Tenancy Agreement
Lawyers & Barristers

Yes. It is very important that you have a tenancy agreement, also known as a lease, when renting property. Even if you know the person, or it is an informal arrangement, you should ensure that all agreements made are in writing and signed by both parties.

This is because the signed agreement forms a contract, which has legal consequences if broken. This is essential to secure your rights under the agreement if anything should go wrong. It is advised that no agreements are verbally made, and if they are they should be supported by a subsequent written agreement.

Even if you think it would be easier to have a verbal agreement or you think you can trust the person, circumstances can change and you need to protect your rights.

Generally there are two types of leases, fixed term and periodic. Fixed term leases are for a set period of time, usually 6 or 12 months. Where periodic leases are more flexible and are for shorter periods of time, for example they can be from month to month or week to week. If you are unsure as to where you are going to be in the future, or know you will not be leasing the property for a whole year a period lease is advised, if it is available. A periodic lease may be more uncertain but it prevents the trouble and costs associated with breaking a lease.

The first step would be to look at the Residential Tenancies Act 1987 (WA). The Act was drafted in order to assist tenants and sets out your rights logically. However, there is a lot to go through and if you do not understand anything you can always seek legal advice if you wish to do so.

Generally the terms applicable to your tenancy will be set out in your lease. It is important that you read all the clauses in the lease and understand them before you sign it. Generally all leases provide the same general terms and conditions of lease.

However, a landlord can include special conditions in addition which you must abide by. It is important that you read these and agree to them before you sign. Signing the agreement demonstrates that you agree to everything in the lease.

Thus if you are not sure about a clause DO NOT sign it. Gain legal advice and be comfortable with the terms before an agreement is made.

There are two main events that you should observe when you move into a rental property:

• Appropriate bond amounts and signing with a bond administrator
• Pre-condition report

When you rent a property you are required to pay a bond. This is generally an amount of money equivalent to 4 weeks rent. This amount is paid on top of your first rent payment, and is held on trust by a bond administrator.

The bond acts as security for the owner of the property, so that costs can be covered if you default on the lease in any way i.e. cause unreasonable damage. It is important that this bond is held by a legitimate bond administrator and that you sign for the amount held.

This is so at the end of your tenancy, the bond cannot be released to anybody without you first consenting and signing for it.

This is essential to ensure that the landlord does not have any access to the money and cannot take it without your consent for any alleged costs.

There are two main things that you should do before you move into a rental property:

• Pay the bond to a bond administrator
• Get a Pre-condition report

When you rent a property you are required to pay a bond. This is generally an amount of money equivalent to 4 weeks rent. This amount is paid on top of your first rent payment and is held on trust by a bond administrator. The bond acts as security for the landlord. This money will be used by the landlord if you default on the lease in any way i.e. cause unreasonable damage.

It is important that this bond is held by a legitimate bond administrator. This ensures that the bond isn’t released to anybody else if you have not defaulted on your lease.

A pre-condition report should be provided to you when you take possession of the property. This report covers the condition of the house and all items inside. It is important that you walk through the house with the pre-condition report and check that it is accurate. If something is wrong you should annotate the report and bring it to the attention of the landlord.

It is important that you check everything and document all defects to avoid being liable for additional costs of repair or cleaning.

If you find yourself in a bond dispute or a dispute about responsibility for certain expenses, you should consult a property lawyer for advice on your rights.

As a tenant, you are paying someone else for the right to live in their property. You are entitled to certain rights and you also have certain obligations.

To use the premises in a tenant-like manner

You must take proper care of the property while you are living there. You and your guests cannot damage the property. If the property is damaged, you may have to repair it.

However you do not have an obligation to repair general wear and tear over time. If you spot any problems, contact a lawyer to find out if you are responsible in each situation. If it is discovered that the damage is caused by general wear and tear, your lawyer will notify your landlord, who will be obliged to make appropriate repairs.

To deliver up possession

This means that when your lease ends, you must not merely vacate the premises, but ensure that the landlord is able to retake possession. All rubbish and personal items must be cleared, and the property returned to the state it was originally in when you first moved in.

Your contract will state what further rights and obligations you have. In the event of a dispute with your landlord, bring your lease contract to your lawyer for sound legal advice.

If you wish to move out of the property before the lease ends, this is called breaking the lease. There will be a clause in your lease which states the consequences for doing so. In general, notice must be given to the landlord within 21 days of you physically moving out. Check with your lawyer to see if this applies to you.

If you break a lease, there will be consequences. This could mean that you must continue to pay rent until a new tenant is found and moves in, or that you must pay for the cost of advertising for a new tenant. This can be quite costly and must be seriously considered before you break a lease.

The law on this area is complex and you should seek quality legal advice before making a decision.

Your rights and responsibilities are marked out under the lease contract, any verbal agreements you may have with the landlord, and what the Residential Tenancies Act says. There are many points of law and obligations that determine what can happen to you. It is important that you get sound legal advice if your landlord is taking you to court and suing you for money.

Decide on what type of lease you want

Generally there are two types of leases: fixed term and periodic leases. Fixed term leases are for a set period of time, usually 6 or 12 months. Periodic leases are more flexible and last for shorter periods of time, for example from month to month or week to week.

If you are unsure about your future plans, or know you will not be leasing the property for a whole year a period lease is advised, if it is available. A periodic lease may be more uncertain but it avoids the trouble and costs associated with breaking a lease.

Decide on how much control you want over your property. Your lawyer can help you draft a lease agreement that gives you flexible termination rights such as an option to renew or to end the lease as soon as possible.

Determine how much you want to set your bond at

Setting your bond is largely a decision that is up to you, but there are legal limits on how high you can set your bond at depending on what kind of lease you have. Consult a lawyer to help you draft your lease arrangement so that you comply with the law.

As the landlord of the property, you are renting out your premises to someone else for a financial benefit. You are entitled to certain rights and have certain obligations.

Allow the tenant to quietly enjoy the property

You must allow your tenant to occupy the property peacefully and without undue and unwanted interruption from you. You still have a right to inspect the property, but this must be at a reasonable frequency and time and with proper notification.

Your rights to inspect the property should be in the lease contract. Consult a lawyer if you are unsure about how to serve notice to a tenant to inspect the property.

The property must be fit for human habitation

At the start of the lease term, you must ensure that the property is fit for human habitation. If it is not, then you must endeavour to get renovation and sanitation services where necessary.

Inspect the condition of the property

Inspect the property and compare it with your pre-condition to ensure that the property is back in the same condition it was at the start of your tenants moving in.

If there are any maintenance and repairs that need to be done, you should notify the tenant to seek their explanation and give them time to rectify the damage. If they do not agree on their responsibility to repair the damage, you have rights to make the repairs yourself and deduct this expense from the bond payments. If there are disputes as to the costs of maintenance and repair, seek legal advice.

Repay the tenant’s bond

The tenant’s bond was paid at the start of the tenancy as security for the lease. This money does not technically belong to you, and you must give it back to your tenants at the end of the lease if they have not defaulted on the lease contract at all.

If you wish to terminate the tenancy before the end date, you must give the tenant written notice to this effect. The notice period required will be different depending on the terms of individual contracts. If your tenant chose to accept your termination, you may have to compensate them for an amount which depends on the terms of your contract.

Sometimes, there can be disagreement and issues with terminating a lease early. If you face resistance from your tenant, contact a lawyer for advice on your rights and what you can do next.