Starting a tenancy
Find out about types of leases, rent, bills, condition reports and pets when renting in the ACT.
A residential tenancy agreement is also known as a lease. It is a legal contract between a tenant and lessor (the landlord). Both tenants and landlords need to understand what they are agreeing to when they sign a tenancy agreement. Once the agreement is signed, there is no cooling-off period.
A co-tenancy is where there is more than one tenant listed on the tenancy agreement. Each tenant is a co-tenant. All co-tenants have the same rights and responsibilities under the agreement.
A tenancy agreement will include:
- the name of each tenant and landlord
- the name of the agent, if the landlord has an agent
- addresses for both the landlord and tenants, this is the address where landlords and tenants can send legal notices about the tenancy
- the date the tenancy agreement starts
- the amount of rent and how it is paid
- the amount of bond
- the standard terms
- any special terms.
If the tenancy agreement is a fixed-term agreement, it will also include how long the fixed period will be. For example, it may be fixed for 12 months. Once the fixed period ends, the tenancy will continue and become a periodic tenancy agreement.
Standard terms
There are standard residential tenancy terms which apply to all tenancies in the ACT. A full list of standard residential tenancy terms is in the Residential Tenancies Act 1997.
A term that is inconsistent with the standard terms can only be included in a tenancy agreement if its inclusion is approved by the ACT Civil and Administrative Tribunal (ACAT). If ACAT does not approve the term, it will not be legally enforceable.
Owners' corporation requirements
If the rental property is a unit, tenants must also comply with the owners’ corporation rules. These rules function like a law of the ACT. Owners’ corporation rules apply to all residents, including tenants.
Landlords must give tenants a unit title rental certificate before they sign a tenancy agreement. The unit title rental certificate includes a copy of the owners' corporation rules.
Types of tenancies
There are 2 types of tenancies:
- fixed-term
- periodic (month to month).
There are different rights and responsibilities for landlords and tenants depending on whether the tenancy is for a fixed term or is periodic. In particular there are differences around when the tenancy can be ended.
A fixed-term tenancy has a fixed period. During the period of the fixed term there are less options for both the tenant and the landlord to end the tenancy agreement.
A periodic tenancy can continue indefinitely until either the tenant or the landlord ends it.
When a fixed-term tenancy ends, the tenant can stay in the property without signing another agreement. The tenancy simply changes to periodic. Landlords are not allowed to end a tenancy simply because the fixed term has ended. They also cannot force a tenant to sign a new fixed-term tenancy agreement.
Read more about ending a tenancy.
Information tenants must be given before the tenancy begins
Before signing a tenancy agreement, the landlord, or their agent, must give the tenant:
- a copy of the tenancy agreement, including the standard residential tenancy terms
- a copy of the Renting Book [PDF 1.5 MB], or details about how to find it online
- a copy of the Energy Efficiency Rating (EER) statement for the rental property, if there is one
- an asbestos assessment report of the property, or an asbestos advice for the property
- a statement about whether the rental property complies with the minimum standard for ceiling insulation
- safety information for any regulated swimming pool at the property
- if the property is a unit, a unit title rental certificate.
This information helps the tenant understand more about the rental property and the terms of the tenancy agreement. Tenants must be given a reasonable period of time to consider the information before they sign a tenancy agreement.
Unit title rental certificates
A unit or townhouse owner who wants to rent their property needs a unit title rental certificate. They can request one from their owners' corporation. The certificate has important information about the unit complex.
The landlord needs to give a tenant the unit title rental certificate before they sign a tenancy agreement.
Read more about unit title rental certificates.
Signing a tenancy agreement and moving in
Once the tenant and landlord are ready to enter a tenancy, both the tenant and the landlord, or their agent, must sign the tenancy agreement.
The tenant must:
- pay the bond
- pay rent, tenants can be asked to pay up to 2 weeks rent in advance.
The landlord, or their agent, must give the tenant:
- a copy of the signed tenancy agreement
- a receipt for the bond and any rent paid in advance
- a set of keys for each tenant on the tenancy agreement
- 2 copies of the condition report.
Recording the condition of the property
A landlord is required to provide the property in a reasonable state at the start of a tenancy. This includes that the property is:
- fit for habitation
- reasonably clean
- in a reasonable state of repair
- reasonably secure.
A condition report is a record of a property's condition at the start of a tenancy. This includes the condition of any goods provided with the property, such as any furniture or white goods.
Condition reports can be used for evidence if there is a dispute about paying for cleaning, fixing damages or bond claims. For this reason, it is very important that both the tenant and the landlord both review and provide any comments on the condition report.
The landlord must give 2 copies of the report to the tenant within 1 day of when the tenant moves into the property. Anything unclean, damaged or not working should be listed in the condition report.
A tenant has 2 weeks from the day they move into the property to check the report, make comments, and send a signed copy back to the landlord. If a tenant does not sign and return a copy of the condition report within 2 weeks, then they are taken to have agreed with the report prepared by the landlord or agent.
Once a tenant has completed and returned the condition report, they keep one copy and the landlord keeps the other.
Consecutive tenancy agreements
When signing a consecutive agreement, the same condition report from a previous tenancy agreement can be used.
Tenants and landlords can also choose to:
- complete a final inspection for the agreement that is ending
- complete new condition report for the agreement that is starting.
For the tenancy to be consecutive, at least one tenant from a previous agreement must be on the new agreement.
Examples of consecutive tenancies include:
- when a fixed period ends, and the landlord and tenants agree to enter a new fixed-term agreement for the property
- when a co-tenants change and the new co-tenants and landlord sign a new agreement.
Paying bond
A bond is a one-off payment that landlords can request at the start of a tenancy agreement. A bond acts as security in the case that a tenant does not meet their obligations under the tenancy agreement. If there are no problems with the tenancy, the tenant will get their bond back when they move out.
The bond amount cannot be more than 4 weeks of rent. A bond and rent are separate payments. A bond cannot be used to pay rent. Landlords cannot ask tenants for extra bond money for any reason.
Landlords must give tenants a receipt when they pay the bond.
Read more about rental bonds.
Lodging the bond
The bond for a rental property must be lodged with the ACT Revenue Office. The landlord, or their agent, will usually lodge the bond. Tenants can also lodge the bond if the landlord agrees.
It is an offence for landlords or agents to keep the bond and not lodge it.
Read more about how to lodge a bond.
Help to pay your bond
Tenants on a low-income may be eligible to get an interest-free loan to help pay their bond.
Find out more about rental bond help.
Setting up and paying for utilities and services
Tenants need to pay for all utilities they use, such as electricity, gas and water. They must also pay supply charges for utilities supplied in their name.
Landlords must pay for utilities which are not separately metered. This means there is no meter which can measure how much the tenant has used. A landlord must also pay for the physical installation of utilities and for water supply charges.
Tenants need to arrange to disconnect the utilities when they leave the property.