A rental bond is a security deposit paid by a tenant at the start of a tenancy. It is held in trust by the relevant state or territory bond authority for the duration of the tenancy. If the tenant leaves the property in good condition and owes no rent, the bond is returned in full. If there is damage beyond fair wear and tear or unpaid rent, the landlord can make a claim against the bond.
How much is a rental bond?
| State/Territory | Maximum bond | Bond authority |
|---|---|---|
| VIC | 1 month’s rent (for rent up to $900/week) | Residential Tenancies Bond Authority (RTBA) |
| NSW | 4 weeks rent | NSW Fair Trading (RBO) |
| QLD | 4 weeks rent | Residential Tenancies Authority (RTA) |
| WA | 4 weeks rent (rent under $1,200/week) | Bond Administrator (DMIRS) |
| SA | 4 weeks rent | Consumer and Business Services (CBS) |
| TAS | 4 weeks rent | Property Agents Board |
| ACT | 4 weeks rent | ACT Revenue Office |
| NT | 4 weeks rent | NT Consumer Affairs |
Who holds the bond?
The bond is not held by the landlord or the managing agent. It must be lodged with the relevant state bond authority within a set time after receipt (typically 10 business days in VIC and NSW). This protects tenants from landlords who might otherwise spend the bond during the tenancy.
When can a landlord claim the bond?
A landlord can make a claim against the bond for unpaid rent, damage beyond fair wear and tear, cleaning costs if the property was left in worse condition than at the start of the tenancy, and outstanding utility charges where the tenant is responsible. Fair wear and tear — gradual deterioration from normal use — cannot be charged to the bond.
How is the bond returned?
At the end of a tenancy, both landlord and tenant must agree on the bond disposition. If both parties agree, the bond authority releases the funds. If there is a dispute, either party can apply to the state tribunal (VCAT in VIC, NSW Civil and Administrative Tribunal, RTA in QLD) for a determination.
Frequently Asked Questions
Can a landlord increase the bond mid-tenancy?
In most states, if the rent increases, the landlord can request a top-up of the bond proportionally — but only up to the maximum allowed. The tenant must be given proper notice.
What is a condition report and why does it matter for bonds?
A condition report is a documented record of the property’s state at the start of the tenancy, completed by the landlord or agent and signed by the tenant. It is the primary evidence used at bond claim time. If there is no condition report, or if it was not signed by the tenant, it is very difficult for a landlord to make a successful bond claim for damage.
How long does it take to get the bond back?
If both parties agree, the bond authority typically processes the return within 2 to 5 business days. Disputed claims can take weeks or months to resolve through the tribunal process.
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