Renting terms and definitions

Agent: a person who acts on behalf of a landlord for the renting and managing of a property.

Arrears (also known as rent arrears): when a tenant fails to pay, or falls behind on rental payments, they are in ‘rent arrears’. Rent arrears of more than 14 days can be grounds for non-payment termination in NSW.

Boarder/lodger: renters who pay for the right to occupy residential premises, but who are not covered by the Residential Tenancies Act 2010.

Boarding Houses Act: the law which outlines the rights and obligations of proprietors and residents of certain types of boarding premises. Read more about the Boarding Houses Act.

Bond: the amount of money paid by the tenant/s as security for the residential tenancy agreement. A bond cannot exceed the value of 4 weeks’ rent. Landlords can make claims against bonds for unpaid rent and damages. The terms ‘bond’ and ‘security deposit’ are often used interchangeably, although technically ‘security deposit’ is the term for boarders/lodgers, not tenants. Read: Security deposit.

Breach notice: a formal notice to either the tenant or landlord, stating the conditions of the Agreement have been breached.

Break fee: an amount of money a tenant pays to end the tenancy without using a legal reason. Break fee amounts are regulated. Find out more about break fees.

Co-tenant: you and the other tenant/s named on the tenancy agreement for a property. Co-tenants share the responsibilities and liability for any damages or debt, both as a group but also individually. This means the agent or landlord can make you pay the whole amount not just your share.

Conciliation: an alternative dispute resolution process and the first step of the hearing process at NSW Civil and Administrative Tribunal (NCAT). Find out more about conciliation.

Condition report: a document that records the general condition of the rental property, room by room, before you move in. The more detailed the report, preferably including time-stamped photos, the less chance there will be a dispute at the end of the tenancy. If there is a dispute about damages to the property, a detailed condition report will help at NSW Civil and Administrative Tribunal (NCAT).

Damage: any changes to the condition of a rental property caused by the tenant’s neglect or intentional misuse. This can include mould (if the mould is caused by neglecting to use an exhaust or extractor fan), scratches in paint, or damage to kitchen surfaces.

Eviction: if a person occupying the premises is in breach of their agreement, they may be issued a notice to leave the premises for failure to meet their obligations.

Fair wear and tear: a reasonable amount of damage or deterioration of the property that occurs due to exposure, time or normal use, despite care and maintenance. This is distinguished from wilful, irresponsible, or negligent damage. Read about the difference between ‘fair wear and tear’ and ‘damage’.

Fixed-term agreement: a residential tenancy agreement that lasts for a set term, between a stated start and end date.

Head-tenant: the person whose name is on the tenancy agreement for the property you live at, and who sub-lets a part of the premises to another person under a separate written agreement. The head-tenant is the subtenant’s landlord.

Holding fee/holding deposit: money paid to the value of one week’s rent to a landlord or agent to not rent the premises to someone else, pending the approval of your tenancy application and signing a residential tenancy agreement. This money goes towards rent when your tenancy starts.

Key deposit: a prohibited clause in which landlords request a separate deposit in exchange for keys to the property. Key deposits are not lawful in NSW.

Landlord: a person who grants the right to occupy a residential premises under a residential tenancy agreement.

Ledger: the record of rental payments, tracking your paid rent and any outstanding payments. Can be used to secure new rental properties, or as evidence before the NSW Civil and Administrative Tribunal (NCAT).

NCAT: NSW Civil and Administrative Tribunal. NCAT provides tribunal services to help tenants resolve disputes fairly and according to the law. Tenancy disputes are dealt with under the Consumer and Commercial Division.

Notice of entry: the written notice which the landlord/agent is required to provide before entering the property. Timeframes vary depending on the purpose of access.

Occupancy agreement: an agreement between a boarder/lodger and the proprietor. An occupancy agreement needs to comply with the NSW boarding house occupancy principles.

Orders: legally binding directions made by NCAT which are final and binding. You must comply with the orders.

PBSA: Purpose-Built Student Accommodation, also known as managed student accommodation.

Periodic agreement: a residential tenancy agreement that has no fixed end date and so continues until either party gives notice.

Proprietor: the person or company that runs and manages a boarding house.

Rent: the regular amount payable for the right to occupy premises.

Rental Bonds Online: the secure digital service to lodge, manage and refund rental bonds held by NSW Fair Trading. Visit Rental Bonds Online.

Residential Tenancies Act 2010: the law which outlines the rights and obligations of landlords and tenants. Read more about the Residential Tenancies Act.

Residential tenancy agreement: an agreement for the right to occupy residential premises. An agreement may be in writing, oral or partly in writing or partly oral.

Routine inspection: when the landlord or agent inspects the condition of the rental property. In NSW, these can be conducted a maxium of 4 times in a 12-month period, and the landlord/agent must give 7 days’ written notice to inspect.

Security deposit: the amount of money paid by a boarder/lodger as security for an occupancy agreement. A security deposit cannot exceed the value of 2 weeks’ rent. The terms ‘bond’ and ‘security deposit’ are often used interchangeably, although technically ‘security deposits’ are for boarders/lodgers and ‘bond’ is for tenants.

Share houses: residences occupied by people who rent together. Usually in share houses, residents have their own rooms and share the rest of the premises equally.

Strata by-laws: are rules that all residents living in a strata scheme must follow. You must be provided a copy of the by-laws with your tenancy agreement.

Strata scheme: a building or group of buildings divided into ‘lots’ – such as apartments, townhouses or villas. In a strata scheme, there is a distinction between ‘common property’ and individual property. A strata scheme is managed by the owners corporation who may also hire a management company. Some maintenance and repairs are the responsibility of the owners corporation.

Subtenant: rents part of the premises from the person whose name is on the original tenancy agreement. The person on the agreement is called a head-tenant and is the subtenant’s landlord.

Tenant: a person who occupies a property rented from a landlord.

Termination: is a written notice given either by a tenant or landlord due either a breach of the tenancy agreement, sale of premises, or ending a fixed term or periodic agreement.

Tribunal Member: the NCAT decision-makers. They will hear and decide cases in accordance with the law and the evidence presented.

Disclaimer

This information is current as of November 2024 and is intended as a guide to the law as it applies to people who live in or are affected by the law as it applies in NSW. It does not constitute legal advice.

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Written by SUPRA Postgraduate Advocacy Service and Legal Service November 2024.