What is a Lease Agreement?
A Lease Agreement is a contract between a landlord (lessor) and a tenant for the use of residential property.
It outlines the terms and conditions for renting property, including rent payments, bond deposits, and notice requirements. A contract can be for renting houses, flats, apartments, basement suites, and other types of residential properties.
Looking to rent a commercial space? Use LawDepot’s Commercial Lease Agreement to easily create your contract.
Lease Agreement versus Residential Tenancy Agreement
There isn’t a legal difference between a lease and a tenancy agreement in Australia. Lease is a more general term, whereas some people may use residential tenancy to be more specific when discussing their agreement for a residential property. In Australia, Lease Agreements are also commonly referred to as rental agreements or rental contracts.
Purpose of a Lease Agreement
The primary purpose of creating a Lease Agreement is to protect both parties. Although verbal contracts may be valid, a written agreement ensures clarity and accountability for all obligations.
If a dispute arises between a landlord and tenant, a Lease Agreement can serve as reliable evidence to help resolve issues quickly and fairly.
It defines key terms, including rent amount, security deposit, lease duration, and payment schedule. It also outlines the tenant’s rights, such as property use and access (e.g., parking), as well as the landlord’s obligations, like disclosures, notices, and lawful rent increases.
Types of Lease Agreements
There are two types of Lease Agreements that landlords and tenants can use in Australia. These are:
Fixed-term periods
Fixed-term periods where the rental agreement is set for a predetermined amount of time (e.g., six months or one year). When these agreements end, and neither party terminates the lease, it will convert to a periodic lease. Alternatively, a new fixed-term agreement can be made if tenants wish to continue renting the property.
Periodic leases
Periodic leases have no set end date and automatically renew at the end of a specified period. The agreement comes to an end when the tenant or landlord terminates the lease under the jurisdiction’s Residential Tenancies Act. A typical example of a periodic tenancy is a month-to-month lease.
What does a Lease Agreement include?
A Lease Agreement includes all the key terms and conditions for renting residential property, along with the landlord’s and tenant’s responsibilities, such as:
- Tenancy details, including the type of tenancy (i.e., fixed-term or periodic), as well as the start and end dates
- Property details like the location and address, or any additional information state or territory legislation requires in an agreement (e.g., access to parking or pet restrictions)
- Landlord and tenant details (e.g., names and addresses), including whether there are multiple tenants or landlords
- Rent requirements, including how often it will be paid, how much is owed, and the method of payment
- Rental bond (security) deposit details for damages, or in the event a tenant fails to pay rent
- Terms for service documents (e.g., how notices can be served to tenants and landlords)
Complete LawDepot’s questionnaire to customise, download, or print a PDF in minutes. Our Lease Agreement template enables you to include additional clauses specific to your rental property, while also prompting you to add requirements relevant to your jurisdiction. For example, in New South Wales, you can name approved tradespeople in your agreement.
Once completed, any additional guidance on details such as required disclosures or state regulations will be provided in your final document.
| Easily sign and request signatures from your new tenants with LawDepot’s eSign. |
Are Lease Agreements legally binding?
Yes, Lease Agreements are legally binding when they comply with the Residential Tenancies Act in the relevant jurisdiction. LawDepot’s customisable rental contract is available for the following jurisdictions and their legislations:
Each jurisdiction will have requirements that landlords and tenants must follow. This can include instances when rent increases occur, any records that landlords are required to maintain, or information that landlords must provide to tenants. For example, in South Australia, tenants are required to receive a copy of their signed lease within 21 days of signing.
Always check your local legislation’s requirements for landlords and tenants when renting property.
Is there a cooling-off period for rental agreements?
No, most Australian states and territories don’t have cooling-off periods. Typically, once an agreement is signed, both parties are legally bound to the terms and conditions in the contract.
If you have questions about your contract or what it covers before signing, consult a solicitor for further advice.
