How to Read a Lease Agreement: Plain-English Breakdown

Every Australian lease is either fixed term or periodic.

A fixed-term lease (also called a term tenancy) locks in both parties for a set period — usually 6 or 12 months. Neither party can end it early without consequences unless there are specific grounds. At the end of a fixed term, it either converts to a periodic tenancy, is renewed, or ends with appropriate notice.

A periodic tenancy has no fixed end date — it continues week to week or month to month. Either party can end it with the appropriate notice. Periodic tenancies give you more flexibility but less security.

Check your lease: look for the section headed 'Tenancy type', 'Term', or 'Tenancy period'.

The lease will state the weekly or monthly rent amount, the due date, and the preferred payment method. Read these carefully:

Any rent increase during a fixed-term lease must be in the lease itself. If it is not written in the lease, it is not enforceable during the term.

• Is rent stated as weekly or monthly? Confirm the exact amount and when it is due.
• The lease may specify rent must be paid by direct deposit to a specific account. Make sure you have those details.
• Note whether there is a rent review clause — in some fixed-term leases, rent can be increased during the term if this is explicitly stated. If there is no review clause, your rent cannot be increased during the fixed term.

The lease will state the bond amount — in most states, capped at four weeks rent for residential tenancies. The lease should also state where the bond is to be lodged.

By law in all states, the bond must be lodged with the relevant state bond authority within a specified timeframe (usually within 10 business days of receipt). You should receive a receipt for your bond from the bond authority — not just from the landlord or agent.

If you do not receive an official bond lodgement receipt within a few weeks of paying, follow up. Your bond is not protected until it is lodged with the authority.

Every lease has a general conditions section and often a special conditions section. Read the special conditions carefully — this is where unusual or property-specific requirements are added.

Common special conditions include:

If a special condition seems unusual or onerous, ask questions before you sign. Once you sign, you are generally bound by it unless it conflicts with legislation.

• Restrictions on pets (though in many states, blanket pet bans are not enforceable)
• Garden maintenance requirements (lawn mowing, watering)
• Air conditioning filter cleaning obligations
• Restrictions on smoking (a 'no smoking indoors' clause is common and enforceable)
• Requirements for professional cleaning or carpet cleaning at the end of the tenancy (check if this was done at move-in, as it determines whether it is enforceable at move-out)

The lease will have a section on maintenance and repairs — read it in context with your statutory rights, which override anything more restrictive in the lease.

Typically, tenants are responsible for: keeping the property clean and tidy, not causing damage, notifying the landlord promptly of damage or repair needs, and replacing consumables like light bulbs.

Landlords are responsible for: structural repairs, maintaining all fixtures and appliances provided with the property, and ensuring the property meets minimum standards.

Any clause attempting to make tenants responsible for things the landlord is legally obligated to maintain is likely unenforceable — but you need to know this.

The lease will state the notice periods required to end the tenancy. These must meet the statutory minimums in your state — a lease cannot give you fewer rights than the legislation.

For ending a periodic tenancy: you typically need to give 21 days (VIC) or 14–21 days (NSW, QLD) written notice. Your landlord must give considerably more.

For fixed-term leases: you typically cannot end early without break lease costs unless there are specific grounds. The end of a fixed term triggers its own notice requirements — check these carefully if you intend to leave at expiry.