Australia – Property Letting

How does the property letting process work in Australia?

There is no single national tenancy law in Australia. Instead, every state and territory has enacted its own residential tenancies legislation — such as the Residential Tenancies Act 2010 in New South Wales or the Residential Tenancies Act 1997 in Victoria. While these frameworks share considerable common ground, landlords must always verify the rules that apply specifically in the state where their property is located. This stands in contrast to countries with centralised national tenancy registers, such as those found in parts of Europe or Asia.

The letting process generally starts with advertising the property. Rent bidding has been outlawed across several states: landlords and agents must advertise at a single fixed price and are prohibited from soliciting offers above that figure or offering properties at a price range or via rent auctions. This is now law in South Australia, Queensland, and New South Wales.

When assessing prospective tenants, landlords may review applications and weigh up suitability, but personal data must be handled with care. Strengthened privacy rules mean owners and agents may only gather information that is genuinely necessary for tenancy purposes. That information must be stored securely, disposed of once it is no longer needed, and you are not permitted to seek unnecessary or intrusive details from applicants.

Australia recognises two principal tenancy types: fixed-term arrangements (most commonly six or twelve months) and periodic tenancies that roll from one payment period to the next. A residential tenancy agreement should include the property address, the duration of the tenancy, rent amount, payment frequency, the bond, and key conditions covering matters such as sub-letting and repair responsibilities. Certain jurisdictions prescribe mandatory standard forms — Western Australia’s Form 1AA is the approved agreement, NSW offers a standard residential tenancy agreement template, and Victoria makes a government-produced sample form available for use as the basis of any agreement.

Every tenancy agreement must incorporate the standard terms set out under the relevant legislation, and those terms cannot be altered or removed. Similarly, any term that the law does not permit cannot be inserted, and any prohibited clause included in an agreement is void. Landlords who include unlawful terms may face financial penalties. Prior to handing over keys, landlords must complete a condition report that thoroughly documents the state of the property at the start of the tenancy. Tenants must be provided with a copy of the condition report. It is vital to complete this document within seven days of the tenant receiving the keys, noting anything that is unclean, damaged, or in need of attention. Photographs are strongly advisable, as the condition report serves as the key piece of evidence should a bond dispute arise at the conclusion of the tenancy.

What types of rental arrangements are available in Australia — long-term, short-term, and holiday lets?

Australia’s rental market encompasses three broad categories: long-term residential letting (ordinarily six to twelve months under a formal tenancy agreement), short-to-medium-term letting (generally under ninety days, sometimes described as mid-term), and short-term rental accommodation (STRA) offered through platforms such as Airbnb or Stayz. Each category operates under a distinct regulatory regime.

Short-term letting is permissible throughout Australia, but the rules governing it are determined by each individual state and territory. There is no national registration framework or night cap. In practical terms, hosts operating via platforms such as Airbnb must satisfy three concurrent layers of obligation: federal tax laws, the registration framework of their particular state, and the planning requirements imposed by their local council.

New South Wales operates a mandatory STRA Register, together with a 180-night cap on unhosted stays within Greater Sydney and a more restrictive 60-day cap in Byron Shire. Victoria has applied a 7.5% Short Stay Levy to stays of under 28 nights from 1 January 2025. Western Australia mandates registration of all STRA properties on a state register and provides a 90-night “no development approval” window for unhosted stays in the Perth metropolitan area before further approval is required. The Australian Capital Territory imposes a 5% STRA levy. Tasmania introduced its own 5% short-stay accommodation levy in 2024, with revenue directed towards first-home buyer support programmes.

In New South Wales, tenancy laws generally do not apply where the rental period is under 90 days. However, landlords alternating between long-term and short-term arrangements must comply with tenancy legislation for leases extending beyond 90 days, and mid-term stays of between three and six months risk attracting tenancy law obligations if the 90-day threshold is crossed.

In NSW, hosts are allocated a unique Property ID (PID) through the NSW Planning Portal, which must appear in every advertisement for the listing. Queensland, South Australia, and the Northern Territory presently rely on local council planning schemes rather than a state-wide registration system, although Queensland is actively considering the introduction of a state registry. Before listing any property on a short-term platform, always verify current requirements with your local council and the relevant state authority.

What rental income can landlords expect in Australia, and how are rates set?

