What you need to know about rental Bonds

This is what you need to know about the bonds that tie tenants to landlords… and what it has to do with landlord insurance.

Rental bonds cause confusion among landlords and tenants. Just what is the bond?

What is it used for? And who can access the monies?

These are common queries, with the latter often being the catalyst for argy-bargy.

To help reduce the risk of conflict, we’ve put together Some FAQs on rental bonds

NOTE: This is general information only. Landlords and tenants should refer to the applicable tenancy laws and residential tenancy authority in their state or territory for specific details on all bond matters.

What is a rental bond?

A rental bond (or security deposit) is a payment the tenant is required to make when signing up for a rental property.

A bond is a form of financial protection in case there is a breach of the lease agreement and is used to cover any costs for which the tenant maybe liable at the end of the tenancy, such as damage to the property, outstanding utility usage charges or unpaid rent.

The bond is usually paid by the tenant to the landlord or property manager before the tenant moves into the rental.

It is separate from the weekly rent and should not be mistaken as being an ‘upfront’ rental payment.

The bond cannot be in any form other than money, and will be held for the duration of the lease.

Right now, at RealRenta Join now and get 50% off the normal low price:
That’s the cost of 1 cup of coffee a week to manage your rental property


RealRenta also has a free vision, so why not check it out


Jason Gwerder
Monday, 23 November 2020

Join our mailing list Receive Free Property Tips and news

Now Partnered With


Contact Us

1300 11 RENT (7368)