YOUR RENTAL BOND MONEY

When you take on a residential tenancy agreement, typically the owner requires the tenant to pay a security bond upfront which equates to about four weeks rent.

The purpose of the bond is to provide the owner with an opportunity to mitigate any losses, should they be incurred by the tenant. These losses may include damage to the property (inside and out) or the non-payment of rent.

THE GOVERNMENT BOND ADMINISTRATOR

The bond is not kept by the owner or managing agent, instead it is paid to the Government Bond Administrator, which is a specific Government managed trust account.

Landlords and property managers who fail to comply with this provision and pay the bond into the Government managed trust, will face severe penalties if they do not comply.

A recent example of this resulted in the owner of a self-managed rental properties being fined $24,000 for the misuse of bond monies.

GETTING YOUR BOND MONEY BACK

Typically, tenants receive their bond back at the end of the tenancy once the managing agent has inspected the property to ensure it is in the same condition as at the commencement of the lease (taking into account fair wear and tear).  This can take up to two weeks sometimes that is allowed for (Vivian's try to do it within 2-5 days depending on how many we have to do in one week).
The state of the property condition report (PCR) - a mandatory document required to be completed at the start of the new tenancy. (I cannot believe that most tenants do not send this form back - its in their best interests to do so it will cost them some money in the end).
You should be reminded your Bond will not come back from your Property Manager it will come back for the Bond Administrator so harassing your Property Manager will not hasten the process, sure enquire if they have sent it off no problems.

BOND DISPUTES

Sometimes, an outgoing tenant's view of what constitutes 'fair' depreciation differs to that of the owner's, which can lead to a disagreement over how the bond is disbursed.

If a bond inspection reveals the tenant failed to, for example, clean the oven or mow the grass, the tenant should be given the opportunity to correct this. sometimes, the tenant will leave these smaller tasks to the owner and give permission for the costs of rectifying them to be deducted from the bond.

Occasionally however, an agreement cannot be reached and the manner in which the bond is disbursed remains in dispute. In these situations, the PCR is relied upon to determine whether, for example, the carpet was stained during the term of the tenancy. It may have been stained prior, but if not noted in the P'CR, it is difficult for the tenant to disprove responsibility (hence why you should always fill your PCR in and send it back).

In the event of an unresolved dispute, the courts will ultimately decide the allocation of bond monies.

It is important tenants ensure the PCR is accurate at the commencement of the lease. Make sure you agree with each item listed in the PCR and bring any items you think may have been overlooked to the attention of your property manager.  If you make every effort to return the property to the owner in the best possible manner at the end of the tenancy, you are in a good position to have your bond refunded in full.
(in my experience the main issues are: windows not cleaned, exhaust fans not cleaned, carpets have not been done properly, tracks of sliding doors - these seem to be the issues. It is easy to use the Real Estate Agencies carpet cleaners & cleaners as they will really go hard at those companies if they find anything wrong).  We dont have too many problems as our tenants have been fully formed with a vacate letter of what we are looking for.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!