Rental prices across Australia are driven primarily by market supply and demand rather than any strict government-imposed rent control at the national level. Australia lacks the equivalent of Ireland’s rent pressure zone system or the broad rent control mechanisms seen in parts of continental Europe. That said, governments have stepped in to regulate how often landlords may increase rents.

All major jurisdictions now confine rent increases to once every twelve months, covering both fixed-term and periodic tenancies. New South Wales permits an increase once every twelve months provided the landlord gives at least sixty days’ written notice. Victoria similarly limits increases to once every twelve months with at least sixty days’ notice in most circumstances. Queensland allows increases once every twelve months, calculated on a property-by-property rather than tenancy-by-tenancy basis, with at least two months’ notice required. Western Australia permits increases once every twelve months with a minimum of sixty days’ written notice. South Australia and Tasmania both apply a twelve-month restriction with at least sixty days’ notice where there is no written lease or where the lease permits rent increases.

The law now prevents a landlord from raising the rent within twelve months of a previous increase to the property. Crucially, this twelve-month rule applies regardless of whether the most recent increase related to a different tenancy agreement, whether the tenants have changed, or whether the property has changed hands. This is especially relevant to foreign purchasers who acquire a property that already has sitting tenants.

Australia’s rental market is evolving quickly. Major cities including Sydney, Melbourne, and Brisbane are experiencing sustained demand pressure. As housing affordability continues to stretch, a growing proportion of the population is remaining in long-term rentals, which creates favourable conditions for property investors. For current rental yield data and vacancy rate information, consult resources such as the Residential Tenancies Authority (QLD), the NSW Rental Commissioner, or the Real Estate Institute of Australia.

Do landlords need to provide a furnished or unfurnished property in Australia?

Australian law imposes no general obligation on landlords to provide a furnished property for long-term residential tenancies. The overwhelming majority of such rentals are offered unfurnished or semi-furnished — the latter typically meaning that certain white goods such as a refrigerator, washing machine, or oven and stovetop may be included, while items like sofas, beds, and other furniture ordinarily are not. This differs from the short-term and holiday rental market, where full furnishing is the norm and expected by guests.

Where a landlord elects to include furnishings, those items become part of the tenancy agreement, and the landlord assumes responsibility for ensuring they remain safe and in proper working order throughout the tenancy. The condition report completed at commencement should carefully document the state of every included item, providing a clear baseline should any disagreement arise when the tenancy ends.

From a taxation standpoint, furnished properties can generate additional depreciation deductions. Landlords are entitled to claim deductions on qualifying assets including appliances, floor coverings, and structural improvements, with Australian tax law permitting the cost of these items to be written down progressively over time, reducing taxable rental income in the process. Engaging a tax adviser familiar with ATO depreciation rules is worthwhile for maximising available deductions. While whether a property is furnished does not alter its classification under tenancy legislation, it may well influence its appeal in different segments of the rental market. Always consult the ATO’s current depreciation schedule guidance at ato.gov.au.

Do you need a licence or registration to let a property in Australia?

For ordinary long-term residential tenancies, private landlords in Australia are not required to hold a personal landlord licence — unlike a number of European countries that maintain formal landlord registers. Any property owner in Australia is free to let directly to a tenant without obtaining any government-issued permit, as long as they observe the tenancy laws applicable in their state.

There are, however, important distinctions to be aware of. Should you engage a letting agent or property management firm to administer the tenancy on your behalf, that agent is required to hold a valid real estate licence issued in the relevant state. The licensing obligation rests with the agent rather than the private landlord.

For short-term rental accommodation (STRA), registration requirements do apply in a number of states. Every residential property used for short-term letting in New South Wales must be registered with the state, giving authorities comprehensive visibility over active listings and supporting consistent enforcement. As of January 2025, Western Australia requires all short-term rental properties to be entered on its newly established STRA Register. Landlords operating in those states must secure a registration number before advertising or accepting any short-term bookings.

From 30 November 2024 in South Australia, operating a designated rooming house without being registered became unlawful. Foreign landlords are subject to the same state-level registration requirements as domestic owners; however, they face additional obligations at the federal tax level (covered in the tax section below). Before letting your property, always confirm the current requirements with the fair trading or consumer affairs authority in your state.

How do you obtain a landlord licence or register as a landlord in Australia?

