Property investment remains
one of the best ways to create wealth but success depends on much more than
just property selection and location.
Rental bonds are paid by tenants at the start of
their tenancy and are a goodwill payment held in trust by the specific state
government rental authority, which is used as financial protection for the
landlord in case the tenant breaches the terms of the tenancy agreement.
This protects you if the tenant does not pay all
the rent owed, damages your property, or fails to keep it in a
satisfactory condition, as you will then be eligible to claim some or the
entire bond once the tenancy is over.
At the start of a new lease, you are expected to
provide a bond lodgement form to be filled out by both parties and are
responsible to ensure that it is lodged with the relevant state authority within the correct time period.
The amount of bond is usually about four weeks’
worth of rent, however, it can vary depending on the type of dwelling.
At the end of the tenancy, damage to the property
may be paid for out of the bond, but only if both parties agree.
However, landlords cannot charge tenants for any
fair wear and tear of property that may have occurred during the tenancy.
Examples of fair and wear include faded curtains or
a worn kitchen bench-top.
Conversely, missing curtains or burns or cuts to
the bench-top would likely be considered damage, so the tenant would be
responsible to pay for these to be repaired.
At the end of a tenancy, if your property is left
in good condition and is clean, then both the landlord and the tenant can agree
to have the bond repaid to the tenant in full.
If there is any damage, then the process becomes a
little more complicated as both parties have to agree that damage has
occurred during the tenancy as well as the costs of the repairs.
For example, the landlord may make a claim on the
- Rent not being paid
- Damage caused by the
tenant or their visitors
- Cleaning expenses
- Abandonment of the
premises by the tenant
- Landlord being forced
to pay tenant’s bills
- Loss of landlord’s
article source: https://propertyupdate.com.au/
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Thursday, 11 February 2021