rental bond

Rental Bonds. What Are They?

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A rental bond is a predetermined payment, paid by the tenant, to the landlord or rental agency. The amount varies but is often the equivalent of 4 weeks rent if the weekly rent is $700 or less. If the weekly rent is above $700 per week there is no bond amount limit. A bond is not the same as rent paid in advance, but is paid in addition to any advanced rent payment. The payment of a rental bond is designed to provide security to the landlord for any breach of contract by the tenant in relation to care and maintenance of the property.

It is not compulsory to request a rental bond. If requested however, a receipt must be issued to the tenant on payment of this. A rental bond cannot be taken by a lessor or agent, prior to the prospective tenant being provided with a copy of the proposed rental agreement and any body corporate rules and regulations. If bond money is paid, it must be lodged with the RTA (Residential Tenancies Authority), along with the Bond Lodgement (Form 2) by the lessor/agent within ten days of receipt. When renting through a real estate Brisbane agents can help you with this process. If you are renting privately, relevant forms and requirements can be found online.

The RTA will issue an official receipt notice to the tenant, which contains a rental bond number. The rental bond number should be quoted when making enquiries in relation to the bond. When a rental contract reaches is end and the tenant moves out, the bond money is paid back to the them, provided there are no disputes. If the tenants are moving into another rental property, it can be arranged with the RTA to transfer the rental bond to the new rental agreement. To assist with property management Brisbane agencies have all the relevant forms and can assist with any disputes over rental bond agreements.

Sometimes a lessor may agree to allow the tenant pay the bond in installments if they cannot afford the lump sum. Renting a house can be a nervous time for both the tenant and the lessor. Requesting a rental bond gives the home owner peace of mind. For the tenant, having an impartial body such as the RTA holding thier bond in trust can be reassuring when they genuinely look after and maintain the property in accordance with the tenancy agreement. Do your homework and follow the rules governing the payment and lodging of bonds. In doing so both parties can settle into the agreement knowing their interests are safe.