Australian Rental Glossary: Key Terms Explained

Navigating the Australian rental market becomes much easier when you’re familiar with the terms commonly used in rental agreements and property management. Here’s a glossary of essential rental terms to assist you:

Bond

A security deposit paid by the tenant and held by the state’s tenancy authority. It covers any damages or unpaid rent at the end of the lease. Typically, it’s equal to 4 weeks’ rent.

Condition Report

A document completed at the start of the tenancy that records the property’s condition. It’s used as a reference when you move out to determine if any damages have occurred.

Fixed-Term Lease

A rental agreement with a set duration, usually 6 or 12 months. Breaking a fixed-term lease early may result in penalties.

Periodic Lease

A rental agreement without a fixed end date. It continues on a rolling basis (e.g., month-to-month) until terminated by the tenant or landlord with proper notice.

Rent in Advance

Payment of rent before it is due. In most states, landlords can request up to 2 weeks’ rent in advance for weekly tenancies or 1 month’s rent for monthly tenancies.

Notice to Vacate

A written notice from the landlord or tenant indicating their intention to end the tenancy. Notice periods vary depending on the reason and the state.

Entry Notice

A formal notice given by the landlord or property manager before entering the property for inspections, repairs, or other authorized reasons. Notice periods differ by state but are generally at least 48 hours.

Break Lease

Ending a fixed-term lease early. Tenants may be required to pay break lease fees, such as lost rent and advertising costs.

Fair Wear and Tear

Natural deterioration of the property over time due to regular use. Landlords cannot deduct bond money for fair wear and tear.

Subletting

When a tenant rents out part or all of the property to another person. This usually requires the landlord’s written consent.

Tenant Database

A registry of tenants who have had issues during previous tenancies, such as unpaid rent or property damage. Landlords may consult these databases during the application process.

Holding Deposit

A deposit paid by a tenant to secure the property and take it off the market while finalising the lease agreement. It usually goes towards the first rent payment or refunded if the landlord decides not to proceed.

Rent Arrears

Overdue rent that has not been paid by the tenant according to the lease terms. Falling into arrears may lead to termination of the lease.

Tenancy Tribunal

An independent body that resolves disputes between landlords and tenants. Each state and territory has its own tribunal, such as the NSW Civil and Administrative Tribunal (NCAT).

Rental Yield

The return on investment for a rental property, calculated as a percentage of the annual rental income divided by the property’s purchase price.

Inspection Report

A report completed during routine property inspections. It documents the condition of the property and any maintenance issues that need addressing.

No Pets Clause

A clause in a lease agreement prohibiting tenants from keeping pets on the property. In some states, landlords must provide a valid reason for denying pets.

Utilities

Services such as electricity, gas, water, and internet. Rental agreements specify whether utilities are included in the rent or paid separately by the tenant.

Wear and Tear vs. Damage

• Wear and Tear: Normal deterioration (e.g., faded paint, worn carpets).

• Damage: Issues caused by neglect or misuse (e.g., holes in walls, broken windows).

Understanding these rental terms will help you navigate the rental process with confidence. Always review your lease agreement carefully and clarify any terms you don’t understand before signing.