Private landlords letting residential property on a long-term basis do not apply for a landlord licence. Instead, the process of becoming a compliant landlord involves working through the steps below to satisfy the tenancy law requirements of your state. STRA hosts will need to complete the additional step of registering with the appropriate state portal.

1. Confirm you are eligible to own and let the property. Australian citizens, permanent residents, and certain visa holders may let property without restriction. Foreign nationals who are non-residents are subject to the Foreign Investment Review Board (FIRB) rules governing property acquisition. Verify your eligibility before taking any further steps.
2. Prepare the property to satisfy minimum housing standards. Minimum Housing Standards have applied to all Queensland tenancies from 1 September 2024, with comparable standards in force across other states. The property must be structurally sound, weatherproof, and compliant with safety requirements including working smoke alarms and safe electrical installations.
3. Obtain the standard tenancy agreement for your state. NSW Fair Trading provides a standard tenancy agreement as a downloadable, fillable PDF. Landlords and tenants should use this prescribed form. Equivalent documents are available through the fair trading or consumer affairs office in every other jurisdiction.
4. Advertise at a fixed rental price. Rent bidding is prohibited under state law. Set a fixed weekly or monthly rent and refrain from inviting offers above that figure.
5. Screen tenants and execute the agreement. You may request references and proof of income, but must observe privacy rules governing what data you may collect and how long you are entitled to retain it.
6. Complete and sign a condition report. Record the state of the property in detail before the tenant takes possession. Both the landlord and tenant should sign the condition report to acknowledge its contents.
7. Collect and lodge the rental bond. Collect the bond from the tenant and lodge it with the relevant state authority — such as NSW Fair Trading’s Rental Bonds Online or Queensland’s Residential Tenancies Authority — within the legally required timeframe.
8. If operating STRA, register with the relevant state portal. In NSW, complete registration via the NSW Planning Portal to receive your Property ID (PID). In Western Australia, register with the state STRA Register. Confirm current fees and procedures directly with the relevant state authority, as these are subject to change.

Processing times and any applicable registration fees differ across states and depend on the type of property. As of 2025, private landlords letting long-term residential properties are generally not subject to a registration fee in most states. STRA registration fees and procedures should be confirmed with the relevant state authority before proceeding, as they change regularly.

What are the rules around deposits in Australia?

In Australia, the security deposit collected at the start of a tenancy is known as a rental bond. Rather than being held by landlords themselves, bonds must be lodged with an official state government body under a mandatory third-party protection scheme — a system conceptually similar to the tenancy deposit protection arrangements found in the United Kingdom and Ireland, though here administered by government rather than private operators. Landlords are not permitted to retain bond funds.

In most cases upon signing the agreement, tenants will be asked to pay two weeks’ rent in advance along with a bond. The bond amount is limited to a maximum of four weeks’ rent. The bond functions as a security deposit: should the tenant violate the terms of the lease or leave the property in a condition beyond fair wear and tear, the landlord may make a claim against some or all of it. In New South Wales, the bond is held in trust by NSW Fair Trading.

Bond caps vary marginally between states and may depend on the level of weekly rent. In South Australia (as of 2025), where weekly rent does not exceed $800, the maximum bond equals four weeks’ rent; where weekly rent exceeds $800, the maximum rises to six weeks’ rent. In Western Australia, most bonds are capped at four weeks’ rent, though landlords may seek up to six weeks’ rent where the weekly rent exceeds $1,200. Once received, the bond must be lodged with the Bond Administration within 14 days. In Queensland, from 30 September 2024, the maximum bond that may be charged is four weeks’ rent for all rental premises other than moveable dwellings.

When the tenancy concludes without dispute, the bond is returned in full to the tenant. If the landlord intends to make a claim — for example, to recover unpaid rent or rectify damage beyond normal wear and tear — they must apply to the relevant state tribunal or authority. Many states have modernised their bond systems, enabling online lodgements, streamlining refunds, and providing clearer guidance on the circumstances in which landlords may claim against the bond.

Who is responsible for maintenance and repairs in Australia?

Australian tenancy law places primary responsibility for the upkeep, structural integrity, and safety of a rental property squarely on the landlord. This broad position is consistent with landlord obligations in other common-law jurisdictions such as the United Kingdom, Canada, and New Zealand, though Australia has been progressively raising minimum standards in recent years.

