New research from Australian comparison site Finder reveals that a quarter of renters are hiding parts of their lives from their landlords.

Finder's survey found that 26% of renters admitted to lying about some aspect of their lives, while 74% said they had never lied about their actions as a renter.

The most common lie was having pets in the home without permission, accounting for 10 percent of renters surveyed.

Smoking or drug use came in second, with 7 percent of renters admitting they smoked indoors, despite a no-smoking policy.

Covering up damage or making unauthorized renovations accounted for 6 percent of tenant lies, while 5 percent admitted to subletting to others without proper approval to earn cash for side businesses.

Another 3 percent of tenants admitted to renting out their homes on platforms like Stayz or Airbnb without permission.

Sarah Megginson, Finder's money expert, urges renters to be very careful when lying to landlords.

"Hiding things from a landlord or real estate agent may be classified as a breach of the lease agreement, a document that outlines the legal rights and responsibilities of both the tenant and the property manager or landlord," she said.

"This type of breach could result in the loss of your security deposit, could see your lease agreement terminated, and could even result in your landlord taking legal action against you, depending on the nature of the lie.

"Even what you may think is a smaller white lie, if you're not honest, you could risk throwing yourself back into the competitive rental market and leaving a black mark on your name."

A separate Finder survey of 510 Australians who have rented in the past five years found that 36 percent lost some or all of their rental deposit.

The lost security deposits were mainly due to carpet and floor damage or pet-related damage.

"When it comes to renting, it's clear that honesty is usually the best policy, as skipping the proper process can be costly," Ms. Megginson said.

"Lying to your landlord can have significant consequences, which can haunt you for years.

"Disclosing issues like property damage ahead of time, rather than trying to hide things, can help you get in front of problems and ultimately save you money and heartache down the track."