If you're planning to rent out your property, one of the most important tasks you’ll face is creating a lease. A lease agreement is a legally binding document that outlines the terms and conditions of the rental. It protects both you and your tenant and helps avoid disputes during the tenancy. Whether you're working with tenants directly or listing your property through For Sale By Home Owner, having a clear, well-structured lease is critical to managing your rental effectively.

Let’s walk through the essential steps involved in creating a lease, especially for landlords handling their own rental property marketing.

Step 1: Gather the Key Information

Before you start drafting, collect all the necessary information to include in the lease. This will ensure the document is complete and accurate. You’ll need:

Full legal names of all tenants The rental property address Start and end dates of the lease term Weekly or monthly rent amount The bond amount (as per local legislation) Due date for rent payments Accepted payment methods Any included utilities or services

Having all these details ready will make the process smoother and more efficient.

Step 2: Set the Lease Term and Conditions

One of the most crucial elements when creating a lease is defining the lease term. Decide whether you want a fixed-term lease (e.g., 6 or 12 months) or a periodic agreement that continues month-to-month.

Be clear about:

Notice periods for ending the lease Whether the lease can be renewed Rules around breaking the lease early Penalties for breach of contract

This clarity ensures both parties understand their rights and obligations.

Step 3: Include Responsibilities and Restrictions

A good lease agreement clearly outlines responsibilities—this avoids confusion and keeps your property in good shape. Specify:

Who maintains the garden or lawn Who pays for water, gas, and electricity Whether pets are allowed (and under what conditions) Rules about smoking on the premises Limits on alterations or changes to the property

These clauses set expectations and help maintain order during the tenancy.

Step 4: Comply With Legal Requirements

Each Australian state or territory has its own residential tenancy laws. When creating a lease, ensure it complies with local regulations. This may include:

Maximum bond amounts Rent increase notice periods Entry notice requirements Lodgement of the bond with the correct authority

Platforms like For Sale By Home Owner offer resources and templates that align with current legislation, helping landlords avoid costly mistakes.

Step 5: Attach Relevant Documents and Disclosures

A complete lease includes more than just terms and conditions. You may also need to attach:

A condition report (outlining the property's state at move-in) Copies of keys provided Information about emergency contacts or repairs Disclosure of any planned renovations or issues Smoke alarm and safety compliance documents

Providing these documents builds trust and demonstrates professionalism as a landlord.

Step 6: Review and Finalise the Agreement

Once you've drafted the lease, review it carefully to check for errors or missing details. It's often a good idea to use a lease template from a reliable source, such as For Sale By Home Owner, which offers forms tailored for private landlords in Australia.

Ensure both you and your tenant read and understand the terms. Don’t rush this step—give the tenant time to ask questions and seek advice if needed.

Step 7: Sign and Store the Lease Agreement

After both parties agree to the terms, sign and date the lease agreement. Each party should receive a copy for their records. Store your version securely, whether as a hard copy or digital file.

It’s also a good practice to document any payments made at this stage, such as bond and initial rent, along with receipts.

Final Thoughts

Creating a lease is more than just filling out a form—it’s a vital step in protecting your property and ensuring a smooth tenancy. By following these essential steps, you can create a clear, fair, and legally sound agreement that benefits both you and your tenant.

If you’re managing your own rental property marketing, platforms like For Sale By Home Owner provide the tools and templates you need to confidently create a lease and manage your rental without relying on an agent. A strong lease is the foundation of a successful rental experience—make sure you get it right from the start.