A Guide for Landlords and Tenants
When renting a property in New South Wales (NSW), a rental bond is a key part of the process. Whether you’re a landlord or a tenant, understanding what a rental bond is and how it works can help ensure a smooth tenancy experience.
What is a Rental Bond?
When renting a property in New South Wales (NSW), a rental bond is a key part of the process. Whether you’re a landlord or a tenant, understanding what a rental bond is and how it works can help ensure a smooth tenancy experience.
How Much is the Rental Bond?
For most residential tenancies, the rental bond must not exceed the equivalent of four weeks’ rent. This is a standard set by the Residential Tenancies Act to ensure fairness and consistency.
How Much is the Rental Bond?
For most residential tenancies, the rental bond must not exceed the equivalent of four weeks’ rent. This is a standard set by the Residential Tenancies Act to ensure fairness and consistency.
How Does it Work?
- Payment and Lodgement
- Landlords/Agents: Using the BondsOnline portal, your Agent will set up a bond lodgement request. BondsOnline will email a link to the lead tenant to pay and will notify the Agent once funds have been received.
- Tenants: Following the link from BondsOnline you can pay your bond using EFT, Bpay or even via credit card. There are also facilities out there that provide specialised Finance for bond payments.
Both parties will receive confirmation from the BondsOnline, ensuring transparency.
- During the Tenancy
- The bond remains held by the Rental Bond Board throughout the tenancy.
- For Residential Bonds, any interest earned remains with the government and is not passed on to the Landlord or Tenant.
- Bond ‘Top-Ups’ are not permitted – for example if after some time the weekly rent is increased, the bond is not adjusted.
2. At the End of the Tenancy
- Condition Report: The Agent will assess the condition of the property against the initial entry report to determine if there are any issues requiring deductions from the bond.
- Claim Process:
- If there are no disputes, tenants and landlords can agree on the bond refund amount. The Agent will initiate the claim/refund with BondsOnline.
- After the Agent initiates the claim, the Tenant will receive communication from BondsOnline to agree or dispute the refund/claim.
- If disputes arise, such as disagreement over cleaning or damage costs, either party can apply to NCAT for resolution.
For Tenants: Tips for Getting Your Bond Back
Clean Thoroughly: Ensure the property is as clean as it was when you moved in. Pay attention to carpets, walls, and appliances.
- Fix Minor Damages: Address small issues like replacing light bulbs or patching nail holes.
- Return all Keys and Access Swipes: Return all the keys and access swipes and garage remotes originally provided including any copies that were made during the tenancy
For Landlords: Ensuring a Smooth Process
- Conduct Fair Inspections: Use the condition report as a fair benchmark for assessing any damage.
- Communicate Clearly: Keep tenants informed about any issues and provide itemised breakdowns for bond deductions.
- Know the Legislation: The Residential Tenancies legislation is complicated, so we always recommend that you select a good Agent to manage this process for you.
Resolving Bond Disputes
Disagreements over bond refunds are common, but they can often be resolved through open communication. If a resolution cannot be reached, NCAT provides a platform for both parties to present their case.
Why is the Rental Bond System Important?
By understanding the rental bond process, landlords and tenants can foster a positive rental experience built on clear expectations and mutual respect.
For more information or assistance with your investment property or tenancy, feel free to contact us – we’re here to help!
