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 Starting a tenancy |
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Author: Tenants Union of VictoriaBudget
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); and
- household contents insurance.
If you are on a low income, the Office of Housing may loan you the money for your bond.
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 (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 and 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.
Tenancy agreements
A tenancy agreement (a lease) may be in writing, or it may be verbal. It may be for a fixed term (usually six 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.
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);
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- you paid all or part of the bond;
- you paid all or part of the rent in advance; or
- 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 and information
At the beginning of a tenancy, your landlord must give you:
- a Statement of Rights and Duties
- two 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; and
- 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 and 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 one month's rent as bond. If your rent is paid weekly, you can only be asked to pay two 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 five days. Even if you don't request a receipt, you can request one within 12 months from the date of payment.
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.
The information in this Fact Sheet is not legal advice. It is intended as a general guide only. It applies only to legislation current in the state of Victoria, Australia. For information regarding a specific tenancy problem, contact the Tenants Union. The Tenants Union accepts no responsibility for actions based on this information, nor for actions based on electronic translations of this information.
October, 2001
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