Minimum Housing Standards became applicable to all Queensland tenancies from 1 September 2024. Repair and maintenance obligations supporting those standards commenced from 1 October 2022. Comparable minimum standards are in force across other states and territories, covering structural soundness, weatherproofing, functioning locks, operational plumbing and electrical fittings, and safety requirements including smoke alarms.

Tenants bear responsibility for keeping the property reasonably clean, promptly reporting any damage, and refraining from causing deliberate or negligent harm to the premises. Landlords must respond to urgent repairs — such as a burst water pipe or failed heating during winter — promptly, typically within 24 hours for genuine emergencies, though precise timeframes differ by state. Routine repairs must be addressed within a reasonable period.

Routine property inspections are capped at four per year in South Australia. Landlords must provide between seven and 28 days’ written notice before entering the premises; a relevant tribunal may order additional inspections where it considers this appropriate. Similar inspection frequency limits apply across most other states.

Where disputes about repairs or maintenance cannot be resolved between the parties, tenants can apply to the relevant state civil and administrative tribunal. The NSW Civil and Administrative Tribunal (NCAT) is an independent decision-making body with authority to resolve disputes between landlords and tenants under residential tenancy legislation, including matters relating to bonds, evictions, repairs, pets, and other tenancy issues. Each state and territory has an equivalent body — including QCAT in Queensland and SACAT in South Australia.

How are letting agents used in Australia, and what do they charge?

Engaging a licensed property management company or letting agent is widespread practice in Australia, particularly among landlords who are located overseas or interstate, or who simply prefer a hands-off approach to managing their investment. Agents generally offer two tiers of service: a tenant-finding or letting-only service, and a comprehensive property management arrangement covering ongoing rent collection, maintenance coordination, periodic inspections, and end-of-tenancy administration.

Agent fees are not subject to legislative price controls in most Australian states in the way that, for example, tenant fees are capped in the United Kingdom under the Tenant Fees Act 2019. In Australia, the fee structure is determined through negotiation between the landlord and the agent. As of 2025, typical property management fees range from approximately 5% to 12% of weekly rent, depending on the location, service scope, and degree of local market competition. The letting fee — the once-off charge for sourcing and placing a new tenant — commonly equates to one to two weeks’ rent plus GST, though this varies between agencies. Obtaining written quotes from multiple agents before signing a management agreement is strongly recommended.

The law is clear that tenants must not be charged fees by agents. Changes that took effect from 31 October 2024 expressly prohibit charging tenants or prospective tenants for costs incurred during the search, application, or commencement stages of a tenancy, including background check fees and tenancy agreement preparation fees. All such charges are the responsibility of the landlord, not the tenant.

When appointing an agent, verify that they hold a current real estate licence in the relevant state — this can be confirmed through the appropriate state fair trading authority, such as NSW Fair Trading or Consumer Affairs Victoria. For up-to-date fee benchmarks and any applicable regulatory structures, consult the relevant state consumer affairs body.

What taxes apply to rental income in Australia?

All income earned from letting Australian property must be reported to the Australian Taxation Office (ATO), irrespective of where the landlord resides. Even landlords living permanently outside Australia are required to declare all Australian rental income in their Australian tax return, and to claim deductions for allowable expenses such as loan interest, property management fees, council rates, and insurance premiums.

Tax treatment varies considerably depending on whether the landlord is classified as a tax resident or non-resident of Australia. Australian tax residents have rental income taxed at the same progressive marginal rates that apply to other types of income, beginning with a tax-free threshold of AUD 18,200 and rising to 45% at the top bracket. Non-residents, by contrast, pay tax from the very first dollar of income at a flat rate starting at 32.5%, as they are not entitled to the tax-free threshold. These rates reflect the 2024–25 financial year; always confirm current figures at ato.gov.au.

Both resident and non-resident landlords may claim a broad range of deductions against rental income. Allowable deductions include interest on loans used to acquire, construct, or improve the rental property, and immediate deductions for repairs that restore the property to its prior condition — such as fixing a leak or repainting a wall. Further claimable expenses include property management fees, council rates, insurance premiums, water charges, land tax, and depreciation of depreciable assets.

