Rental Bonds in Australia

Before renting an accommodation in Australia, all tenants must pay an upfront and refundable rental bond. Typically, the bond amount is equivalent to four weeks’ rent, but this can vary by state and the amount of rent paid; and must be agreed upon & mentioned on the lease agreement signed by both parties.

The primary purpose of the bond is to protect the landlord or property owner against financial loss due to the tenant’s actions during the tenancy, such as unpaid rent, damage to the property, or failure to meet cleaning requirements.

The bond is meant to be returned to the tenant at the end of the tenancy, provided there is no damage or outstanding rent. If there is damage, unpaid rent, or excessive cleaning required, the landlord can claim part or all of the bond.

Though, the bond amount is paid to the landlord/agent, they must in return lodge it with the relevant state authority. It is illegal for the agent/landlord to withhold the bond, so it must be lodged with the state within 7 to 10 days of receiving it. The bond is held by the relevant state authority until the end of the tenancy and a receipt of payment is sent to both the tenant and landlord/agent.

Tenants should safely keep the acknowledgement of bond receipt in case some details like the bond number is needed to claim the bond back at the end of a tenancy.

Getting back the Bond

The State Authority holds bonds in trust for landlords/agents and tenants, or owners and residents, giving all parties equal say on how bonds should be repaid when a rental agreement ends. When tenants vacate the property, the real estate agent will inspect the property and based on its condition discuss with the landlord/agent or owner how the bond money is to be divided. In most cases the bond is fully repaid, however in some cases depending upon the damage to the property (based on the initial condition report), a portion of the bond money may be deducted for repairs.

To get the bond back, tenants must ensure the property is clean, undamaged, and all rent is paid. If disputes arise, they can be resolved through the tenancy tribunal in the respective state or territory

Both the lodgement and refund of bonds are managed by the landlord/real estate agents and tenants must provide a bank account number where the money can be refunded to. After submitting an application for bond refund, the money is deposited into the account within a weeks time.

Where are Bonds Held

• New South Wales (NSW): Rental Bond Board (under Fair Trading)
• Victoria (VIC): Rental bonds are held by the Residential Tenancies Bond Authority (RTBA).
• Queensland (QLD): Residential Tenancies Authority (RTA)
• South Australia (SA): Consumer and Business Services (CBS)
• Western Australia (WA): Bond Administrator (under the Department of Mines, Industry Regulation and Safety)
• Tasmania (TAS): Rental Deposit Authority (RDA), also known as MyBond
• Australian Capital Territory (ACT): Rental Bonds Office
• Northern Territory (NT): Tenancy Trust Account.

Renewing Rental Agreement

When a tenancy is continued, the rental bond typically remains lodged with the relevant state or territory’s residential tenancy authority. The bond will stay in place as long as the tenancy agreement is active. If the tenancy is renewed or extended, the bond does not need to be re-lodged or adjusted unless there are changes to the rental amount or other terms that require a new agreement. The bond will be refunded at the end of the tenancy, provided there are no disputes over unpaid rent or property damage.

Multiple Tenants on a Single Rental Bond

In Australia, multiple tenants can be listed on a rental bond. This is common in shared housing situations where each tenant contributes to the bond. Here are some key points:

1. Bond Lodgement: All tenants’ names should be included on the bond lodgement form submitted to the relevant state or territory’s residential tenancy authority.
2. Shared Responsibility: All listed tenants share responsibility for the bond. If there are any disputes or claims against the bond, all tenants are equally liable.
3. Changing Tenants: If a tenant moves out and a new tenant moves in, the bond can be updated to reflect the change. This typically involves completing a Bond Change of Tenants form and getting agreement from all parties involved.
4. Refund Process: At the end of the tenancy, the bond is refunded to all listed tenants, provided there are no disputes over unpaid rent or property damage.

Tenant Rights and Responsibilities

• Bond Refund: Tenants are entitled to receive the full bond refund unless there is damage to the property, unpaid rent, or other breaches of the tenancy agreement. Any deductions must be itemized and reasonable.
• Inspecting the Property: Tenants should attend the final inspection or be informed of it in advance to ensure the Property Condition Report reflects their understanding of the property’s state.
• Claim Disputes: If there is a dispute over the bond deductions, tenants have the right to challenge the claim through the relevant state or territory’s dispute resolution process.

When paying your deposit, bond, or rent in cash, always obtain a receipt. With modern phones, this can be as simple as an SMS or email confirming the amount, date, and purpose. Keep a copy for future reference.

Never transfer money to a bank account outside of Australia