In the fast-moving Greater Sydney property market, it’s easy to sign a lease and move on. But for owners and property managers alike, the real value in a lease lies not in the headline rent figure, but in the clauses that dictate rights, obligations and risk. At RnJ Realty, we’ve seen time and again how overlooked fine print becomes the source of frustrations, added cost or even legal exposure. In this article we’ll walk through five key lease clauses under NSW law, unpack what they say and what they really mean — with up-to-date legislative context. Understanding them makes better property-management decisions.
1. Repairs & Maintenance Notification
What the clause typically says:
“Tenant must notify the landlord or agent of any required repairs.”
What it really means for your property management:
Under the Residential Tenancies Act 2010 (NSW) landlords must ensure the premises are maintained in a reasonable state of repair. Yet many leases leave timing vague. In practice RnJ Realty sees that delayed notification—which may stem from unclear clauses—is a primary driver of escalating maintenance cost. Early alerts allow proactive management rather than reactive crisis-fixes. For asset managers, a lease clause that simply says “must notify” is a starting point — the response mechanism is just as vital.
2. Access for Inspections & Entry
What the clause typically says:
“Routine inspections require 7 days’ written notice.”
What it really means:
The standard NSW lease must contain terms requiring 7 days written notice for inspections unless otherwise agreed. But real-world savvy matters: frequent unscheduled visits create tenant friction; too few inspections let issues fester unnoticed. RnJ Realty’s approach embeds inspection cadence and notices into the lease framework, ensuring compliance + tenant goodwill. Owners sometimes assume “7 days notice” equals “we can inspect whenever” — that’s not the case, and ignoring it can lead to disputes.
3. Water Usage & Efficiency Clause
What the clause typically says:
“Tenant pays water usage if the property is water-efficient.”
What it really means:
According to NSW Fair Trading, landlords can only pass on water usage charges if the property meets water-efficiency standards and the tenant uses the water for domestic purposes. In practice, RnJ Realty audits properties to check eligibility before relying on this clause. Without this step, the clause is largely unenforceable — meaning owners might miss recouping or risk disputes. For property management, this clause is not just boiler-plate: it’s a trigger for asset compliance review.
4. Alterations & Tenant Fixtures
What the clause typically says:
“Tenant must not add fixtures or make alterations without permission.”
What it really means:
Yes — it’s standard. But the real value lies in how “permission” is defined and what happens at the end of lease. RnJ Realty sees too many leases where the phrase is vague, leaving room for disagreement over which fixtures stay, who removes them, whether restitution is needed. A clause that says “written permission required, and any approved fixture remains property of landlord” gives clarity. For owners, this prevents post-lease disputes over unexpected removals or reinstatements.
5. Pets & Additional Terms
What the clause typically says:
“Tenant must request permission to keep pets.”
What it really means under NSW law:
As of the changes announced 19 May 2025, landlords must give reasons to refuse a pet, and pet ownership is easier for tenants. A generic “no pets without permission” clause is no longer enough. RnJ Realty advises that the lease include a clear “pet request form” process, criteria for approval/refusal, and responsibilities (e.g., cleaning, damage). For property managers, this clause has shifted from optional to strategic: handling pets correctly now protects both owner and tenant and uses the lease as a risk-management tool.
Conclusion
A lease isn’t just a formality — it’s the backbone of how your property is managed, how risks are mitigated and how relationships between owner, tenant and agent function. At RnJ Realty, we believe that empowering owners with clear understanding of those clauses sets us apart in the Greater Sydney market.
If you’d like a free review of your current lease, or want us to walk through how your management agreement aligns with these fine-print realities, contact our team today.
