How to leave a rental property and get your bond back?
A rental bond is a one-time payment made by a tenant to the landlord or agent or rental property at the beginning of a residential tenancy that serves as financial protection in the event of a lease agreement breach. It is paid in addition to or in advance of rent to the bank account.
It generally comprises four to six weeks’ rent and is due when the lease agreement is completed. The bond payment is submitted to the local Bond Authority and maintained in a trust account for the duration of the tenancy by the property management.
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The property manager will check the property after the conclusion of the tenancy agreement and compare its condition to the initial condition report and pay the bond money. In some circumstances, the property management will file a claim against your bond loan, implying that they feel you owe money. The following are some instances of how a landlord can issue a bond claim:
- If the renter owes rent or a water bill that has not been paid
- If the tenant has not paid the break fee or any compensation due after breaking the lease early.
- If the renter did not return all of the copies of keys that were supplied to them and the locks needed to be replaced,
- If, aside from normal wear and tear, the renter committed damage or did not leave the property in a fairly clean state when compared to the initial condition report.
When moving out, how much notice do you have to give?
You or the landlord can opt to discontinue a fixed-term tenancy arrangement, sign a new fixed-term agreement, or rollover to a periodic agreement, sometimes known as a “month-to-month” lease, at the conclusion of the term.
If you want to leave before the conclusion of a fixed-term lease, you’ll have to break it, which may incur additional charges.
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The length of notice a renter must offer to move out of rental property under a periodic agreement varies by state and region.
- New South Wales: 21 days
- VIC (Victoria): 28 days
- Queensland: 14 days
- Western Australia: 21 days
- SA: 21 days written notice, or one month written notice if the rent is paid on a monthly basis.
- 14-day TAS
- TIME TO ACT: 3 WEEKS
- 14 days NT
All of these dates are subject to exceptions, so check your state legislation for additional details.
How to Recover Your Bond
Guarantee that all rental payments and invoices are made and up to date (check your “rent paid to” date) to ensure that you receive a complete bond refund. Examine the condition report you signed when you first moved in; the property should be returned in the same or better condition than when you first arrived, barring normal wear and tear. Consult your Landlord or Property Manager if you have any questions.
Keeping things tidy and well-maintained from the start is the simplest way to ensure your landlord is happy during the final inspection. It’s tempting to put cleaning on the back burner when you first start a tenancy, confident that you’ll have time for it later.
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Keeping a clean house gets more difficult when you neglect it, whether you live alone, with family, or in a shared apartment. You can hire expert cleaning services if things get out of hand. However, the expenses of home services, which have increased by over 2% in the previous year, might pile up, forcing you to open your wallet merely to get some cashback.
Observe the terms of your tenancy agreement
For better or worse, your tenancy agreement, the legal document you signed at the start of your term, lays out all you need to know. Before arranging your final inspection, go over your contract carefully and check off your responsibilities.
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There may be terms that vary from one tenancy to the next, so read everything carefully and obey the agreement to the letter. Your view on whether or not your carpets require steam cleaning is irrelevant; if you agreed to it, you must pay for it and follow through.
Wear and tear is normal
The good news is that you are not liable for what is known as reasonable wear and tear, which refers to the normal degradation of a property as a result of regular, everyday use, according to NSW Fair Trading. Exposure to the outdoors, as well as time and day-to-day life, may all contribute to normal wear and tear. Despite the fact that real estate tenancy rules differ by state and territory, the industry as a whole recognizes this concept. The following are some examples of normal wear and tear:
- Frayed ropes or faded curtains
- Indentations from furniture and traffic markings on the carpet
- Wooden flooring that have been scratched
- Paint that has faded, chipped, or broken
- A scuffed kitchen benchtop
- Doors or windows with loose hinges or knobs, as well as worn sliding tracks
- Movement-induced cracks in the walls
- Rain stain on carpet caused by a leaking roof or faulty plumbing
- Chipped paint at the light switch
If you disagree with the bond assertion, what should you do?
If the Bond Authority sends you a Notice of Claim, it indicates your property management or landlord has filed a claim against your bond. You must act immediately if you disagree with the assertion. To begin, contact them to learn more about their claim and to try to reach an agreement. If you reach an agreement, both of you can fill out and sign a new Refund of Rental Bond form to get the bond released right away.
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If you disagree with their claim, you should file a request for a hearing with your state or territory’s Civil and Administrative Tribunal. Keep in mind that you must do this within 7 days of receiving the Notice of Claim; otherwise, the bond will be released in accordance with the other party’s claim. The regulations in this area differ by state and territory, so make sure you double-check.
You can request a statement itemizing all of your landlord’s claims if your landlord or agent has informed you they’re claiming anything from the bond but hasn’t supplied you with the documentation or you’re not sure what they’re claiming.
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You can also request a copy of the original condition report as well as all quotations, accounts, receipts, and other documentation that support these claims. It’s also a good idea to request a copy of the most recent water bill, which may frequently help you figure out if you owe the landlord any money.
Refunding the security deposit
Once you and your landlord or property management have agreed on how the rental bond will be repaid, you must submit a signed refund form to the appropriate government agency. Bonds are usually credited by check or direct transfer of rental bonds online.
