In Sydney, newly rented premises usually require the payment of a rental bond. The amount of the bond is four weeks’ rent. The purpose of the bond is to provide some financial security for the landlord in case you, the tenant
- cause any damage to the property during your tenancy
- do not pay your rent
- leave the property before the end of your tenancy agreement
- sublet the property without the landlord’s permission
The rental bond is paid to the Residential Tenancies Authority (RTA) and held by them until you move out or the tenancy agreement ends, whichever happens first. When you move out, provided you have met all your obligations under the tenancy agreement, you are entitled to have the full amount of your bond refunded to you by the RTA. If there is any damage or if you owe any rent, this will be deducted from your bond refund before it is paid to you by the RTA. In some cases, if you dispute a deduction made by the landlord, you can apply to have the matter decided by VCAT.
You should get your rental bond back within 10 business days of moving out and providing your new address to the RTA, as long as there are no disputes about deductions that need to be resolved. If there are deductions that need to be resolved, it may take longer to get your rental bond refund.
A rental bond is a security deposit that covers damage to the rental property beyond normal wear and tear. In New South Wales, the bond is normally equivalent to four weeks’ rent.
An alternative route to paying for your bond in NSW is by using ZeroBonds. Our online process simplifies the rental process in just 4 simple steps:
- Register online
- Make a payment of $49 +14.5% of the bond amount when approved
- Request your landlord to agree to use ZeroBonds
- Move into your new home
Rental bonds are usually refunded within 10 business days of the tenant moving out of the property and leaving it in a satisfactory condition (as outlined in the rental agreement). If there is any damage to the property or if cleaning is required, the rental bond can be used to cover the cost of repairs/cleaning. The rental bond can also be used to cover rent if the tenant leaves owing rent.
In New South Wales, the amount of bond a landlord can request is four weeks’ rent for furnished premises and three weeks’ rent for unfurnished premises. If the rental property is sold during the fixed term of the tenancy agreement, the landlord must transfer the bond to the new owner within 10 days.
If you have moved out of the rental property and everything is in good condition, you should receive your bond back in full. If there are damages or outstanding debts owed, the landlord may deduct these from your bond.
If you do not agree with the deductions, you can apply to the NSW Civil and Administrative Tribunal (NCAT) for a hearing. This must be done within 14 days of receiving notice from Fair Trading that your landlord has applied to have your bond released.
ZeroBonds is one way to reduce or avoid paying a rental bond altogether when moving into a new property. We are a rental service that collects and holds rental deposits from tenants on behalf of landlords, and offer an affordable renting solution that can save you money on your rental bond.