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It's not required to prove tenancy but it serves to protect your rights should things turn sour. Just avoids you being dragged up on today tonight as an unscrupulous landlord trying to kick out a defenseless little old lady in 10 years time because the arrangement is verbal and you've had a...

Regardless of who it is, put a lease in place (download from fair trading website), a bond is not mandatory. The lease together with the strata by-laws cement the rights of the parties for the 'what ifs'.