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Leasing Property residential

The Residential Tenancies Act

This is the legislation that sets out the rules and obligations of both the landlord (the person who owns the property) and the tenant (the renter).

Residential Tenancy Agreement

When you lease a residential property, you will generally be given a form called a Residential Tenancy Agreement. This is a legal contract between the landlord and the tenant. This contract will often include certain requirements of the tenant, such as paying for water usage, not having certain pets etc., which you agree to when you sign the contract. The terms and conditions in the contract should be reasonable.

Before you move in you should complete a Condition report, which details what condition the property is in; whether there are marks on the walls, carpet stains etc. This is important, to avoid any disputes at the end of your tenancy.

Whoever signs the lease is generally liable for the period of tenancy in the contract, even if they move out of the property before the end of the period, unless the landlord agrees to tenancy changes.

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Terms of a lease

When you rent a property you will generally have to pay a bond, which is deposited with NSW Fair Trading. The bond amount can vary, but there are limits on how much it can be. This is the landlord’s safeguard in the event that the property is damaged during the tenancy period.

The term of the lease is fixed (eg. 12 months) and during that time the rent cannot be raised. At the end of the fixed period, the landlord can increase the rent but must give the tenant 60 days notice.
Once the fixed term agreement expires, if the tenant does not sign another contract then the agreement becomes a “Continuing agreement”.

The landlord is obliged to pay for general maintenance and repairs of the property.
The landlord (or their agent) may arrange inspections from time to time, to check on the state of the property, but they must give 7 days’ notice.

Consumer Trading & Tenancy Tribunal

This is the body that deals with disputes between landlords and tenants. These might include things like the eviction of a tenant, a landlord’s failure to repair or maintain the property, steep rent increases etc.  

Smoke alarms

An important amendment to the Residential Tenancy Act concerns smoke alarms. All residential properties must now have smoke alarms fitted in the vicinity of the bedroom/s. The landlord is responsible for installing the alarm. The tenant is generally responsible for replacing the battery in the alarm during their tenancy.
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