A rental agreement, also known in the past as a lease or residential tenancy agreement, is a contract between the tenant (renter) and the landlord (rental provider). There are three main types of rental agreements for homes, units, and apartments.
Different types of rental agreements which can be found at https://www.ezlandlordforms.com can apply to rooming houses, caravan parks, and tenants who live in residential parks or villages.
What a Rental Agreement (Lease) Should Include
A rental agreement should clearly state:
- the amount of rent and how it should be paid
- how rent increases will be worked out
- the length and type of agreement
- the bond amount
- any other rules or conditions
- any extra terms that apply
You can read more about renters’ rights when signing a rental agreement.
If you are signing a written rental agreement, you must use the ‘prescribed form’ as required by Victorian rental law.
Extra terms and conditions can be added, as long as they are not against the law. You must not include anything that takes away the legal rights and duties of either the renter or the rental provider.
There is no cooling-off period for rental agreements, so you should fully understand and accept all the terms before signing.
Types of Residential Rental Agreements
There are three types of residential rental agreements:
- Short fixed-term agreements
- Long fixed-term agreements
- Periodic (month-to-month) agreements
Short Fixed-Term Agreements
These are the most common and usually last 6 or 12 months, though they can last up to 5 years. They can be either written or spoken, but written agreements are recommended.
The proper form to use is:
Form 1 – Residential rental agreement
When a short fixed-term agreement ends and the tenant stays without signing a new one, it automatically becomes a month-to-month agreement.
Long Fixed-Term Agreements
These agreements are for longer than 5 years. Some people choose this option for more long-term security. It also gives both parties the chance to agree on things like rent increases and property changes before the agreement is signed.
There are a few rules that are different for long-term agreements:
- Bond top-ups: The landlord may ask for an extra bond after 5 years if a new agreement of 5 or more years is made.
- Making changes to the property: Renters and landlords can agree in advance on changes. If written into the agreement, renters do not need further permission to make those changes.
- Ending the agreement early: Renters may need to pay one month’s rent for each full year left on the agreement, up to 6 months maximum.
Long-term agreements must be in writing. If not, renters can end the agreement at any time with 28 days’ notice and no penalty.
The proper form to use is:
Form 2 – Residential rental agreement for a fixed term of more than 5 years
If a long-term agreement ends and the renter stays, it becomes a month-to-month agreement. The rules will follow the standard rules for fixed-term agreements of 5 years or less at that point.
Periodic (Month-to-Month) Agreements
These do not have an end date. A fixed-term agreement becomes a month-to-month agreement automatically when it ends, unless the renter or landlord gives notice to end it or signs a new fixed-term agreement.
Usually, a new agreement is not signed when the fixed-term ends and it rolls into a month-to-month lease. But if either the renter or landlord wants to have a written version of the month-to-month agreement, they must use the same form as for short-term leases:
Form 1 – Residential rental agreement
If the original agreement was for 5 years or less, its rules still apply to the new month-to-month agreement.
If a long-term agreement ends and turns into a month-to-month lease, it will follow the standard rules for leases of 5 years or less at that time.
Before Moving In
Before the renter moves in, the landlord or their agent must give the renter:
- a copy of the rental agreement if it’s written
- a copy of the Renters Guide (paper or digital, depending on what was agreed)
- a phone number for urgent repairs outside business hours
- the full name, mailing address, and email address (if agreed) of the landlord or agent
- one set of keys for each person who signed the agreement
- a condition report (2 paper copies or 1 electronic version)
Reporting a Problem with an Advertised Rental
If you are a potential renter and have concerns about a rental property listing, you can report the issue. To find out more, visit: Report an issue with an advertised rental property.
Changing the Type of Agreement
Renters and landlords can change the type of agreement by either:
- agreeing to end the current agreement early and starting a new one
- waiting until the current agreement ends, then signing a new one
If no action is taken when a fixed-term agreement ends, it automatically becomes a month-to-month agreement. However, both parties can choose to sign another fixed-term agreement instead.
Terms That Are Not Allowed in a Rental Agreement
Agreements can have extra terms, but some conditions are not allowed by law.
If any of these are included, they are not valid. The landlord might also face penalties for including them.
Tenants cannot be required to:
- get insurance
- pay extra rent or fees for breaking the agreement
- pay for preparing the agreement
- pay rent in a way that includes extra charges (except normal bank fees)
- use a specific service provider unless it’s an embedded network
- pay for or handle maintenance of safety equipment that is the landlord’s job
- cover or take responsibility for the landlord’s liabilities
The agreement also cannot say that:
- rent will be lowered if the renter follows the rules
- the renter will be given rewards for following the rules
- the renter must agree to another contract without reviewing it in writing first
- the renter cannot ask for compensation if the home isn’t available on time
- the renter has to pay the landlord’s legal costs to file a case
- the renter must pay insurance excess on the landlord’s policy by default
- the renter has to pay a fixed fee to end the agreement early unless the fee was clearly explained in the agreement