Bonds
Information on security bonds and rental tenancy
A security bond is a payment made in advance by a tenant to cover any costs for which the tenant may be liable at the end of the tenancy.
The bond is the tenant's money and must be held by the landlord in trust until the end of the tenancy. The bond cannot be used by any party or person unless by written agreement or by a court order.
The bond generally cannot be more than four weeks’ rent, with some exceptions. These exceptions are:
- in a residential tenancy agreement, where the weekly rent is more than $500 (any amount of bond can be requested);
- in a residential tenancy agreement, where the owner of the property was living in it for the previous three months (any amount of bond may be requested);
- where the tenant has a cat or dog, or both (an extra $100, regardless of the number of pets, can be charged to meet the cost of fumigation that may be required at the end of the tenancy); and
- where a residential park long-stay tenant is provided with security keys, remote control entry devices or other security devices by the park operator (an extra $100 can be charged).
Bond assistance from the Department of Housing (previously Homeswest)
Some tenants will arrange for the security bond to be paid to the owner (or their agent) on their behalf by the Department of Housing (previously Homeswest). In effect, this money is a personal loan from the Department of Housing to the tenant to help them rent in the private sector. A security bond provided by the Department of Housing must be dealt with like any other person's bond.
Lodging bonds with the Bond Administrator
The publication, Bond administration - A guide [PDF 112kb], provides useful information to property owners, real estate agents and operators of residential parks who want to lodge tenants' security bonds with the Department of Commerce's Bond Administrator.
Other topics covered here include: