Rental bond
A rental bond is money that the tenant pays at the beginning of a tenancy which the lessor/agent can claim if the tenant owes money for rent, damages, or other costs at the end of the tenancy. The rental bond is not the same as paying rent in advance.It is not compulsory to take a rental bond, however if one is taken, it must be given to the RTA for safe keeping within 10 days. The lessor/agent is unable to take any money from a prospective tenant (including bond) until they have been given a copy of the proposed agreement and any body corporate rules or by-laws which form part of the agreement. This does not include a key deposit, taken by the lessor/agent as security to allow a tenant to view a potential rental property.
The maximum bond that a lessor/agent can charge is equivalent to 4 weeks rent if the rent is $700 a week or less. If the rent is more than $700 a week there is no limit on the bond that can be taken. The maximum bond for employee housing is different.
When a bond is paid, the lessor/agent needs to:
- give the tenant a receipt for the bond money immediately
- fill in a bond lodgement (form 2) - the tenant needs to sign this form, and
- send the money with a completed and signed bond lodgement form to the RTA within 10 days of receiving it.
The RTA holds the bond while the tenant lives in the place, and pays it back when the tenant moves out (provided there is no disagreement).
The RTA will send a notice (called an official receipt) to advise when the bond has been received.
The tenant should keep this receipt in a safe place. It has the rental bond number on it, which will be required if they contact the RTA about the bond.
If a receipt has not been received within a few weeks, the tenant should contact the RTA to check whether the bond money has been received.
A penalty may apply to the lessor/agent if they do not send the bond money to the RTA within 10 days.
If a tenant can't afford the bond
If a tenant can't afford the bond, the lessor/agent may let them pay the bond in installments, or they may be able to get a bond loan. The tenant should talk to their lessor/agent about installments, or call their closest Department of Communities (Housing and Homelessness Services) office to ask about bond loans (they are listed in the White Pages).If the lessor agrees to receive the bond in installments, they must lodge each installment with the RTA within 10 days of receiving it along with a completed part-payment of rental bond (form 7).
Transfer of bond
Sometimes a tenant can transfer their bond from their last place to their new place. The RTA holds onto the tenant's money instead of paying it back at the end of their last tenancy, and the money then counts as the bond for their new place. The tenant can only transfer the bond if the new lessor/agent and the previous lessor/agent agree.To arrange for a transfer of bond, the previous lessor/agent should fill out a transfer of bond (form 3) and send it to the RTA. The form allows for some of the bond to be paid to the previous lessor/agent and/or the tenant (if necessary).
The new lessor/agent can contact the RTA and check that the bond can be transferred.
The tenant and the new lessor/agent should complete a bond lodgement form and send it to the RTA. Any additional bond money, which may have to be paid if the new bond is more than the bond money held should be included. The lessor/agent must give the tenant a receipt.
If the original bond was a loan from the Department of Communities (Housing and Homelessness Services), it can only be transferred if:
- there was no claim on the bond by the previous lessor/agent
- all the tenants responsible for the bond loan move to the new place.
More information
Last Updated: 30 June 2009
