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 creates 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 under the revised RTA from February 2021. 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.
- The full name and contact details including a mobile phone number and email address (if you have one) of the property owner or property management company and tenant. The contact address of the tenant (where that is different from the address of the premises to which the agreement relates) should also be included. 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.
- The address of the rental property.
- The date when the Tenancy Agreement is signed.
- The date when the tenancy will start.
- An address for both the tenant and the property owner and/ or the property management company.
- Confirmation of the tenant’s age - if they are under 18 years old.
- The amount of the rent payable, the frequency and due date.
- The bank details for the rental deposits.
- A list of all the furniture, curtains, and other fittings (chattels) that the property owner has provided.
- The date that the tenancy will end if the property owner and tenant have agreed on a fixed term.
- An insulation statement and Healthy Homes Standards statement provided by the property owner to confirm that there is insulation in the property including the insulation level, type, and condition in the walls, floor, and ceiling in compliance with the Healthy Homes Standards.
- 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.
- From 1 December 2020, a separate, signed statement with details of the property’s current level of compliance according to Healthy Homes Standards.
- Healthy Homes Standards and insulation statements must also be included in any variation or renewal of any existing tenancy agreement.
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 125,000 tenancies since 1988. No matter how big or small your question is, we’ll be happy to help. Ask Quinovic today.
