All You Need to Know About a Bond & Upfront Rental Payment
Lodging the Bond
The amount paid must be written on the lease agreement and signed by both parties. The landlord/agent must then lodge the bond payment and bond lodgement form to the relevant state authority. A receipt will then be sent to both the tenant and landlord/agent. It is illegal for the agent/landlord to withhold the bond, so it must be sent off within 7 days of receiving it.
The bond is held by your relevant state authority until the end of the tenancy. Once the lease agreement has expired and the final inspection has occurred, it will be decided whether or not you and the landlord agree on any damages and the condition of the property (based on the initial condition report). As a result you may be required to repair damage or revisit the property to re-clean areas which are not left in a satisfactory state. Should the landlord need to recoup costs related to damages, and these are agreed to by both parties, the cost will be deducted from your payment.
If you have agreed on how the money will be divided, a claim can be made by completing a Bond Claim Form and sending it to your relevant state authority.
If you do not agree, you can apply to your relevant state tribunal to assist with a resolution to your rental bond dispute. The tribunal will then conclude how the bond will be distributed. Both parties are eligible to apply for a hearing regarding bonds at any time. Note: A claim must be made within 10 days of the knowledge that either the tenant or landlord is leaving the property.
Your relevant state authority will refund the amount of the bond directly into your bank account given that the account details have been provided, signatures match and no changes have been made to the initial information provided.
However, if the bank details provided are not correct, your relevant state authority will then send a cheque to the forwarding address. If the state authority does not have either the bank details or the forwarding address, they will hold the money until the payee’s identity can be verified.
Sub-letting and Transferring a Tenancy Agreement
If you have been allowed to sub-let the premises, you will then become the landlord / agent for the sub-tenant which brings additional responsibilities. This will include lodging their bond with your relevant state authority and going through the same process your landlord went through with you.
If you need to move out of the property and transfer your tenancy to someone else, you will need to fill out a Transfer of Bond Form. This form needs to be sent within 5 days of the new tenant’s arrival and can be obtained from your real estate agent.
If, as the tenant, you choose to not obey and uphold your responsibilities of the rental agreement, you are at risk of losing your money.
- Renting vs Buying
- How To Maximise Your Chances Of Securing A Rental Property
- Key Questions To Ask Before Signing A Tenancy Agreement
- All You Need To Know About A Bond & Upfront Rental Payment
- The Responsibilities of Your Landlord
- Things To Do Before You Move In
- Your Rights as a Tenant
- Sharing a Property