Why You Need a Private Lease Agreement in NSW

A solid lease agreement is your first line of defence as a landlord. It legally defines the relationship between you and your tenant, clarifies obligations, and minimises disputes. In New South Wales, a written Residential Tenancy Agreement is mandatory under the Residential Tenancies Act 2010. Beyond the standard form, a bespoke private lease lets you address property-specific details—so you can protect your investment and enjoy a trouble-free tenancy.

Pre-Approval: Screen Tenants Thoroughly

Reference and Background Checks

• Contact Multiple Referees: Call current and former landlords, employers, and personal contacts. Ask about payment punctuality, property care, and any lease breaches.

• Utilise Databases: Check the National Tenancy Database and TICA for adverse rental histories. For extra security, consider a police or criminal court attendance check, available through licensed providers.

Verifying Documentation

• Proof of Identity: Sight original photo ID (driver’s licence, passport).

• Income Verification: Request recent payslips or bank statements to confirm stable earnings that cover rent plus living expenses.

• Address Confirmation: Ask for a recent utility bill or council rates notice matching the tenant’s claimed residence.

Formalising the Tenancy

Signing the Residential Tenancy Agreement

1. Review the Standard Form: Download the official NSW tenancy agreement from Fair Trading NSW.

2. Custom Clauses: Add property-specific clauses (e.g., garden maintenance, pet conditions) as long as they don’t conflict with the Act.

3. Execution and Copies: Both parties sign two originals. Provide the tenant with one copy of the signed lease plus the NSW Tenant Information Statement within 14 days of signing.

Issuing a New Tenant Checklist

Give incoming tenants a brief “Getting Started” guide covering: rent payment methods, emergency contact numbers, appliance operation, refuse collection days, and smoke alarm maintenance responsibilities.

Completing the Property Condition Report

• Timing: Conduct and document the inspection within 7 days of occupancy.

• Joint Walkthrough: Review the report with the tenant, noting every scratch, stain, and appliance condition.

• Distribution: Keep one signed copy and hand two copies to the tenant—this record is critical if bond disputes arise.

Bond Collection and Lodgement

• Amount: Collect a maximum bond of four weeks’ rent (unless higher rent entitles you to a larger bond).

• Receipt & Form: Issue a printed receipt and have the tenant complete a Bond Lodgement Form.

• Lodgement Deadline: Lodge the bond with Service NSW within 10 business days—online via Rental Bonds Online or in person at a Service NSW centre.

Managing the Tenancy

Routine Property Inspections

• Frequency: No more than four inspections per 12 months.

• Notice Requirements: Provide written notice at least 7 days but no more than 14 days before each inspection.

• Inspection Window: Conduct visits between 8 AM and 6 PM on weekdays, or on Saturdays (excluding public holidays).

Record-Keeping and Communication Logs

Maintain a dedicated tenancy file with:

• Copies of all correspondence (emails, letters, SMS).

• Inspection reports and photos.

• Repair invoices and receipts.

• Notes on tenant requests and landlord responses. Detailed documentation protects you in tribunals and fosters clear communication.

Additional Safeguards for Landlords

Advanced Screening Options

• Credit Checks: A credit bureau report can reveal defaults, bankruptcies, or court judgements.

• Voluntary References: Ask for a letter from a trusted professional reference or mortgage lender.

Landlord Insurance Essentials

• Building & Contents Cover: Protects against fire, storm damage, and theft.

• Loss of Rent: Compensates you if tenants default.

• Liability Cover: Safeguards you if a tenant or visitor is injured on the property. Compare quotes from multiple insurers (e.g., Terri Scheer, RACQ) to secure competitive premiums.

Staying Educated on Legislation

• Fair Trading NSW Resources: Regularly review Rental Forms, Fact Sheets, and updates to the Residential Tenancies Act.

• Industry Newsletters: Subscribe to landlord associations or property forums to stay informed on case law and regulation changes.

• Professional Workshops: Attend seminars on tenancy law, property management software, and dispute resolution.

Final Checklist for NSW Landlords

• [ ] Tenant screening: ID, income, rental history, database checks

• [ ] Signed Residential Tenancy Agreement + Tenant Information Statement

• [ ] Property Condition Report (3 copies) within 7 days of move-in

• [ ] Bond collected and lodged with Service NSW in 10 days

• [ ] Inspections scheduled (max four per year) with proper notice

• [ ] Comprehensive records maintained throughout tenancy

• [ ] Landlord insurance in place

• [ ] Ongoing compliance with NSW tenancy law

By following these steps—backed by a customised private lease—you’ll safeguard your property, foster positive tenant relationships, and minimise legal risks throughout the tenancy.

By following these essential steps, you can create a secure private lease agreement in NSW that protects both you and your property. For more expert advice on renting your home privately, visit salebyhomeowner.com.au