Foreign landlords must also understand the implications of the Foreign Resident Capital Gains Withholding (FRCGW) scheme when disposing of or leasing property. Since 1 January 2025, non-residents who sell or lease property in Australia must withhold 15% of the sale price or lease premium and remit this amount to the ATO. This sits within the foreign resident capital gains withholding framework originally established in July 2016. Two significant changes apply from that date: the withholding rate has risen from 12.5% to 15%, and the previous $750,000 property value threshold has been entirely removed.

Special apportionment rules apply to short-term rentals that are also used personally by the owner. Where a property is rented at below market rates, expense claims may be limited to the amount of rent actually received. The ATO has also published updated draft guidance on rental property income and deductions: refer to TR 2025/D1 and related PCG documents on the ATO website. Given the complexity of these rules — particularly for non-residents — engaging a registered Australian tax agent is strongly advisable.

What are the rules around ending a tenancy or evicting a tenant in Australia?

This area of Australian law has undergone sweeping reform in recent years. Across several states, the longstanding ability of landlords to terminate a tenancy without stating any reason — commonly referred to as a “no-grounds” termination — has been abolished or is in the process of being phased out, making the current framework markedly more protective of tenants than it was just five years ago.

Major legislative changes took effect in New South Wales from 19 May 2025, requiring landlords to provide a stated reason when ending any lease and thereby abolishing no-grounds terminations. Valid grounds include circumstances where the tenant is at fault — through breach of the agreement, damage to the property, or failure to pay rent — as well as situations where the property is to be sold with vacant possession, or where it must be vacated to allow for substantial repairs, renovation, or demolition.

Serious penalties apply to landlords or agents who issue a termination notice on a ground that is not genuine, or who submit supporting documentation that is false or misleading. Parallel reforms have been introduced in Victoria and South Australia. In Victoria, no-grounds evictions were eliminated from 25 November 2025: landlords must always state a legitimate reason to end a tenancy, and at the conclusion of a fixed-term agreement, occupants may remain in the property unless both parties have agreed to a new fixed term.

Notice periods differ by state, tenancy type, and the specific ground for termination. As a general guide, in New South Wales, 90 days’ notice is now required to end a fixed-term lease of more than six months at its expiry, and notice cannot be given before the lease expiry date. Shorter notice periods may be applicable in cases involving tenant default. Always verify the precise requirements in your state before issuing any termination notice.

Where a tenancy is ended for specific reasons — such as sale of the property, planned renovations, or occupation by the landlord — a re-letting restriction is imposed, preventing the landlord from entering into a new residential tenancy for the premises within a prescribed period (which may range from four weeks to twelve months) unless approval is obtained from Fair Trading. Where disputes arise, either party may apply to the relevant civil and administrative tribunal — NCAT in New South Wales, QCAT in Queensland, or SACAT in South Australia — for orders.

What should expat landlords know about managing property remotely in Australia?

Overseeing an Australian rental property from overseas introduces considerable logistical and legal challenges. The most straightforward solution is to appoint a licensed local property manager who can act as your representative on the ground — coordinating inspections, arranging repairs, collecting rent, communicating with tenants, and ensuring the tenancy remains compliant with state law. For expat landlords, having a local property manager in place is a practical and effective way to handle income, expenses, and ATO compliance obligations.

If you wish to authorise another person — whether a family member, trusted friend, or professional agent — to make legal or financial decisions on your behalf in relation to the property, you will need to put in place a formal Power of Attorney. This document must be prepared in accordance with the law of the relevant Australian state, and where you are executing it from outside Australia, it may need to be witnessed by a notary public and apostilled in the country in which you are signing. Obtaining advice from an Australian solicitor before setting up a Power of Attorney is recommended.

On the tax side, if you are classified as a foreign resident for Australian tax purposes, you are required to report all Australian-sourced income in your Australian tax return. Meticulous record-keeping is essential for expat landlords managing properties from a distance — maintaining thorough records of all income received, expenses incurred, and depreciation claimed will ensure compliance with ATO guidelines and support a well-substantiated tax return.

