Last Updated March 28, 2024
What is a Tenancy Agreement?
A Tenancy Agreement is a legal contract that defines the terms and obligations between a landlord and the tenant(s) letting a residential property from them. Tenancy agreements are commonly used when signing up a new tenant for a flat, but they can also be used for letting out rooms, house shares, or mobile homes.
The length of a Tenancy Agreement may be based on a fixed period that ends on a specific date, or it may run on a repeating cycle such as weekly or monthly.
A Tenancy Agreement is also known as:
- Lease Agreement
- Residential Tenancy Agreement
- Tenancy Agreement Form
- Residential Lease Agreement
Why do I need a Tenancy Agreement?
A Tenancy Agreement sets out the expectations and requirements of the landlord and tenant so that each of them clearly understands the conditions of the tenancy. For example, having a formal tenancy agreement lets the tenant know what is permitted in the living space, including rules regarding the following items:
- Whether pets are allowed, what types of pets, and expectations for pet behaviour
- If tenants are permitted to smoke; either in their flat, on a balcony, or outside the building
- Whether guests can visit or stay overnight
- When "quiet hours" are to be kept
- Scheduled use of onsite laundry machines
At the same time, the Tenancy Agreement can also be used to outline the following responsibilities for the landlord:
- Keep the building and grounds in decent condition and safe from hazards
- Provide timely repairs of vital systems like plumbing and electrical
- Give reasonable notice before entering the tenant's living space
- Ensure that proper fire safety items like smoke detectors and extinguishers are provided and functional
A Tenancy Agreement typically contains the following items:
- Names and contact information for the tenant and landlord/property manager
- The length of the tenancy agreement; either a fixed period or a recurring time interval
- The amount of the rent payment, and when it must be submitted
- Rights and responsibilities of both the tenant and landlord
- Additional options such as parking, or items included with the rent (utilities, internet, etc.)
- Any security deposits which must be paid before moving into the living space
A Tenancy Agreement can also contain an option for the tenant to purchase the rental property at the end of the lease period.
When should I create a Tenancy Agreement?
You should create a Tenancy Agreement anytime you let a living space to a tenant. This could be a room or set of rooms in your home, or it could be a flat in a building you own and/or manage.
You can also use a Tenancy Agreement if you own a vacation property and decide to let it out for people to use while they are on holiday.