How to Prepare a Private Rental Agreement.

If you’re ready to rent out your property privately, you’ve got a very exciting time ahead! You’ve done the prep, you’ve found a tenant, and best of all—you’re going to save a stack of cash by doing it all yourself.

Before the lease properly commences, though, there’s a few things to do—one of which is drawing up your private rental agreement.

The task may sound involved and daunting, but we’ll illuminate the process for you in this blog.

It’s as easy as following a recipe!

1. Grab a template that’s relevant to your state.

All private rental agreements need to adhere to specific legal requirements set out by your state government, so in most cases, they won’t vary from the one an agent uses. Once you’ve looked at an example contract, you’ll have a good idea of how yours will look.

However, they do vary slightly between states and territories, so a quick Google search will find a template that’s right for you. Or check the state-by-state guides in the footer of this page to get the skinny on renting privately in your neck of the woods. Alternatively, you can use a provider like PropertyNow to create a compliant lease agreement which you and the tenant can both sign online.

2. Know what you DO and DON’T need to include in the contract.

It’s natural to feel overwhelmed when writing up a contract for a tenancy. After all, you’ve got your property’s best interests at heart! You want to protect it from potential damage and mistreatment throughout the tenancy.

Luckily, a rental agreement automatically includes some things, so you won’t need to lay them out in black and white.

Read on to learn about the difference between express and implied terms and what they mean for your private rental agreement.

What you DON’T need to include in your private rental agreement.

When it comes to renting out your property, some things just don’t need to be said. These are known as implied terms and include:

• You (as the landlord) will see to basic repairs as needed.
• The tenant is obligated to provide access for repair work.
• The tenant will be respectful to the property and use appliances and fixtures appropriately.
• The tenant won’t be bothered by the landlord unnecessarily.

Don’t include any of these items in your agreement, as Australian tenancy laws will still cover you if the occupant makes any breaches throughout the lease.

What you DO need to include in your private rental agreement.

Here’s what you will need to include in your contract:

• The agreed price of rent and the method in which it’s to be paid.
• How and when you’ll increase rent.
• The length of the lease.
• The bond amount and how it will be stored.
  Any special agreements that you’ve made with the tenant (if pets are allowed inside, for example).

Click here for a complete list of express terms that could be included in your contract if you live in Victoria. Remember, available terms differ around Australia, so be sure to check the requirements in your state.

3. Decide what kind of lease you want – fixed or periodic.

The type of private rental agreement you choose depends on what you plan to do with your property. Here’s our quick guide to each:

• Fixed-term tenancies last for a set time (such as a year), after which you and your tenant can agree to an additional fixed-term agreement. If you don’t, the agreement usually continues as a periodic one until it is properly ended. Rent increases are governed separately, and by your state or territory rather than by the agreement: in most of Australia rent can now be raised no more than once every 12 months, and the notice you must give differs by jurisdiction, so check the rules where your property is before you commit to anything. These kinds of rental agreements are great for assuring a guaranteed income. However, if your circumstances change, the downside is that ending a fixed term early generally needs your renter’s agreement, or a ground set out in your state’s tenancy laws (such as the tenant breaking the agreement by not paying rent or damaging your property).
• A periodic tenancy has no fixed end date. It simply continues, which is why it is often called a month-to-month or continuing agreement, until either you or your tenant brings it to an end properly. Ending one is not a matter of deciding to: the grounds you can rely on and the notice you must give vary materially between states and territories, and several now require a landlord to give a prescribed reason rather than no reason at all. In New South Wales that has been the case since 19 May 2025, and in South Australia since 1 July 2024. Check your state or territory’s tenancy authority before you plan around it. A periodic agreement is still the more flexible of the two, which can suit you if you think you might want to renovate the property, move in, or sell up.

TLDR: In short, periodic tenancies are the more flexible of the two because they have no fixed end date, though ending one still depends on the grounds and notice your state or territory requires, while fixed-term tenancies can give you more financial security over the term of the agreement so that you can set a firm budget.

4. Review & sign your private rental agreement.

A private rental agreement is a legally binding document, and you should treat it as such. Be sure it not only reads professionally but presents well too. We’re talking about spelling, grammar, and formatting here.

When reviewing something you’ve written, it’s always best to leave it a day or two and come back to it with a fresh set of eyes. Even better, get someone else to read over the document and check for obvious mistakes in your spelling and grammar.

Finally, read over the content one final time to be sure you’ve included all the express terms you need. Your rental agreement automatically covers implied terms of tenancy, but any express terms left out won’t be covered. Make sure you’ve included everything you want, and you’re all done!

Sign & date the rental agreement yourself before sending it off to your new tenant. Be sure to let them know they can ask you any questions before signing. They’ll need to return their signed copy to you before you hand over the keys.

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By following this guide, you’ll have the knowledge and resources you need to prepare your private rental agreement. Remember, you can always consult a solicitor to check what you’ve drawn up if you want that extra peace of mind.

Once both you and your new tenant have signed the agreement, you’re all set! For more information, read our guide on renting out your property.

Want to rent out your property yourself?

PropertyNow can help. We’re experienced in helping homeowners rent out their properties privately with confidence. You get access to our team of experts, and your property will get the exposure it deserves with listings on all the major property sites. Sign up today to try before you buy!

Disclaimer: This article is general information only and is intended as educational material. PropertyNow nor its associated or related entities, directors, officers, or employees intend this material to be taken as advice either actual or implied. You shouldn’t act on any of the above without seeking qualified advice, which takes your individual circumstances into account.