Foreign landlords must also be mindful of the FRCGW scheme obligations described in the tax section above. When a foreign resident sells Australian property, the buyer is required to withhold 15% of the purchase price unless the seller furnishes an ATO clearance certificate confirming Australian tax residency, or a variation certificate specifying a reduced withholding rate. There is no blanket restriction on repatriating rental income earned in Australia — once Australian tax obligations to the ATO have been discharged, funds may be transferred overseas, though your home country’s tax authority may also require the income to be declared locally. Consulting a cross-border tax specialist with expertise in both Australian and home-country tax law is strongly advised.

Frequently asked questions

Can a non-resident own and let property in Australia?

Yes, non-residents may own and let existing Australian property they already hold. However, foreign buyers face more restrictive conditions, and from 1 April 2025 to 31 March 2027 non-residents are prohibited from purchasing established dwellings, with limited exceptions. Non-resident landlords who lawfully own property may continue to let it and must comply with the tenancy laws of the relevant state as well as their ATO tax obligations. Check with the Foreign Investment Review Board (FIRB) at firb.gov.au for the current rules on property acquisition.

Do I need a local agent to let my property in Australia?

There is no legal requirement for private residential landlords to use a letting agent. However, if you are residing abroad, appointing a licensed local property manager is strongly recommended for both practical and compliance reasons — agents handle rent collection, maintenance coordination, periodic inspections, and can ensure that the tenancy is administered in accordance with state law on your behalf.

How much is the rental bond in Australia?

Following execution of the agreement, tenants are generally asked to pay two weeks’ rent in advance plus a bond. The bond is capped at four weeks’ rent in most states for properties where the weekly rent is $800 or less (as of 2025). Properties attracting higher rents may be subject to a bond of up to six weeks. The bond must be lodged with the relevant state authority — it cannot be held by the landlord — within the period prescribed by law. Confirm the current cap with your state’s fair trading or tenancy authority.

How often can I increase the rent on an Australian rental property?

Rent increases are restricted to once every twelve months across all major states, and this limit applies to all lease types including fixed-term agreements of less than two years. You must keep a clear record of when the most recent increase took effect and cannot implement a further increase within twelve months of the previous one, even if new tenants sign a fresh agreement (as of 2025 in NSW and most other states). While most states do not cap the amount by which rent may be increased, tenants are entitled to challenge an increase they consider unreasonable at the relevant state tribunal.

What tax does a non-resident landlord pay on Australian rental income?

Non-residents are liable for Australian tax only on income sourced within Australia, and at higher rates than those applying to residents. There is no tax-free threshold available to non-residents, meaning tax applies from the first dollar of income. As of the 2024–25 financial year, the applicable starting rate for non-residents is 32.5%. Deductible expenses include mortgage interest, property management fees, council rates, and depreciation. Consult a registered Australian tax agent and refer to the ATO website at ato.gov.au for current rates and lodgement requirements.

Can I let my property on Airbnb or a short-term rental platform in Australia?

Yes, but short-term rental accommodation (STRA) is regulated on a state-by-state basis. Short-term letting is lawful throughout Australia, but the rules — and any applicable levies or registration requirements — are set by each state and territory independently, with no national register or night cap in existence. In NSW, registration with the STRA Register is compulsory and the 180-night annual cap applies to unhosted stays in Greater Sydney. Victoria imposes a 7.5% Short Stay Levy on stays of under 28 nights (as of 2025). Always verify the current rules in your state before listing your property.

Can a landlord in Australia evict a tenant without giving a reason?

From 19 May 2025, new tenancy laws took effect in New South Wales that make no-grounds evictions unlawful, representing a significant shift in favour of tenants. These changes also make it easier for tenants to keep pets and improve rules around rental payments. Equivalent reforms have been introduced in Victoria (from November 2025), South Australia, and Queensland. Landlords must now cite a valid statutory ground when seeking to terminate a tenancy. Always check the current grounds and required notice periods in your state with the relevant fair trading authority.

What happens to the rental bond at the end of a tenancy in Australia?

Where a tenancy concludes without dispute and the property is returned in good order — allowing for reasonable wear and tear — the bond is refunded in full to the tenant by the relevant state authority. If the landlord wishes to make a claim against the bond — for example, to recover unpaid rent or meet the cost of rectifying damage — they must apply to the relevant state authority or tribunal within the prescribed timeframe. Many states have modernised their bond systems, enabling online lodgements, faster refunds, and clearer rules governing when and how landlords may make claims. Consult your state’s tenancy authority for current claims procedures and applicable deadlines.