Signing a lease in Australia: which parts should you read closely?
A lease (or residential tenancy agreement) is a legal document that binds both parties — the tenant and the landlord. Signing without reading it closely can leave you bound by terms you weren’t aware of, especially when you want to move out early or there is a dispute.
Two types of tenancy agreement
Fixed-term lease
You commit to renting for a set period — usually 6 or 12 months. During this time:
- The landlord cannot ask you to leave without a valid legal reason
- You also cannot leave without consequences — see the break lease section below
- The rent usually cannot be increased within the fixed term (depending on the state)
A fixed-term lease suits you if you want stability and know you will be staying for at least that period.
Periodic tenancy
Also called “month-to-month” or “week-to-week” — it continues automatically with no fixed end date. Either party can end it by giving notice in line with the state’s rules.
A periodic tenancy is more flexible but also less stable — the landlord can end it with the required notice (usually a few weeks to a few months, depending on the state and the reason).
Moving from fixed-term to periodic
When a fixed term ends, if neither party signs a new agreement and you stay on, the tenancy usually rolls over to periodic automatically. This is not necessarily a bad thing — but know it in advance so it doesn’t catch you out.
Key clauses to read closely
Rent increase clause
The lease may set out the conditions for raising the rent — when it can be raised, how often, and how it will be notified. Each state’s law limits the frequency and process of rent increases. Check: how often can the rent be increased under your lease?
Break lease (ending early)
If you need to leave before the fixed term ends, you may have to pay a break-lease fee. This can include:
- Rent for the time the property sits empty until a new tenant is found
- The cost of advertising for a new tenant
- The agent’s management fee
The exact amount depends on the lease and the state — some states cap or standardise it. Read this clause carefully before signing.
Pets clause
The default lease usually does not allow pets — and if you breach this, it can be a valid reason to end the tenancy. If you have or plan to have a pet:
- Ask explicitly before signing
- Request that a clause allowing the pet be written into the lease
- Be aware that the law on the right to keep pets is changing in some states — check the latest rules in your state
Subletting clause
You usually cannot sublet all or part of the property without the landlord’s written consent. Breaching this can lead to the tenancy being ended.
Repairs and maintenance clause
The lease usually sets out each party’s obligations: the landlord must keep the property in a liveable condition, and the tenant must report damage promptly and not cause deliberate damage.
The state’s standard agreement
Each state has a standard form agreement issued by the state authority. An agent cannot simply strip away the basic tenant rights set out in law — even if such a clause is in the lease, it has no legal effect if it conflicts with the law.
Clauses added by the agent or landlord (special conditions) are valid unless they breach state law. If you come across a special condition you don’t understand or aren’t comfortable with, ask — or consult the tenant advocacy service in your state.
Your right to a condition report before signing
Before you sign or when you move in, you have the right to receive a condition report — a document recording the property’s current state. This is an important right. Don’t skip this step — see the related guide on the bond and condition report for the detail.
Don’t sign under pressure
A competitive market can create pressure to decide quickly. But once you have signed, you are legally bound. If you need more time to read, say so plainly to the agent — a professional agent will understand. If they refuse to give you the time, that too tells you something about how they will manage the property later.