Being a renter isn’t always so straightforward. Between all the paperwork, leases, bonds, and repairs issues, a lot of confusing legal terms get thrown around that make things harder than they need to be. Whether it’s dealing with ‘rental arrears’, working out your lease, or wondering what a ‘moratorium’ is, it isn’t always clear where you stand with your landlord and agent. Knowing the basic legal/tenancy jargon you’re likely to run into can help demystify some of the finer details of renting, so we’ve created this little glossary to help you out!
Glossary
- Arrears: When you’re behind in your payments – whether it’s late rent or a past-due utility bill – you’re in arrears. Rent arrears is rent owed for the days you have lived in a place but haven’t paid for. (See “rent” below)
- Bond/security deposit: This is the extra sum of money you provide to your landlord when you move in or sign the lease. This sum covers any damage you might do to your apartment, or rent you don’t end up paying during the term of your lease. The Residential Tenancies Bond Authority (RTBA) holds this money until you vacate the premises. Upon moving out, you should receive this sum of money back in full unless your landlord decides to charge you for damage or repair to the place beyond normal wear and tear. If there is a dispute over the bond, VCAT can hear it.
- CAV: Consumer Affairs Victoria is Victoria’s consumer regulator that ensures a fair market place for landlords, tenants, businesses, and consumers in general.
- Co-tenant: When two or more people sign the tenancy agreement they are known as co-tenants.
- Eviction: Eviction is the end of the process in which a rental provider asks for VCAT to help them regain possession of a property. VCAT can make a possession order, which entitles the rental provider to purchase a warrant of possession.
- Fixed-term agreement: You have a fixed-term agreement with the landlord when you enter into a lease for a set period (usually 6 or 12 months). During this period, the landlord cannot ask you to leave unless you have breached the agreement.
- Lease/Tenancy/Residential tenancy agreement: Also known as a Tenancy Agreement, a lease is a contract between renters and their rental provider. A contract sets out the rights and obligations of both renters and their rental providers, such as how much the rent is, how long the contract will go for, and the rules everyone has to follow in order for the contract to continue.
- Notice to Vacate: A formal written document given by the rental provider to the renter asking them to leave the property. It will include the reason the rental provider wants the renter to leave, and the number of days the renter has before they are expected to go.
- Periodic tenancy: This is when there is no set period for the tenancy agreement, or if the fixed term of a lease expires and you continue on the lease. A periodic or continuing agreement goes on recurring automatically until something is done by the parties to end it. A tenant can end a periodic lease by giving 28 days’ notice in writing.
- Rent: The cost of letting property. Rent accrues on a daily basis and is usually payable 1 month in advance.
- Renter: Also known as a tenant. The person living in a rented property under agreement with a rental provider.
- Rental Provider: Also known as a landlord. The person, or company, providing a property in return for rent under agreement with a tenant.
- Sub-letting: Where a person whose name is on the lease rents to another person for a lesser period. Legally, a tenant cannot sub-let without the landlord’s prior consent.
- Sub-tenant: Someone who is renting a property, or room within a property, from another renter (who themselves is renting from the landlord). Legally, a tenant cannot sub-let without the landlord’s prior consent.
- Transfer of tenancy: This is when a person whose name is on the residential tenancy agreement signs over their legal rights as a tenant in the house to another person.
In need of more tenants information? Explore our blog for more articles.
In need of legal support? Anika Legal can provide legal assistance if you:
- Need repairs at your home and haven’t yet applied to VCAT
- Have received a Notice to Vacate due to rental arrears
- Need help with a bond dispute after your landlord has applied to VCAT
Fill out our 10-minute questionnaire to see whether you’re eligible.
