Drafting Tasmanian Lease Agreements: Rules and Prohibitions

Unlike some Australian states that force landlords to use a single, government-published standard lease form, Tasmania allows for greater flexibility. However, all residential leases, whether written or verbal, are absolutely subordinate to the Residential Tenancy Act 1997 (RTA).

Written vs. Verbal Leases

Under Tasmanian law, a lease agreement does not technically have to be in writing. A verbal agreement to pay rent for residential premises is a legally binding residential tenancy governed by the RTA.

However, operating a rental property on an oral lease is highly discouraged. Without a written agreement, enforcing specific "house rules," claiming bond money for damages, or proving the agreed-upon lease term is extremely difficult should a dispute arise at the Magistrates Court or TASCAT.

Statutory Requirements for Written Leases

If you use a written lease, Section 16 of the RTA mandates that the owner must provide a copy of the signed agreement to the tenant within 14 days of it being signed by both parties.

The agreement must clearly articulate:

• The names and contact details of the owner/agent and the tenant.
• The address of the rented premises.
• The amount of rent to be paid, the frequency of payment, and the specific method of payment.
• The amount of the rental bond (capped at 4 weeks' rent).
• The term of the agreement (the start and end date for a fixed-term lease).

Fixed-Term vs. Non-Fixed Term (Periodic)

1. Fixed-term agreement: The tenant agrees to rent the property for a specified period (e.g., 6 months, 12 months). The landlord cannot end the lease early unless the tenant breaches the agreement.
2. Non-Fixed Term (Periodic) agreement: A lease with a start date but no end date, or a fixed-term lease that has expired but the tenant remains in the property.

Notice to Vacate (Landlord): To end a periodic lease, a landlord must give at least 42 days' notice, but only for specific grounds prescribed in Section 42 of the RTA. These grounds include:

• The owner (or a family member) intends to move into the property.
• The property is to be sold (proof of a contract of sale is typically required).
• The property is to undergo significant renovations that make it unfit for occupation.
• The premises are to be used for a purpose other than as a residence.

Permissible "Special Clauses"

While you cannot contract out of the RTA, Tasmanian landlords are permitted to include custom "Special Clauses," provided they do not conflict with statutory protections.

Common allowable clauses include:

• Pet Policies: In Tasmania, there is no automatic right to keep a pet. Whether pets are allowed is entirely dependent on the lease agreement. Landlords can include a clause prohibiting pets or requiring written consent for each pet.
• Subletting Prohibitions: A clause prohibiting the tenant from subleasing the property or using it for short-term holiday rentals (like Airbnb) without the owner's written consent.
• Smoking Bans: Explicitly restricting smoking or vaping inside the dwelling unit.

Prohibited Special Clauses

A special clause is invalid and legally void if it directly violates the RTA. Including these clauses can lead to penalties. You cannot include a clause that:

• Attempts to charge the tenant a penalty "late fee" or interest for overdue rent.
• Forces the tenant to pay for general maintenance or fair wear and tear.
• Demands a rental bond exceeding four weeks' rent.
• Requires the tenant to waive their right to statutory entry notice periods for inspections.

Executing the Digital Lease

Tracking signatures on paper lease packets and ensuring the tenant receives the mandatory Rental Guide creates an administrative burden. Landager dynamically generates comprehensive, RTA-compliant Tasmanian lease agreements, seamlessly injecting your custom special clauses into a trackable digital signing packet that guarantees state compliance before the tenant ever receives the keys.

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