Tenancy Agreements - Why you need one

If this is your first time negotiating the details of a Tenancy Agreement, it’s easy to feel overwhelmed. However, a clear understanding of the obligations of both parties provides peace of mind and starts the landlord-tenant relationship off on the right foot. 

What is a Tenancy Agreement and why do I need one?

A written and signed Tenancy Agreement is a legal requirement. This is a record of what the rental property owner and tenant have agreed. It covers both the information about the property and the specifics of the tenancy. A property owner, or a property manager acting on their behalf, and the tenant need to sign the Tenancy Agreement. Both parties should keep a copy. 

A verbal offer of a tenancy, implying that you have entered into a tenancy agreement, or intend to provide a written tenancy agreement is also deemed to be a tenancy agreement. However, in this case, the landlord could be prosecuted for failing to provide a signed, written agreement. A Tenancy Agreement (verbal or written) is a binding contract between you and the tenant, so it’s important that everyone reads all the information and agrees on the key information.

What information is included in a Tenancy Agreement?

The Residential Tenancy Act requires that certain essential pieces of information are included in writing within a new Tenancy Agreement.

1. The full names and contact addresses of the landlord and tenant(s). Include email addresses and mobile phone numbers if you know them.
2. The address of the rental property.
3. The date the tenancy agreement is signed.
4. The date the tenancy will begin.
5. An address for both the tenant and the property owner and/or the property management company. If a landlord or tenant provides an electronic address for service as an additional address for service, you can use it to serve notices.
6. If the property owner isn’t included in the agreement, the property manager takes on their responsibilities. This includes any Tenancy Tribunal work orders that are issued, and the actions or lack of action, of the property owner.
7. Whether the tenant is under the age of 18.
8. The amount of any bond charged.
9. The rent amount, and frequency of payments and due date.
10. How the rent will be paid (for example, a bank account number). 
11. The bank details for the rental deposits. 
12. A list of any chattels (like furniture, curtains and other fittings) provided by the landlord.
13. If the tenancy is a fixed-term tenancy, the date the tenancy will end.
14. A signed healthy homes compliance statement. A separately signed statement with details of the property’s current level of compliance with the healthy homes standards must be included with most new, renewed or varied tenancy agreements. Some of this information may already be provided as part of the insulation statement and does not need to be completed again in the new compliance statement. 
15. An insurance statement provided by the property owner to confirm insurance details to cover careless damage caused by the tenant that includes the applicable excess. Alternatively, a statement to confirm that the property is not insured is required.   

Who should sign a Tenancy Agreement?

Both Parties. Every Tenancy Agreement should include the full legal names of the tenant and property owner. If you’ve teamed up with Quinovic or any other property manager, you will also need to include the property manager as a named party on the agreement, as well as their contact details. The tenancy agreement should be signed by the property owner or property manager before presenting it to the tenant. Failing to sign the agreement could result in a fine.  

Looking for advice? Ask Quinovic. 

If you have any questions about Tenancy Agreements get in touch with your local Quinovic office. We’re a nationwide team of property management experts and have managed over 135,000 tenancies since 1988. No matter how big or small your question is, we’ll be happy to help. Ask Quinovic today.