Knowing your rights as a tenant is essential before taking on a lease, to avoid unfavourable conditions such as unwanted financial frustrations, particularly when it comes to getting your bond back.
The rental bond is the ‘Tenants Security Bond’ or the sum of money that tenants have to pay to the landlords / property owners while signing the lease agreement. Generally a bond is calculated as 4 weeks rent, plus an additional pet bond (roughly $250), if applicable, which is used as financial protection for the property, which the owners can claim at the end of your lease, for any unpaid rent, damage to the property, or breaching of the lease agreement. The bond must be held by the Government Bond Administrator, where it is protected until the end of the lease.
There are a few common roadblocks that tenants can face in getting their bond back. In this blog we’re going to unpack these reasons, and discuss the best ways to avoid and deal with them.
Unpaid Rent:
If there is an outstanding amount of money which is part of the rent, the tenant will face a problem in the refund of bond money. Keeping on top of rental payments can be a challenge, particularly as they’re so regular. One way to avoid this is to schedule payments to your landlord and/or property manager, the day before they’re due. Scheduling your rental payments takes the complication and time out of these transactions, and ensures your rent is paid on time/early every due date.
Damage:
If there is physical damage to the property that has been caused by the tenant which is not part of fair wear and tear, the tenant is liable for the damages, and necessary costs for repairs will be taken out of the bond. As a tenant it’s important to treat your rental property as if it were your own throughout your lease agreement. Despite much precaution, of course accidents can happen, however, it’s extremely important to inform your landlord/property manager when this happens, as they’ll have to investigate further and determine whether it is the tenant or landlord that’s liable for the damage. Further to this, if there is existing damage to the property when you move in, ensure your Property Condition Report is correct and precise, and mirrors this existing damage.
Cleaning:
Of course throughout your tenancy, you’ll have routine inspections completed, so keeping your property clean and tidy in the days upcoming to this is vitally important to avoid any breaches. Towards the end of your lease, your property manager/landlord will expect the property to be left in the same condition as stated on the Property Condition Report. Once the property has been cleared of your personal belongings, you’ll need to have the property cleaned, either professionally or if you’re looking to keep costs down, by doing it yourself. Doing a surface level clean for your end of lease inspection will likely never be enough to get your bond back, so here are some of the key areas where your property manager/landlord will look to scrutinise:
- Windows tracks and window sills
- Exhaust fans, ceiling fans, and air-con vents
- Outside edges of your shower screen where mold and calcium build up is evident
- The oven, oven knobs, and stove hobs where grease and grime is present
- Ceiling cobwebs
- Filters in the washing machine, dishwasher, and dryer (if applicable)
- Dishwashers – particularly under the bottom of the door where crumbs and dishwashing powder can collect
- The top of cupboards where dust build up is evident
Once the property owner and the tenant agree to the end of lease period, and the tenant returns the property in the same condition as outlined in the Property Condition Report, a Bond Statement gets drafted. Following this, the tenant and the landlord will sign the Application for Disposal of Security Bond in order to release it from the Bond Administrator. If there is an unsettled dispute between the tenant and the owner, the bond will be held by the administrator until the matter is resolved by the Magistrates Court. For these matters, the Property Condition Report will be checked in the case to determine whether any damage was caused during the tenancy. If you follow the terms and conditions of your tenancy agreement, you are in a good position to retrieve your bond money.