First-Time Landlord? Here’s What You Need to Know

Renting out your property for the first time can feel overwhelming, but understanding the key responsibilities and processes will ensure a smooth and successful tenancy. Whether you're new to property management or looking to refresh your knowledge, this guide will walk you through the fundamentals of renting privately, from lease agreements to tenant selection and legal compliance.

Understanding Lease Types

A lease agreement, or residential tenancy agreement, is a legally binding contract between landlords and tenants that outlines rental terms and conditions. There are two main types of leases:

1. Fixed-Term Lease

Runs for a set period, usually 6 or 12 months.
After expiration, the tenant may renew the lease or continue under an automatic fixed-term tenancy.

2. Periodic Lease (Month-to-Month)

No fixed duration—continues until either party chooses to terminate.
Provides greater flexibility but offers less security for both landlord and tenant.

Ensuring the right lease type for your property helps reduce disputes and keeps rental management streamlined.

Essential Tenancy Agreements & Documentation

Each Australian State has different tenancy laws, which may require landlords to provide specific information before leasing. Most States require:

Tenant information booklet outlining rental rights and responsibilities.
Signed tenancy agreement for legal protection.
Rental bond lodgement receipt to confirm deposit security.
Property condition report completed before move-in.
Receipts for payments, including bond and rent.
Emergency contact details and inspection schedule.
Copy of keys/remotes provided to the tenant.

Failure to comply with state-specific rental laws may result in fines or legal disputes, so understanding your obligations as a landlord is crucial.

Rental Bonds – What You Need to Know

A rental bond is paid at the start of a lease as financial security for the tenancy agreement.

Typically equal to four weeks’ rent.
Refunded at the end of the lease unless terms are violated (e.g., property damage, unpaid rent).
Must be lodged with the respective State Bond Authority.

If deductions are required at lease termination, an official claim must be filed to justify withholding part or all of the bond payment.

All States require that the bond payment is lodged with the State Bond Authority. Lodgement of the bond with the relevant authority is the responsibility of the landlord and usually requires completion of a bond lodgement. For information about bond payments and how to lodge your bond, please visit the links below.

Condition Reports – Protecting Your Property

A Condition Report records the property's state before the lease begins.

Documents existing damage, fixtures, and general wear-and-tear.
Helps resolve disputes over property condition when tenants move out.
Often required for bond lodgement in several States.

Best Practices for Condition Reports:

Take photos of all rooms and fixtures before the tenant moves in.
Provide a copy to the tenant and request confirmation of accuracy.
Retain documentation for reference at lease termination.

A well-documented Condition Report prevents misunderstandings and ensures fair assessments at the end of the tenancy.

Additional Considerations for Private Landlords

1. Residential Tenancies Act Compliance

Each State has specific rental laws, covering:

Landlord obligations, including electrical, water, and fire safety.
Tenant rights, dispute resolution, and eviction processes.
Lease agreements, inspections, and required notices.

Understanding these regulations protects you against legal issues while ensuring a fair tenancy arrangement.

Most consumer affairs sites in Australia provide standard lease agreements for private landlords to use. These forms can be found via the links below.

2. Landlord Insurance

Standard homeowner’s insurance doesn’t cover rental properties, so investing in landlord insurance safeguards against:

Property damage, theft, and natural disasters.
Liability claims from tenant injuries.
Rental income loss due to tenant defaults.

Encouraging tenants to purchase contents insurance ensures their belongings are protected too.

3. Tax Considerations

Rental properties have tax implications, including:

Capital Gains Tax (CGT) when selling.
Depreciation deductions for property wear-and-tear.
Landlord tax benefits, including interest deductions and maintenance costs.

Consulting a qualified accountant helps optimize tax savings while ensuring compliance with financial regulations.

Selling Your Rental Property – Tenant Considerations

Landlords can sell a tenanted property, but the existing lease remains in place. To ensure a smooth sale process, landlords should understand:

Notice periods required before listing the property.
How to inform tenants legally about the sale.
Rules on open inspections while tenants occupy the property.
Photography guidelines for marketing.
Auction preparation while leasing agreements are active.

If needed, landlords and tenants can mutually agree to end the lease early.

To understand your obligations as a landlord, refer to the below links for your specific State-based information:

If you need further information before you advertise your house for rent as a private landlord, government and Consumer Affairs websites in each State have some helpful information on renting for both landlords and tenants. Have a browse via the links below:

Final Thoughts

Renting your property privately provides greater control, cost savings, and flexibility, but requires compliance with rental laws and best practices.

By understanding lease agreements, bond lodgements, property reports, and insurance, landlords can ensure smooth rental management and positive tenant relationships.

If you're ready to rent out your home, salebyhomeowner.com.au provides expert guidance, advertising solutions, and support for independent landlords.