Renter Guide

Fair vs Unfair Lease Clauses: The Complete Guide for Renters

By James Holt, Tenancy & Property Law Researcher  ·  Updated January 2025 · 9 min read

Understanding whether a lease clause is fair or unfair requires context — but there are clear patterns. This guide provides a side-by-side comparison of well-drafted, fair clauses versus their exploitative equivalents across the ten most important categories in any residential lease. Use it as a quick reference when reviewing a lease before you sign.

How to Use This Guide

For each category below, the left column shows a fair, well-drafted clause or provision. The right column shows its unfair equivalent. In most cases, the unfair version is either unlawful, challengeable, or a strong signal that the landlord is not negotiating in good faith. When you see language closer to the right column in your lease, treat it as a red flag and raise it with the landlord before signing.

Fair / Acceptable
Unfair / Red Flag
1. Rent Increases
"Rent may be increased once per 12-month period by serving 60 days' written notice. Any increase is subject to the annual rent guideline [or statutory limit]."
"The landlord may increase the rent at any time by giving 14 days' notice. The tenant agrees not to dispute any rent increase."
2. Security Deposit
"A deposit of [X weeks/months] rent is required, capped at the statutory maximum. The deposit will be protected in [named scheme] within 30 days. Deductions are limited to unpaid rent, cleaning, and damage beyond fair wear and tear."
"A security deposit of three months' rent is payable. The landlord may make deductions at their sole discretion. The deposit is not required to be protected in any scheme."
3. Landlord Entry
"The landlord will give at least 24 hours' written notice before entering the premises for non-emergency purposes. Entry will occur at reasonable times between 9am and 6pm."
"The landlord or their agents may enter the premises at any time with or without notice as they deem necessary."
4. Repairs
"The landlord is responsible for maintaining the structure, exterior, heating and hot water installations, and gas and electrical systems. The tenant is responsible for minor maintenance and reporting defects promptly."
"The tenant shall be responsible for all repairs and maintenance to the property during the tenancy, howsoever arising, at their own cost."
5. Move-Out Conditions
"The tenant shall return the property in the same condition as documented in the move-in inventory, fair wear and tear excepted. Cleaning obligations are proportionate to the property's condition at move-in."
"The tenant must arrange a professional end-of-tenancy clean and professional carpet cleaning regardless of condition. The tenant must repaint all rooms in neutral colours."
6. Notice to Vacate
"Either party may end a periodic tenancy by giving not less than one month's written notice aligned to the rental period. During a fixed term, the tenant may exercise the break clause by giving two months' notice after month six."
"The tenant must give 90 days' written notice to vacate. Failure to provide 90 days' notice will result in a fee equivalent to three months' rent."
7. Pets
"Pets are permitted with the prior written consent of the landlord. Consent will not be unreasonably withheld. Where consent is given, the tenant is responsible for any damage caused by the pet."
"No pets of any description are permitted under any circumstances. Breach of this clause will result in immediate termination and forfeiture of the deposit."
8. Late Fees
"If rent is more than 14 days overdue, the tenant shall pay a reasonable administration fee of [statutory rate or nominal flat fee reflecting actual cost]."
"A late fee of $300 is payable if rent is not received by the due date. An additional $50 per day will be charged for each day rent remains outstanding."
9. Subletting
"The tenant shall not sublet or assign the tenancy without the prior written consent of the landlord, which shall not be unreasonably withheld."
"Any subletting, assignment, or parting with possession of any part of the premises for any period is strictly prohibited. Breach results in immediate forfeiture."
10. Dispute Resolution
"Deposit disputes shall be resolved through the tenancy deposit scheme's free adjudication service. Either party may refer other disputes to [named tribunal or court] in the event of disagreement."
"The landlord's decision on any matter relating to this tenancy shall be final and binding. The tenant waives all rights to legal proceedings or adjudication."

The Bottom Line

A well-drafted lease is clear about responsibilities, proportionate in its obligations, and compliant with the law. An exploitative lease is designed to maximise the landlord's rights and minimise the tenant's recourse — often by including clauses that are technically unenforceable but that tenants accept without challenge.

You do not need to be a lawyer to recognise the difference. If a clause reads more like the right column than the left, raise it before you sign, not after.

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Disclaimer: This article is for informational purposes only. Whether a specific clause is enforceable depends on your jurisdiction, the exact wording, and the specific facts. Consult a qualified solicitor or attorney for advice about your lease.

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