Rental bonds are an important part of renting. We’re here to answer your questions about rental bonds including how much you can be requested and the best ways to ensure you get your bond back at the end of a tenancy.
What is a rental bond?
A rental bond is a security deposit that is used to compensate the property’s owner if you breach any terms of the tenancy agreement. Common examples include rental arrears or damage caused to the property prior to vacating.
Do you have to pay a rental bond?
Bonds are not mandatory. While it is completely up to the owner if they wish to include a bond, most owners will choose to require a bond.
How much can the bond cost?
NSW
Maximum 4 weeks’ rent
VIC
Maximum 4 weeks’ rent if the rent is $350 or under. If the rent is higher than $350, the bond can be more than 4 weeks’ rent, although this must be negotiated between the property manager and tenant.
QLD
Maximum 4 weeks’ rent if the rent is $700 or under. If the rent is higher than $700, the bond can be more than 4 weeks’ rent, although this must be negotiated between the property manager and tenant. ####SA Maximum 4 weeks’ rent if the rent is $250 or under. If the rent is higher than $250, the bond can be up to 6 weeks’ rent.
WA
Maximum 4 weeks’ rent if the rent is $700 or under. If the rent is higher than $700, the bond can be more than 4 weeks’ rent, although this must be negotiated between the property manager and tenant.
TAS
Maximum 4 weeks’ rent
ACT
Maximum 4 weeks’ rent
NT
Maximum 4 weeks’ rent
Accurate as of 23/10/19
Who holds the bond?
State bond authorities typically hold the bond money. The property manager or owner should lodge the bond, in most states, within a maximum of 10 business days. Be sure to get receipt of the bond lodgement.
Are pet bonds legal?
Pet bonds are illegal in every state except for Western Australia. However, be sure to check your tenancy agreement to see if a deep carpet clean is required in the circumstance that a renter has a pet.
How do bond claims work?
At the end of a tenancy, the property manager will highlight any expenses that have arisen due to negligence or breaking certain terms of the lease agreement. This will usually be due to arrears, damage to the property (that isn’t fair wear and tear) or cleaning fees. The property manager will use your bond to service any such costs. If a tenant believes the claim hasn’t been fair, or is excessive, they are encouraged to negotiate with their landlord. If no resolution has been met, then they can apply to their state’s rental tribunal to have the matter settled.
Can I use my bond to pay for my last few weeks of rent?
A tenant’s obligation is to pay rent due until the end of the lease period. Using up the bond isn’t a great idea. Renters should be sure not to use your bond to cover their rent as it may mean that the bond amount is unable to service any other claims against the bond such as cleaning fees or damage. This can result in being required to appear in front of a tribunal to settle remaining claims and can result in being blacklisted in some extreme cases.
How do I make sure I get my bond back?
There’s a couple key measures to take, to best improve your chances of a full bond refund:
- Pay the rent due. It’s better to settle the remaining rent directly and not use the bond to square up the balance. This means you could have a perfect bond refund history.
- Take photos as evidence. When you first move into the property, in any cases of repairs, and when you vacate, make sure to take as many photos of the property as possible. In the event of an unfair bond claim, you can use these as evidence to prove any damages were existing or that you left the property in a similar state to how you found it.
- Do a pre-vacate inspection. Pre vacate inspections are optional and are usually about 2 weeks before the official outgoing condition report. Make sure to ask your property manager to perform a pre-vacate inspection, so they can advise you what things will need to be fixed in order to avoid a bond claim. Take notes from this inspection, so you can cite them if needed.
- Leave the property clean. The biggest reason for bond claims is the property not being clean upon vacating. Consider hiring a professional cleaner if you don’t have the time to leave the property in the same condition that it was presented to you. The problem areas are: carpets, ovens, shower recess and top of kitchen cupboards!
- Deodorize after pets.
- Return all keys.
Read more about getting your bond back here.
Happy renting,
Snug Team