Budget
Prepare a budget before you start house-hunting. Your budget should include
costs such as
- removal expenses
- rent in advance (usually one month) plus bond
- utility connection fees (gas, phone, electricity)
- household contents insurance
If you are on a low income, the Office of Housing may loan you the money
for your bond. See the Bond loan scheme leaflet for more information.
Rental property applications
Forms & discrimination
Estate agents often ask tenants to fill out a rental property application
form. These forms may ask tenants to provide personal information. You
are not obliged to answer every question, but failure to do so may result
in your application being unsuccessful. Questions relating to sex, race,
marital status, impairment, sexual preference, or religious or political
beliefs are irrelevant and discriminatory. If you object to any question,
you can lodge a complaint with the Equal Opportunity Commission. If you
want more advice, call their Hotline (% (03) 9281 7111). It is illegal
for landlords or agents to discriminate against tenants with children.
Credit reference checks
Estate agents sometimes conduct credit reference checks on prospective
tenants. This is illegal without your written consent. If you believe
an agent has conducted an illegal credit reference check, you can lodge
a complaint with the Privacy Commissioner. If you want more advice, call
their Hotline (% 1300 363 992).
Tenancy databases
Some estate agents subscribe to tenancy databases. Tenancy databases
are lists of tenants who have been reported by estate agents for owing
money to their former landlords. These databases are legal, but unregulated.
The estate agent must be a subscriber to the database to access it, and
your former agent would have to be a subscriber to put the information
on it.
If your rental property application was unsuccessful, you should ask
the estate agent if they consulted a tenancy database. If so, you should
contact the relevant tenancy database to ensure their details are accurate
and up to date.
Application deposits & illegal charges
Landlords or agents may ask you for an application deposit before they
let you apply for a property. If your application is successful and you
enter into a tenancy agreement, you can arrange for the application deposit
to be put towards your bond or first month's rent. If your application
is unsuccessful, the application deposit must be refunded to you on the
next business day after 14 days.
It is illegal for landlords or agents to charge a fee for letting you
inspect a property, or for giving you the keys to the property when you
move in. Nor can they charge you a commission for renting you the property.
See the Complaints about estate agents and landlords leaflet for more
information.
Tenancy agreements
A tenancy agreement (a lease) may be in writing, or it may be verbal.
It may be for a fixed term (usually 6 or 12 months), or it may be periodic
(month to month). Fixed-term agreements are more secure (ie they make
it harder for a landlord to evict you), but it can be expensive if you
need to terminate the lease before the end of the fixed term. Only commit
yourself to a fixed-term agreement if you are sure you want to stay in
the property for the full period of the lease.
We recommend that tenants do not sign any lease which allows for unrestricted
rent increases during the fixed-term agreement. See the Rent increases
leaflet for more information.
You may have entered into a binding tenancy agreement without signing
a lease if
- there was agreement on the terms of the tenancy (such as the amount
of rent and bond)
- you paid all or part of the bond
- you paid all or part of the rent in advance
- you moved in all or some of your possessions
In such a case, the landlord could enforce the lease or claim compensation
if you try to pull out of the tenancy agreement. Be sure you are happy
with the property before you pay any money.
If the landlord offers to repair or improve the property before you move
in (eg install a heater), get the promise in writing or have someone witness
the promise.
Documents & information
At the beginning of a tenancy, your landlord must give you
- a Statement of Rights and Duties
- 2 copies of a Condition Report (assuming you have paid a bond) filled
in and signed by the landlord or their agent
- the landlord or agent's full name, address, and telephone and fax
numbers
- a statement setting out the agent's power to authorise urgent repairs
(if the landlord has an agent), the maximum amount of urgent repairs
they can authorise, and the agent's telephone or fax number for urgent
repairs
The Condition Report is conclusive evidence of the state the property
(both inside and out) when you moved in. At the end of the tenancy it
will help determine if there are damage or cleaning costs for which you
are liable. Make a note of any problems (such as carpet stains) on both
copies of the report. If there is not enough room on the report, write
'see attached' in the appropriate section and attach a separate sheet.
When complete, sign and return one copy to the landlord (or their agent).
If there is a lease, you should be given a copy before you sign it.
If necessary, seek advice before you sign a lease, especially if there
are 'additional terms' attached. You must be given a copy of the lease
within 14 days of signing.
Rent & bonds
If your rent is less than $350 per week, you can be asked for a maximum
of 1 month's rent in advance, and a maximum of 1 month's rent as bond.
If your rent is paid weekly, you can only be asked to pay 2 weeks rent
in advance.
You cannot be asked for both a bond and a guarantee. If you are asked
to provide a guarantee instead of a bond, the guarantee cannot be for
an amount greater than the bond would have been.
If you pay your rent or bond in person, you must be given a receipt immediately.
If you send the money and request a receipt, you must be given one within
5 days. Even if you don't request a receipt, you can request one within
12 months from the date of payment. See the Bonds leaflet for more information.
If your rent is over $350 per week, there are no maximum bond or rent-in-advance
limits. If the lease states that the premises are the landlord's principal
place of residence and that they intend to move back in when the lease
is up, there is no maximum bond limit.
For more information, contact the Tenants Union on % (03) 9416 2577.
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