As a tenant you have rights under the Residential Tenancies Act 1987, Residential Tenancies Regulation 2006 and Landlord and Tenant (Rental Bonds) Act 1977. This factsheet explains the law in New South Wales about rental bond.

What is bond?

Bond is the money you pay at the start of the tenancy as a security in case you do not follow the terms and conditions of the residential tenancy agreement.

How much you pay

For unfurnished premises the most bond you pay is four weeks rent.

For furnished premises where the rent is less than $250 per week the most bond you pay is six weeks rent.

For furnished premises where the rent is $250 or more per week there is no maximum bond.

Get a receipt

The landlord/agent should give you a receipt for any money you pay including bond.

When you have paid the bond

The landlord/agent must give you a 'Bond Lodgement’ form with details about how much bond you have paid. This should be signed by both you and the landlord/agent. The landlord/agent must lodge this form and your bond with the Office of Fair Trading Renting Services within seven days.

Renting Services will send you an advice slip and a rental bond number. Keep these in a safe place.

If you do not receive an advice slip, contact Renting Services to find out if the bond has been lodged. It is an offence for the landlord/agent not to lodge the bond – they can be fined up to $2,200.

Help to pay the bond

The Housing NSW Rentstart Scheme can help people in the private market to pay bond. Apply through your local Housing NSW office (phone 1800 629 212 or TTY 1800 628 310 for your local office).

Change of shared tenancy

If you are living in share housing and the household members change, you should change the names on the bond form held at Renting Services. A 'Change of Shared Tenancy Arrangement' form should be signed by the person/s leaving, the person/s moving in and the landlord/agent.

At least one of the original tenants must continue in occupation to use this form.

You cannot use this form if Housing NSW has assisted you or any other tenant/s in the household by contributing toward the bond.

(Also see Factsheet 15: Share housing and Factsheet 16: Ending tenancy early.)

How to get your bond back

To get your bond money back at the end of the tenancy, fill in a 'Claim for Refund of Bond Money' form, which is available from:

• Fair Trading Centres (phone 133 220 or TTY 1300 723 404 for your local centre)
• Office of Fair Trading (OFT) website (www.fairtrading.nsw.gov.au)
• any Commonwealth Bank branch
• most real estate agents.
  

If you and your landlord agree about the return of your bond money, sign the completed form, have your landlord it and return it to Renting Services by post, fax or in person. Renting Services can deposit the money into your bank account or post you a cheque (make sure you give a forwarding address).

Transfer of bond

You may be able to transfer your bond from one tenancy to another but only for the same tenants moving from one tenancy to another and if the old landlord agrees.

Fill in a 'Transfer of Bond’ form and have it signed by all the other tenants whose names are on the bond and by the old landlord. Attach this form to the new 'Bond Lodgement' form. (Forms are available from Fair Trading Centres, OFT website, Commonwealth Bank and real estate agents.)

Bonds paid by Housing NSW through Rentstart or Rentstart Plus can not be transferred.

Bond disputes

If the landlord/agent disagrees about the bond refund, they must give you details of their claims with receipts, quotes or accounts. Try to come to an agreement with them and try to get it in writing.

If you cannot come to an agreement, you can make a claim for your bond by filling in the 'Claim for Refund of Bond Money' form with the amount that you believe you should be refunded. You do not need the landlord's signature to complete the form. Return the form to Office of Fair Trading Renting Services.

Renting Services will give the landlord notice that you have made a claim. If the landlord/agent disagrees, they must apply to the Consumer, Trader and Tenancy Tribunal (CTTT) within 14 days of receiving the notice and must tell Renting Services in writing that they have done this.

If the landlord has already lodged a claim for your bond you should:

• apply to the CTTT to pay all or part of the bond to you
• contact Renting Services and tell them you are making an application so that the bond is frozen until the tribunal makes a decision.

Even if Renting Services has returned the bond to the landlord, you can still apply to the CTTT for a refund of all or part of the bond until six years after the end of your tenancy.

Consumer, Trader and Tenancy Tribunal

The tribunal is where landlords and tenants can settle disputes, including decisions about return of bond money. (See Factsheet 11: Consumer, Trader and Tenancy Tribunal.)

Tips to avoid losing your bond

• Check the premises before you move in and note any faults or repairs needed on the condition report. Take photos of any damage.
• Fill in the condition report at the start and the end of your tenancy. Make an appointment to inspect the premises with the landlord/agent just after you have moved out. If they will not do this, fill out the condition report yourself and have it witnessed by someone. Take photos.
• Keep up to date with your rent and keep all receipts.
• Give the correct notice in writing when you leave.
• Do not sign a blank or incomplete bond claim form. It is illegal for the landlord to ask you to do this

Updated: June 2008

Further help

Tenants NSW website: www.tenants.org.au
Tenants Hotline: 02 8117 3750 or 1800 251 101
Tenants Advice and Advocacy Services: see the Tenants NSW website or call the Tenants Hotline to find your local general or Aboriginal service Renting Services (NSW Office of Fair Trading): 133 220

Other factsheets

This is one of a series of factsheets on tenancy issues. Other factsheets are available from www.tenants.org.au/publish/factsheets/ or your local Tenants Advice and Advocacy Service.