What is a Rental Bond, and How Does it Work?
A rental bond is a security deposit you pay at the start of a tenancy. It’s usually equal to 4 weeks’ worth of rent, held as financial protection for the landlord in case you damage the property or owe rent when you move out.
In all Australian states, the bond money isn’t kept by your landlord or agent personally – it must be lodged with the state government’s bond authority (for example, the RTBA in Victoria or the Rental Bonds Online in NSW). The bond authority safeguards your money until the end of your lease.
Figuring out rental bonds.
When Your Tenancy Ends
You can get your bond back in full provided you’ve met all your obligations – meaning no unpaid rent or bills and no unreasonable damage beyond normal “wear and tear.”
After You Move Out
There’s a final inspection comparing the property’s condition to the condition report from when you moved in. If everything is in good order, both you and the landlord sign a bond release form for a full refund. Any disputes (for instance, if the landlord claims you stained the carpet) can be taken to the state’s tenancy tribunal for resolution.
And when moving out, leave the place clean and in the same condition (minus fair wear and tear) to avoid any bond deductions. If you’ve fulfilled your lease terms, you deserve your bond back in full. It’s your money after all!
How Much Bond Can Be Charged?
In most cases the bond can’t be more than 4 weeks’ rent. Exceptions are if you’re renting a very expensive property where a higher bond might be negotiated.
Only Western Australia allows a separate “pet bond” for keeping pets – other states generally don’t permit extra bond for pets.
Tip: Always get a receipt or record of your bond lodgement from the authority.
Finally…
Remember that your bond is not rent – you cannot opt to use the bond to cover your last month’s rent (a common newbie mistake). Rent must be paid up to your move-out date, and the bond is refunded separately.
Facing a rent increase soon? You might want to check out SaveMyRent – a service that negotiates rent increases down on your behalf, helping you save money on your lease renewal.
