Starting a tenancy
This factsheet was updated on 20 November 2024 to reflect the recent changes to tenancy laws.
As a tenant you have rights under the Residential Tenancies Act 2010 and Residential Tenancies Regulation 2019. This factsheet outlines the law in NSW about starting a tenancy – including the form of the residential tenancies agreement, what information you can expect the landlord or agent to provide, what costs you can be asked to pay, and the rules about the condition report.
A residential tenancy agreement is a contract. It sets out the tenant’s and landlord’s rights and obligations. It is also commonly known as a lease.
Tenancy agreements are usually in written form. They can also be oral (e.g. a conversation with the landlord), or partly written – partly oral. All agreements must follow the Residential Tenancies Act 2010 (‘the Act’).
A landlord should provide the tenancy agreement in writing. If not, then during the first 6 months of the tenancy, they cannot increase the rent and cannot end the tenancy without a legally specified reason.
There are two types of agreement:
- fixed term – for a specified period (e.g. 12 months)
- periodic – ongoing, no fixed term is specified
At the end of the fixed-term, a residential tenancy agreement automatically becomes periodic (ongoing), unless it is ended by one of the parties.
Additional terms
The landlord may include additional terms in the standard tenancy agreement but they are only valid if:
- both you and the landlord agree to them
- they do not conflict with the Act or any other laws
- they don’t conflict with the terms of the standard residential tenancy agreement
If there is a conflict between additional terms and the Act, other laws or the terms of the standard agreement, the additional terms are invalid.
See also Factsheet 01: Residential Tenancies Act.
Tenancy agreements in share housing
If you rent part of the premises from another tenant, it is in your interest to have a written tenancy agreement with them. See Factsheet 15: Share Housing and Factsheet 18: Transfer and sub‑letting.
Before signing a tenancy agreement
A landlord/agent must state a fixed amount of rent in the advertisement or offer for the rental property. Any attempt to solicit a higher amount than the advertised amount is prohibited.
If a landlord decides to enter into a tenancy agreement with you, they (or their agent) must not knowingly hide any of these ‘material facts’ from you:
- the premises have been subject to serious flooding or bushfire in the last 5 years
- the premises have significant health/safety risks that are not apparent on inspection
- the premises have been the scene of a serious violent crime in the last 5 years
- council waste services will be different from others in the council area
- you cannot get a free residential parking permit (in an area where only paid parking is available)
- the premises have a driveway or walkway that others can legally use
- the premises was the scene of a drug offence under the Drug Misuse and Trafficking Act 1985 in the last 2 years
- the premises is listed on the Loose-fill Asbestos Insulation (LFAI) Register maintained under the Home Building Act 1989
- if you are renting in a strata scheme – any scheduled repairs to common property during your fixed term
If your rented home is in a building where the building’s external combustible cladding needs rectification, the landlord/agent must tell you if any of the following have been issued:
- fire safety order / notice of intention to issue a fire safety order
- a building rectification order or notice of intention to issue a building rectification order
- a development application or complying development certificate application for rectification of the building
The landlord (or their agent, if the agent is aware) must also tell you if either of the following apply:
- they propose to sell the premises (if they have prepared a contract for sale of the premises)
- a mortgagee has started court proceedings to enforce a mortgage over the premises
You may be able to terminate your tenancy if your landlord fails to disclose any of these material facts to you. See also Factsheet 09: You want to leave, Factsheet 21: Mortgagee repossession, Factsheet 24: Mould, and Factsheet 26: Asbestos and lead.
Landlord’s information statement
A landlord must sign an acknowledgment on the tenancy agreement that they have read and understood the contents of the NSW Fair Trading landlord information statement which sets out the landlord’s rights and obligations under the law.
Real estate agents signing this acknowledgement must first obtain a written statement from the landlord that the landlord has read and understood their rights and obligations as set out in the information statement.
Social housing providers (including Homes NSW, community housing providers and the Aboriginal Housing Office) are exempt from signing this acknowledgment.
On signing a tenancy agreement
The landlord/agent must give you a NSW Fair Trading tenant information statement. If you are renting in a strata scheme, they must give you a copy of the strata by-laws within 7 days, and inform you if a strata renewal committee is currently established for the scheme.
