Residential Lease Red Flags Every Tenant Should Spot Before Signing

You have been handed a 22-page residential lease and told to sign by 5pm or the property goes to the next applicant. Most tenants skim the rent and term and sign. That is a mistake. Residential leases routinely include clauses that are illegal, unenforceable, or designed to trap you into paying for things the law says are the landlord’s problem. A ten-minute review now saves thousands later.

Red flag 1: “No pets” blanket prohibitions

In Victoria since 2020, tenants have a statutory right to keep pets unless the landlord obtains a VCAT order refusing consent. Queensland adopted similar reforms in 2022. New South Wales and other states are tightening. A blanket “no pets” clause is increasingly unenforceable — and even where lawful, the landlord must give written reasons for refusal.

Red flag 2: “Professional cleaning required at exit”

Under the Residential Tenancies Acts (New South Wales Section 52, Victoria Section 61, Queensland Section 188, and equivalents), you must return the property in the same condition as the entry condition report — fair wear and tear excluded. A clause requiring professional cleaning beyond the entry standard is unenforceable. Tribunals routinely strike these claims down.

Red flag 3: Rent increases tied to “market” with no cap

Most states cap rent increases to once every 12 months and require 60 days written notice. Victoria, New South Wales (from 2024) and Queensland have added “excessive rent increase” challenges via the relevant tribunal. A clause permitting unilateral or “market-based” mid-term increases is generally void.

Red flag 4: “Tenant pays all repairs”

The landlord is statutorily responsible for the structure, plumbing, electrical, hot water, heating and major appliances. A clause shifting these to the tenant is void. You are only responsible for damage you cause and minor consumables (light bulbs, smoke alarm batteries in some states).

Red flag 5: Bond above the legal cap

Bonds are capped — typically four weeks of rent in New South Wales, Victoria and Queensland (with limited exceptions for high-rent properties). Anything more is unlawful and recoverable. Always check your state’s cap before paying.

Red flag 6: Entry without notice

Landlords cannot enter the property without written notice (usually 24 hours to 7 days depending on the reason and the state). Clauses purporting to allow “unrestricted access” or “inspection at any time” are void.

Red flag 7: Liquidated damages and break fees

Break fees must be reasonable and tied to actual landlord loss. Some states (notably New South Wales) have prescribed maximum break fees on a sliding scale. Anything exceeding the statutory cap or the landlord’s actual loss is a penalty and unenforceable.

The document that protects you

A formal Contract Review points out the clauses to watch in your draft lease, explains the legal position in plain English, and lists questions to raise before signing.

What Claim Done delivers

For a flat fee, Claim Done’s Contract Review parses your draft lease against the Residential Tenancies Act for your state and returns an A4 PDF with good, fair and watch points, key obligations, fees and penalties found, and questions to raise with the other side.

What happens after

Armed with the review, you negotiate amendments before signing. If the landlord refuses to remove plainly unlawful clauses, you have early notice that this is not a tenancy worth entering.