When renting a property in Victoria, Australia, it is common for landlords and tenants to enter into a verbal tenancy agreement. However, it is important to understand the legal implications and potential risks of relying solely on a verbal agreement.
Firstly, it is important to note that verbal agreements are still legally binding in Victoria. However, they can be difficult to prove in court if a dispute arises. This is because there is no physical document outlining the terms of the agreement.
Additionally, verbal agreements can lead to misunderstandings or disagreements about the terms of the tenancy. Without a written agreement, it can be difficult to determine things such as the length of the tenancy, rent payments, or maintenance responsibilities.
To avoid these potential issues, it is strongly recommended that landlords and tenants in Victoria create a written tenancy agreement. This document should clearly outline all terms and conditions of the tenancy, including rent payments, bond, length of tenancy, and any other relevant details.
The Residential Tenancies Act 1997 (Vic) provides guidelines for tenancy agreements in Victoria, including the minimum requirements for what must be included in a written agreement. It is recommended that landlords and tenants seek legal advice or use a standard tenancy agreement template to ensure that all necessary information is included.
In summary, while verbal tenancy agreements are legally binding in Victoria, they can be risky and lead to potential disputes. To ensure a smooth tenancy, both landlords and tenants should create a written tenancy agreement that outlines all terms and conditions of the tenancy. This will provide clarity and ensure that both parties are aware of their rights and responsibilities.