Rental bonds
You think you know everything there is to know about rental bonds, right? You sign a lease agreement, pay an agreed bond, move in and enjoy your rental property for the period of the tenancy, and then the bond is returned upon vacation at the end of the tenancy. Easy as you’d like!
Well, there can be a little bit more to rental bonds than you think.
Firstly, what exactly is a rental bond?
A rental bond is an amount of money that is required to be paid at the commencement of the tenancy. It is security for the rental provider in case there is a dispute at the end of the tenancy, whether that be unpaid rent, potential damage, or cleaning issues.
The bond must be held by Residential Tenancies Bond Authorities. It is important to remember with the bond is that IT IS YOUR MONEY, and you need to protect it by doing everything right as a tenant in the property you’re leasing.
How much will you pay in bond?
By law, the maximum amount of the bond cannot exceed one month’s rent. There are 2 exceptions where the bond can be higher:
1) Where the rent is above $900 a week
2) If the Victorian Civil and Administrative Tribunal (known as VCAT) provides an order of a higher bond
The bond itself is paid upon signing of the lease to secure the tenancy.
Protect your bond
An ingoing condition report will be provided at the commencement of the tenancy. This report details the state and condition of the property. This is your opportunity to note any items, marks, or discrepancies on the report before returning it to the office. It is also wise to take your own set of photos to support the changes.
Ensure that you report any problems or damage during the tenancy to the agent in writing. This will support any issues that arise at the end of the tenancy.
What about wear and tear?
Normal wear and tear is inevitable – this is not classed as damage. Upon vacation of the property, it must be left clean and undamaged.
Is there such thing as a pet bond?
The short answer is no, there is nothing official in the Residential Tenancies Act that allows for a pet bond to be paid. You are of course responsible for your pet and are liable for any damage caused by the pet. This is where a claim could be made against the bond to rectify the damage.
Check out further information regarding pets in rental properties, click here.
When will you get your bond back?
Once the keys have been returned to the rental provider or agent, the bond must be returned to the renter within ten business days. The bond cannot be used for any outstanding rent at the end of the tenancy.
If there are any issues in relation to the return of the bond which cannot be resolved between both parties, it is inevitable that an application will be made to VCAT to settle the dispute.
3BA Interview with Gaile Atkinson
Have a listen to Gaile Atkinson, Licensed Estate Agent from Barry Plant Real Estate, Ballarat, speaking with Brett Mac on 3BA. – Listen here.
Gaile covers everything you need to know about rental bonds, but if you have more questions, we’d love to hear from you. Gaile has over 45 years’ experience in the real estate business. You can reach Gaile on 03 5320 9300, or drop in and say hello, at 806 Sturt St, Ballarat. At Barry Plant, it feels like home!