Landlord’s/agent’s contact details
Before or when you sign the tenancy agreement, the landlord/agent must give you these contact details in writing (or include them in the tenancy agreement):
- the name, phone number and business address of the landlord’s agent (if any) and the name and phone number or other contact details of the landlord, or
- (if there is no agent) the business or residential address and phone number of the landlord, or
- (if the landlord is a corporation) the name and business address of the corporation.
A landlord/agent can only ask applicants to pay:
- a holding fee
- rent in advance
- a bond
Get a detailed written receipt for any payments you make.
A landlord/agent cannot ask you to pay for:
- a background check
- preparing a written residential tenancy agreement
Holding fees
A landlord/agent may ask you to pay a holding fee on approval of your application for a tenancy. The most they can ask for is one week’s rent.
The landlord/agent can hold only one fee at a time. On receiving a holding fee, they can’t enter into an agreement with another prospective tenant for 7 days (or longer, if you both agree).
Upon signing the tenancy agreement, the fee goes toward the rent from the first day of your tenancy.
The landlord/agent must refund the fee if:
- they decline to enter into the tenancy agreement, or
- you refuse to enter into the tenancy agreement because the landlord/agent made any false or misleading statement, or they failed to tell you any ‘material facts’ (listed above).
If you otherwise decide not to enter into the tenancy agreement, the landlord/agent can keep the fee.
Rent in advance
The landlord/agent or the tenancy agreement cannot require you to pay more than 2 weeks rent in advance (you may choose to pay more). They cannot demand further rent until it falls due and cannot ask for a post-dated cheque.
Bond
The bond is money you pay at the start as security in case you don’t follow the terms of the tenancy agreement.
- The bond must not be more than an amount of 4 weeks rent.
- The landlord/agent must deposit the bond with NSW Fair Trading.
- The landlord/agent must give you the option of using the voluntary NSW Fair Trading Rental Bonds Online, however they cannot require you to use this system.
- The bond must only be in the form of money.
- The landlord/agent must take only one bond for a tenancy agreement.
- The landlord/agent must not require that you pay a bond to them before you sign a tenancy agreement.
See Factsheet 03: Bond for more information.
Financial help
The Rentstart Bond Loan scheme helps disadvantaged tenants in the private rental market with money for bond and rent in advance – apply online through Homes NSW. See also Resource: Financial assistance for renters.
The landlord/agent must fill in a condition report and provide this to you when you move in. The report describes the condition of the premises. The landlord/agent must give you 2 copies – one for you to keep and one for you to return to them. You must complete your condition report and return one copy to the landlord or agent within 7 days of moving in.
If the landlord/agent does not give you a condition report, write a detailed report on the condition of the premises yourself, include photos, and have a witness sign and date it.
Completing the report
Inspect the premises and complete the report carefully. The report will be used as evidence if the landlord/agent disputes the return of your bond at the end of the tenancy. It is also a good idea to take photographs at the start (and the end) of the tenancy, and store them in a safe place.
If the landlord/agent tells you they will do cleaning, repairs, additions or other work, write details in the section ‘Landlord’s promise to undertake work’.
The landlord/agent must give each tenant named in the tenancy agreement a free copy of the keys (or other opening devices) for the premises and for common property that the tenants are entitled to access.
If there is a dispute, it is a good idea to try to negotiate – see Tips: Negotiating with the landlord. If you are unable to reach agreement, get advice from your local Tenants’ Advice Service about applying to the NSW Civil and Administrative Tribunal (NCAT) or making a complaint to NSW Fair Trading.
You can apply to the Tribunal for order/s that:
- the landlord prepares and enters into a written tenancy agreement
- a term of the tenancy agreement is invalid because it is inconsistent with the law
- a holding fee is refunded to you (whether or not you enter into a tenancy agreement)
- the condition report is amended
You can complain to NSW Fair Trading if a landlord/agent, for example:
- charges extra fees (other than holding fee, rent in advance and bond) before you enter into an agreement, and specifically if they charge you for a background check or for preparing a written agreement
- withholds any ‘material facts’, proposed sale or mortgagee action, or makes any false/misleading statement before you enter into an agreement
- includes prohibited terms in the tenancy agreement (see Factsheet 01: Residential Tenancies Act).
- asks for a bond of more than 4 weeks rent
Factsheet updated 20 November 2024
This factsheet is intended as a guide to the law and should not be used as a substitute for legal advice. It applies to people who live in, or are affected by, the law as it applies in New South Wales, Australia.
© Tenants’ Union of NSW.