Private Lease Agreement Victoria – Essential Steps to Protect Yourself as a Landlord

Protecting your property as a landlord in Victoria starts with a solid leasing process. Follow these essential steps to ensure you screen tenants effectively, secure legal documents, and safeguard your investment.

Before Approving a Tenant

• Conduct Comprehensive Background Checks: Contact all the tenant’s references, including their current employer, previous landlord, and personal contacts. Ensure that you verify contact details and assess the tenant’s rental history.

• Gather Essential Documentation: Request and review original or certified copies of the tenant’s proof of identification, proof of income, proof of residential address, and previous rental evidence (such as a lease agreement or written landlord reference).

When Approving a Tenant

• Finalize the Lease Agreement: Schedule a meeting with your chosen tenant to review and sign a General Tenancy Agreement that clearly outlines all rental terms and conditions.

• Document the Property Condition: Within 7 days of the tenancy start date, complete a detailed property condition report. It is advisable to complete this report together with the tenant in order to minimize potential disputes later. Keep one copy for your records and provide the tenant with two copies.

• Collect and Lodge the Bond: Request a bond equivalent to 4 weeks’ rent. Issue a receipt upon receiving the bond and have the tenant sign a Bond Lodgement Form, which is required for lodging the bond with the relevant authority (RTBA).

During the Tenancy

• Perform Routine Inspections: Conduct regular property inspections up to four times a year. Always give the tenant at least 24 hours’ written notice before an inspection, ensuring visits occur only between 8 AM and 6 PM on non-public holidays.

• Keep Detailed Records: Maintain copies of all correspondence, receipts, and photographs documenting the condition of the property. These records are invaluable in resolving any future disputes.

Additional Recommendations

• Undertake Further Background Checks: Consider utilizing national tenancy databases or TICA blacklist checks to ensure potential tenants have a reliable rental history. It’s also beneficial to review records from criminal court attendance databases and, if necessary, conduct comprehensive police background checks.

• Secure Landlord Insurance: Protect your investment by obtaining robust landlord insurance, which covers theft, malicious damage, or loss of rent if a tenant defaults. Compare various providers to find the best coverage and rates.

• Stay Informed: Review the latest renting guides and factsheets available on Consumer Affairs Victoria’s website for up-to-date information and best practices.