the Act notes that additional clauses may be inserted into your rental agreement other than those listed above. However, this is only the case should the additional terms not change or remove either tenant or rental provider responsibilities under the law (in particular the Act); OR the change is a prohibited term. Additional terms may be negotiated, however, must be seen as valid.
What CAN’T be included in a rental agreement?
Victoria introduced new rental laws on 29 March 2021. Pursuant to Section 27B of the Act, some clauses are PROHIBITED from being included in agreements.
Please note, older agreements executed prior to 29 March 2021 may also be disputed if they contain any prohibited terms.
Some prohibited terms are listed:
- The requirement of rent being paid in a manner which attracts additional fees.
- The compulsion for the tenant to take out insurance – albeit it is recommended to do so to cover personal belongings.
- The requirement to indemnify the rental provider, thereby, protecting or compensating the rental provider if damage has occurred.
- On the claim that if the agreement is breached, rent payable may be reduced or will be paid a rebate upon.
Arro Property is ready to assist you whether you are a renter or rental provider.
Please feel free to reach out if you have any further questions.