What is a Tenancy Bond?
A rental bond is a security deposit a tenant pays at the start of a tenancy.
It is held by the Residential Tenancies Bond Authority (RTBA) and is paid back to the tenant at the end of the tenancy provided no money is owed to the property manager/owner for rent, damages or other costs.
How Much is the Bond?
The bond amount is usually equivalent to one calendar month rent. To calculate the bond take the rental amount x 52 weeks of the year and divide by 12 months.
Eg: $200 per week x 52 Weeks/12 = $867.00 bond*
NB: This is an approximate estimate - it is calculated on a daily rate as per VCAT which differs slightly. The bond amount can be more if the rental price is over $350.00 per week.
Paying the Bond
At the start of your tenancy, you need to pay the bond amount with a separate bank cheque or money order made payable to the RTBA.
A receipt for the bond will be sent to the property address which is shown on the bond lodgement form from the bond authority.
You should keep your bond receipt somewhere safe as you will need it when the tenancy is ending or when a tenant who is listed on the bond receipt is leaving the property.
Your bond will be refunded to you promptly after the property is fully vacated, less any deductions that may be agreed upon or directed by the tribunal. A bond refund cannot be applied for until; all keys have been returned to our office and, a final inspection has been carried out by a property manager.
Landlord claims on the Bond
A landlord may be able to claim some or all of the bond:
- If there is damage done by the tenant which is beyond fair wear and tear
- If the property is left dirty (will need a professional clean)
- If items are left behind which need to be diposed of
- If rent is owing at the end of the tenancy
- If you fail to comply with any other obligations and the landlord suffers some loss as a result of this
Note: If the claim by the landlord is greater than the bond, you may be ordered to pay the extra amount.