The relationship between landlords and tenants in Australia is regulated by property law to ensure that both parties have their rights and obligations clearly defined. One of the most common questions tenants ask is whether a landlord can change the terms of a lease agreement during tenancy. Understanding your rights is crucial in navigating such a situation, as lease agreements are binding contracts.

This article will provide a comprehensive guide to lease agreements in Australia, focusing on tenant rights and landlord obligations under property law. We'll explore the circumstances under which lease terms can be modified, the legal processes involved, and how you can protect your interests if faced with changes to your lease during the tenancy.

What is a Lease Agreement?

A lease agreement is a legally binding contract between a landlord and a tenant that outlines the terms and conditions under which the tenant will rent the property. These terms typically include the rental amount, payment frequency, lease duration, property use, and obligations of both parties regarding repairs, maintenance, and other property-related issues.

Lease agreements in Australia are generally governed by each state’s Residential Tenancies Act, which provides the legal framework for both landlords and tenants. Therefore, both parties must abide by the rules set out in their specific state's tenancy laws. In general, leases are considered "fixed-term," meaning they are for a specific period (e.g., six months or a year), or "periodic," which automatically renews each week or month.

Can a Landlord Change Lease Terms During the Tenancy?

The short answer is that a landlord cannot arbitrarily change the terms of a lease agreement during the tenancy without the tenant’s consent. The lease is a legally binding contract, and any changes to the terms must follow the legal guidelines set forth in Australian property law. However, there are certain conditions where changes may be permissible, depending on whether the lease is fixed-term or periodic.

Changes in Fixed-Term LeasesIn a fixed-term lease, both parties are bound by the terms until the agreed-upon end date. Therefore, changes to the lease cannot be made without mutual agreement. If a landlord wishes to change the rent amount, impose additional conditions, or modify any other part of the lease, they must first seek the tenant’s consent. If the tenant agrees to the changes, both parties must sign an amended lease agreement. Some key points regarding fixed-term leases include:

• Rent Increases: Rent can generally not be increased during a fixed-term lease unless the lease specifically allows for such an increase. If the landlord intends to raise the rent, they must provide written notice in advance and comply with the rules of the relevant state's tenancy laws.
• Other Lease Changes: Modifications to other lease terms, such as rules on pet ownership, property use, or repairs, require the tenant’s agreement. Unilateral changes by the landlord are not legally enforceable.

Changes in Periodic LeasesIn a periodic lease, the lease automatically renews at the end of each rental period (usually weekly or monthly), and landlords have more flexibility to propose changes. However, they still need to provide proper notice to the tenant in line with state regulations. For example, a landlord might seek to raise the rent or change other lease conditions, but they must provide sufficient notice (typically 60 days) and adhere to state laws. In either case—whether the lease is fixed-term or periodic—tenants have the right to challenge changes if they believe them to be unreasonable or if they violate tenancy laws.

Legal Guidelines for Lease Modifications

The process for changing lease terms is governed by each state’s tenancy laws. Below are the general steps and guidelines landlords must follow if they wish to modify the lease agreement.

Written AgreementChanges to a lease agreement must be documented in writing and signed by both the landlord and the tenant. If the landlord proposes a change, such as increasing the rent or adjusting the terms of property use, the tenant can either accept or refuse the modification. If both parties agree, a written amendment to the lease is necessary.

Proper NoticeFor changes that do not require the tenant’s immediate agreement, such as rent increases in periodic leases, the landlord must provide the tenant with proper written notice. The notice period varies by state but typically ranges from 30 to 60 days. If the tenant disagrees with the proposed changes, they may have the right to terminate the lease or dispute the changes through their local tenancy tribunal.

Rent IncreasesRent increases must follow strict guidelines, especially during fixed-term leases. In most states, rent increases are not allowed unless they are explicitly mentioned in the lease agreement. For periodic leases, landlords can raise the rent, but they must provide adequate notice and ensure the increase is reasonable. Unreasonable rent hikes can be challenged by the tenant through a tenancy tribunal.

