Is a long-term lease right for you?

A long-term lease is five years or more. Many tenants would prefer to live in their rental for much longer than a typical 12-month lease, so a longer term lease can offer stability for both renters and landlords.

Benefits for
renters

  • Certainty. No unexpected rent increases

  • Stability. Have a constant home for kids in school

  • Flexibility. Personalise your rental to suit you

Could a longer lease
work for you?

If you want to establish yourself in a specific location, a long-term lease is ideal. These leases also allow for long-term financial planning that's not available under a short-term lease. You may also find landlords offering long-term leases are more willing to compromise on other lease terms, such as opportunities to improve or modify the space.

Note: This is an initiative of the Victorian Government. Living outside Victoria? The normal leasing guidelines apply for the moment. Read more about long-term leasing in Victoria.

Top questions for renters

How do rent increases work?

In Victoria, how often the rent is increased and the amount it can be increased are agreed in advance as part of your lease agreement. For long-term leases, the rent cannot be increased more than once every 12 months.

What about the rental bond?

In Victoria, you may be asked to top-up the bond amount after five years with 120 days' written notice, but only if there are five years (or more) left on your lease. In other states/territories, nothing changes for rental bonds on properties with a longer lease.

Need help paying your bond? Get a RentBond loan.

How often are property inspections?

On a long lease agreement, your agent/landlord can inspect your property once every 12 months – much better than every three or six months! The first inspection can take place any time within the first 12 months of the lease.

How do I switch to a long-term tenancy?

Happy with your current home and can see yourself living there for more than five years? It's important that you negotiate the terms of your agreement before you end your existing tenancy.

What if I need to end my lease?

If you want to leave your rental property, most of the timeframes and reasons for leaving a rental property are the same as a short-term lease.

My landlord wants to sell/move into my home

If your landlord is selling your home, they must state this in the contract of sale. The property's new owner must then take on the agreement. Otherwise, you and your landlord can agree to end the lease early, so the property can be sold without a tenant.

If the landlord wants to move in, they must give you 60 days' notice to vacate, with the 60th day falling on or after the lease's end date.

Benefits for landlords

  • Stability. Enjoy a guaranteed ongoing tenancy

  • Quick leasing. Long-term rentals are in high demand

  • Certainty. Know your income over the lease period

  • Low vacancy. Reduce your property's time on market

Could a longer lease
work for you?

You want to find a great tenant, but you probably don't want to go through the process and find a new one every year or two. A long-term rental lease can offer you stability of income, ensures your property stays tenanted and guarantees a steady stream of funds. This type of lease will also help you calculate your return on investment over a longer period.

Note: This is an initiative of the Victorian Government. Living outside Victoria? The normal leasing guidelines apply for the moment. Read more about long-term leasing in Victoria.

Top questions for landlords

How do I manage rental bonds?

You may ask your tenant to top-up the bond amount after five years, providing you give them 120 days' written notice. This can only occur if there are five or more years left on the lease agreement or if the lease is extended so there are five or more years left.

How often may I inspect the property?

You can inspect a property on a long lease once every 12 months. The first inspection can take place anytime within the first 12 months.

Can I switch my tenant to a longer lease?

If you're happy with your tenant, you can have a discussion towards the end of the 12-month lease about whether the other party would be willing to switch to a long-term rental lease.

What if my tenant wants to end their lease?

If your tenant wants to leave the property, most of the timeframes and reasons for ending a lease are the same as a short-term lease.

How do rent increases work?

In Victoria, how often the rent is increased and the amount it can be increased are agreed in advance as part of your tenant's lease agreement. For long-term leases, the rent cannot be increased more than once every 12 months.