How to Prepare a Private Rental Agreement in Australia – A Step-by-Step Guide

Renting out your property privately is a smart move—especially when you’ve already found a tenant and want to avoid agent fees. But before the keys change hands, there’s one essential step left: preparing a legally compliant rental agreement.

Here’s how to create a private rental agreement that protects both you and your tenant, while meeting all legal requirements in your state or territory.

 

1. Use a Legally Compliant Template for Your State

• Rental laws vary across Australia, so your agreement must align with your state or territory’s legislation

• Most private rental agreements follow the same format used by real estate agents

💡 Using the correct template ensures your agreement is enforceable and protects your rights as a landlord.

 

2. Know What to Include (and What’s Already Covered by Law)

What You DON’T Need to Include (Implied Terms)

• The landlord must carry out essential repairs

• The tenant must allow access for maintenance

• The tenant must treat the property with care

• The tenant has the right to quiet enjoyment

💡 These terms are automatically enforced under Australian tenancy law—even if not written into the agreement.

What You DO Need to Include (Express Terms)

• Rent amount and payment method

• Frequency and process for rent increases

• Lease duration (fixed or periodic)

• Bond amount and how it will be held

• Any special conditions (e.g. pets, smoking, garden maintenance)

💡 Express terms must be clearly stated—if they’re not in writing, they may not be enforceable.

 

3. Choose Between a Fixed-Term or Periodic Lease

Fixed-Term Lease

• Runs for a set period (e.g. 6 or 12 months)

• Offers financial stability and predictable income

• Converts to a periodic lease if not renewed

• Termination requires mutual agreement or breach of contract

Periodic Lease

• Operates month-to-month

• Offers flexibility for both parties

• Can be ended with written notice (notice periods vary by state)

💡 Fixed-term leases are ideal for long-term stability; periodic leases suit short-term or transitional arrangements.

 

4. Review, Sign, and Store the Agreement

• Proofread the agreement for clarity, accuracy, and formatting

• Ensure all required terms are included and legally compliant

• Sign and date the agreement, then send it to the tenant for review and signature

• Keep a signed copy for your records and provide one to the tenant

💡 A well-drafted agreement avoids disputes and sets clear expectations from day one.

 

Final Thoughts

Preparing a private rental agreement doesn’t have to be complicated. With the right template, clear terms, and legal support when needed, you can confidently manage your rental without an agent.

• Use a state-specific template to ensure compliance

• Include all express terms and understand what’s implied by law

• Choose the lease type that suits your goals

• Review and sign the agreement before handing over the keys

💡 Renting privately? salebyhomeowner.com.au offers expert tools, legal resources, and support to help you manage your rental efficiently—while keeping more of your income.

 

Discover More Expert Insights on Private Property Sales and Rentals
Whether you're selling your home without an agent, managing a private rental, or looking to boost your property's value, our expert resources are here to help. Explore Australia’s leading FSBO guides, landlord checklists, and legal tools—everything you need to navigate your property journey with confidence and clarity.

 

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