Tenant22 April, 2024

First-Time Renters: Here’s How ZeroBonds Can Help With Your Bond

First-Time Renters: Here’s How ZeroBonds Can Help With Your Bond

Congratulations on taking the first step towards renting a new place! Securing a new rental can be tricky and the bond can be a particularly daunting part of the process.

If you don’t already know, finding a rental property in NSW’s dynamic market also means navigating a complex web of financial barriers. The rising cost of rent has clearly outpaced wage increases on a national level, affecting affordability, especially for first-time renters. 

 

The traditional bond dilemma

As part of Australian law, a rental bond is a sum of money requested by the landlord to be paid at the beginning of any tenancy. It is a form of security or financial protection in the case of a breach in the tenancy agreement – such as when a tenant skips out on paying the rent or causes damage to the property.

Traditional bonds require a significant upfront payment, usually equal to around 4 weeks’ rent. When you consider all of the costs associated with moving, this is just yet another financial strain.

Although it seems like a dead end, the financial burden of moving homes can be less stressful with ZeroBonds. Our product is designed to help renters come up with or alleviate the stress of paying the upfront cost of a bond for your new rental property.

I need help with my bond, how does ZeroBonds work?

ZeroBonds is here to change the way you rent. We provide a bond alternative that’s safe, secure and simple so that you can save time and money for the things that truly matter.

Understanding ZeroBonds is essential. We replace the traditional bond payment with a guarantee product. This means you won’t need to pay the full bond upfront, freeing up your cash flow for other move-in expenses. Sounds good, right?

We’re here to help as many people as we can. Here’s what you need to consider regarding eligibility for ZeroBonds:

  • Application Process: ZeroBonds requires an online application, which is typically quicker than the traditional bond lodgement.
  • Credit Check: As with many financial products, ZeroBonds will conduct a credit check as part of the application process, using a government-accredited third party. Having a good credit history can improve your chances of approval.
  • ID Verification: ZeroBonds verifies your identity as part of the standard application process. While an affordability report is optional, a credit score and ID verification are the two main checks for eligibility.

Important to note: While you don’t pay the full bond upfront, you’ll still be responsible for any damages or unpaid rent at the end of your lease. It’s always best to be a responsible tenant and take good care of the property throughout your lease. If there’s a claim against you as a tenant for damaged property, ZeroBonds will cover the landlord first (up to 6 weeks), and then you’ll need to repay ZeroBonds the amount they paid out.

Another important note: Landlords must agree to use ZeroBonds for a traditional bond payment not to be required.

Our product offers a convenient solution in place of having to come up with the upfront cost of a bond. Here’s how:

  • No Upfront Bond Payment: Unlike traditional bonds, you won’t need to pay a large sum upfront when using ZeroBonds. (Remember, landlord approval is still required).
  • Simple Application Process: Apply online and get a decision quickly. If approved, you’ll pay a one-time application fee and a smaller fee upfront (14.5% of the typical bond amount).
  • Lower Upfront Cost: If approved, you’ll pay a one-time application fee and a smaller upfront fee (typically around 14.5% of the traditional bond amount). This frees up your cash flow for other move-in expenses like furniture or deposits for utilities.
  • Peace of Mind for Landlords: ZeroBonds covers your landlord for up to 6 weeks of rent in case of damages or unpaid rent, exceeding the standard bond coverage.

For more details about how ZeroBonds works for tenants, click here.

Benefits of ZeroBonds for first-time renters

Reduced Upfront Costs When Moving Simple Application Process A Small One-Off

Cost

Convenient

& Online

What happens if there’s damage to my property at the end of my lease?

ZeroBonds offers increased security for landlords compared to a traditional bond. They cover landlords for up to 6 weeks of rent in case of damages or unpaid rent, exceeding the coverage of a standard bond.

However, as a tenant, you’re still responsible for the cost of any damages or unpaid rent beyond what ZeroBonds covers. Being a reliable tenant and taking care of the property throughout your lease term is crucial—for the landlord and your pocket.

Ready to move with ZeroBonds? If you are a tenant looking to improve your rental experience, ZeroBonds is here to help.