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The bond

Before you move in, you will need to pay a bond. This bond money is a form of security for the landlord in case you leave owing money for rent, water, cleaning or damage. The amount of bond will be written in the lease. The maximum amount of bond you can be asked to pay is 4 weeks rent.  Only one bond can be taken for a tenancy. If there is more than one tenant, a separate bond cannot be taken from each one.

Once you give the real estate agent the bond, they must lodge it with NSW Fair Trading within 10 days after the end of the month. If you are renting directly from the landlord, they must lodge your bond with Fair Trading within 10 days of receiving it. You will receive a lodgement slip and a rental bond number in the mail. If you don't get this information, contact Fair Trading.

The bond money is held for the time that you are renting the place. At the end of your tenancy you and the real estate agent carry out a final inspection on the place. If there are no disputes over the condition of the place at the end of the tenancy the agent will fill out a Claim for Refund of Bond Money form. You need to sign this form and post or fax it to Fair Trading to be able to get your bond money back.

Avoiding problems with the bond

 You can do a few things to avoid having problems with getting a refund of the entire bond at the end of the tenancy.

  • Fill out the condition report at the start of your tenancy and note on it any faults and remember to return the condition report to the real estate agent within 7 days of receiving it.
  • Take photos of faults/repairs that you think may cause a dispute later.
  • Look after the place and leave it in the same condition to when you moved in (fair wear and tear excepted).
  • Arrange to do the final inspection with the agent after you have moved out.
  • If the agent won't come to a final inspection with you, have a friend witness it by signing the condition report.
  • If the agent agrees to a full refund of your bond, make sure that the word NIL is written in the Refund Detail box on the Claim for Refund of Bond Money form.

 


 

Copyright © 2011 Money Stuff

An initiative from NSW Fair Trading

 

Last Updated: 26 November 2012

Page URL: http://www.moneystuff.net.au/infopage?id=gf66cyx1

This information must not be relied upon as legal advice. For more information about this topic, refer to the appropriate legislation.

© State of New South Wales through NSW Fair Trading
You may freely copy, distribute, display or download this information with some important restrictions. See NSW Fair Trading's copyright policy at www.fairtrading.nsw.gov.au or email publications@services.nsw.gov.au