Rental Bonds-Why are They Necessary

With the present accommodation crisis one has to be thankful for a roof over their head, whether it is owned or rented. So many people are homeless for all kinds of reasons. Some have just not been able to get into a rental home and stay with friends or relatives when possible. Others are fortunate enough to own their own home plus have another one rented out for investment purposes, building capital for the time of their retirement. This has been achieved not by luck but by single mindedness, aiming for a set goal, and hard work to be able to reach it.
This being the case, their investment is something that must be protected at all costs to ensure a successful outcome. One protection is Landlord Insurance for natural disasters and loss or damage due to the actions of tenants. Another is the rental bond that is paid by tenants after the lease is signed by tenants and landlord, or his property manager in Campbelltown. Then a receipt for payment of the rental bond is issued to the tenants by the landlord or his property management.
The rental bond must be lodged with the Rental Bond Authority within a set time or a fine will be imposed on either the landlord or property manager. Once received by the RTA, a receipt of acknowledgement of lodgement is issued by them to the tenants. The tenant’s name will be assigned a number in this receipt and it must be kept safe in order for it to be refunded at the end of the lease. If this receipt has not arrived within three weeks the tenant should check with the RTA to ascertain if it has indeed been lodged by the landlord or his property management in Sydney.
Rental bonds are necessary and are vital in protecting both the landlord and the tenant. In the past some unscrupulous owners have lodged false claims as to damage and kept the bond money that they were paid. This is why the RTA was created, as it holds the bond money until any matters have been investigated and cleared up. If all is well the money is returned to the tenants, but if damage has been done and the property neglected, the money will be given to the landlord to help towards the cost of repairs that are needed, covering lost income while they are being done. This creates a fair system and makes for a better relationship between the landlord and the tenants renting his premises.