Unfair Lease TermsAustralian law protects tenants from unfair lease terms. Any change to the lease that significantly disadvantages the tenant can be contested under state tenancy laws. Tenants have the right to seek legal advice or file a dispute with their local tribunal if they believe a lease modification is unfair or breaches their legal rights.

Dispute ResolutionIf a tenant and landlord cannot agree on a proposed lease modification, they may need to pursue dispute resolution. Most states have tenancy tribunals that handle disputes between landlords and tenants. These tribunals can review the lease terms, consider the circumstances of the dispute, and make a legally binding decision.

Tenant Rights: What to Do If Your Landlord Wants to Change the Lease

If your landlord proposes changes to the lease during the tenancy, it’s essential to know your rights and the steps you can take to protect yourself:

Review the Lease AgreementBefore agreeing to any changes, carefully review your existing lease agreement. Check whether it includes any clauses that allow for modifications, such as rent increases or changes in property use. If your lease does not explicitly allow for the proposed changes, you have the right to refuse them.

Seek Legal AdviceIf you're unsure about the legality of the proposed changes, seek advice from a legal professional or contact your state's tenancy advisory service. Organisations like the Tenants' Union of NSW or Consumer Affairs Victoria offer free advice and support for tenants.

Negotiate with Your LandlordIf the proposed changes are reasonable and you’re willing to consider them, try negotiating with your landlord. You might agree on a rent increase in exchange for property improvements or other benefits.

Challenge Unreasonable ChangesIf you believe the proposed changes are unreasonable or unfair, you have the right to challenge them. Most states allow tenants to file disputes with their local tenancy tribunal, where an independent decision will be made based on the facts of the case.

Terminate the LeaseIn some cases, tenants may choose to terminate the lease rather than accept the proposed changes. If the landlord’s changes are substantial or significantly alter the original agreement, you may have grounds to terminate the lease without penalty. However, always seek legal advice before taking this step.

Landlord Obligations: Legal Requirements for Lease Modifications

Landlords in Australia must follow strict legal procedures when seeking to modify lease terms. These include:

• Providing Proper Notice: Landlords must give tenants adequate written notice before making any changes to the lease. The notice period and requirements vary by state but generally range from 30 to 60 days.
• Ensuring Fairness: Any proposed changes must be fair and reasonable. Unfair changes that disproportionately benefit the landlord or disadvantage the tenant may be deemed invalid by a tribunal.
• Complying with Tenancy Laws: Landlords must ensure that any modifications to the lease comply with state tenancy laws. Failure to follow legal procedures can result in disputes or legal action from the tenant.

Common Lease Changes: What to Expect

Here are some of the most common changes landlords may propose during a tenancy and how they are typically handled under Australian property law:

Rent IncreasesRent increases are one of the most common modifications landlords seek. In periodic leases, rent increases are generally allowed, provided the landlord gives proper notice and the increase is reasonable. However, rent increases during a fixed-term lease are generally not allowed unless explicitly stated in the agreement.

Changes to Property UseLandlords may sometimes seek to change the terms of property use, such as imposing restrictions on pets or altering rules about property maintenance. Any changes to property use must be mutually agreed upon by the tenant and landlord and documented in writing.

Additional Fees or ChargesLandlords may propose adding fees or charges to cover certain costs, such as maintenance or utilities. As with other lease changes, these must be agreed upon by the tenant and cannot be imposed unilaterally.

While landlords can propose changes to lease agreements during a tenancy, they are bound by Australian property law and must follow legal procedures. Tenants have rights that protect them from unfair or unreasonable changes, and any modifications must be agreed upon mutually.

Whether you're a tenant facing a proposed change or a landlord seeking to modify lease terms, it’s important to understand your rights and obligations. If in doubt, seek legal advice or contact your local tenancy advisory service to ensure the process is handled legally and fairly.

Contact New South Lawyers today for personalised advice and assistance in protecting your tenancy. Whether you're a landlord or tenant, we’ll guide you through every step, ensuring you’re informed and prepared for any changes. Reach out today for a consultation.