You may recall times when you have booked a hotel room or hired a loan car and you have had to leave an imprint of your credit card as security should anything go wrong. When you rent a property, the idea is the same; however, the security you leave is called a rental bond.
A rental bond is taken at the beginning of a tenancy in order to financially cover the lessor. For instance, it means that in the event that a breach of contract and rent is not paid or damage is caused, there are funds to cover this. It is not required by the RTA that a bond is taken; however, wise lessors and agents take bonds as protection against a breach of tenancy agreement.
How much will a rental bond be?
Generally, if the rent to be paid on a weekly basis is $700 or less, then the maximum amount an agent or lessor can ask for a bond is the equivalent of 4 weeks rent. In cases where the rent to be paid is higher than $700 an agreement needs to be made between all parties involved, that is, the tenant, agent and lessor.
What happens when a bond is paid?
Once the agent or lessor receives the bond to be paid they have 10 days to lodge this with the RTA in full for safe keeping. At the end of a tenancy the tenants need to put in a claim to get their money back; if the lessor believes they are entitled to keep some of the money then they need to submit a claim also. The agent will communicate between parties as to what is happening.
Can’t afford bond?
It is a fair assumption that while many can afford to pay the weekly rent asked for real estate, not all can afford the bond that comes with it. Should this apply to you an agreement may be entered into with the agent or lessor to pay the bond in instalments or you can contact the Department of Housing and Public Works to enquire about a bond loan.
If you would like more information regarding real estate for rent and the bond that is expected for each, you need to get in touch with a competent, reliable agent in Liverpool who has a finger on the pulse in their field and can tell you all you need to know.