Stepping into the property market is a daunting prospect, especially for first time buyers or renters. Realistically, most young people will enter the market as renters, as a result of rising living costs. This stage in someone's life may be puzzling, with unfamiliar terminology and expectations. With the help of this page, hopefully some concepts will become clearer.
Q - What is a bond?
A - In the circumstance of renting, a bond acts as a security deposit that a tenant is required to pay to landlord or agent, if asked to do so. It is equivalent to four weeks rent, and acts as a means of security if the tenancy agreement is breached. Money may be deducted or claimed from the bond to cover the cost of damages, cleaning, from replacing locks or security devices without the owner's consent, unpaid rent or other charges.
In New South Wales, the bond is required to be deposited with NSW Fair Trading. An agent or landlord is required to do this within 10 working days, or an alternative arrangement if the bond is paid in installments. If an agent or landlord fails to register the bond, they may be fined up to $2200. The purpose of this is to allow for the tenant to securely claim the bond back, by completing a Claim for Refund of Bond Money form.
For more information, visit: www.tenants.org.au/factsheet-03-bond
In New South Wales, the bond is required to be deposited with NSW Fair Trading. An agent or landlord is required to do this within 10 working days, or an alternative arrangement if the bond is paid in installments. If an agent or landlord fails to register the bond, they may be fined up to $2200. The purpose of this is to allow for the tenant to securely claim the bond back, by completing a Claim for Refund of Bond Money form.
For more information, visit: www.tenants.org.au/factsheet-03-bond