Bond payments

Learn more about what a bond is, how it’s paid, and what you need to know about managing it during your tenancy. Whether you’re new to renting or just need a refresher, understanding your bond rights and responsibilities is crucial.

Step 1: What is a bond?
A bond is a payment that your property manager may request at the start of your rental agreement. It’s held by the Residential Tenancies Bond Authority (RTBA) throughout your tenancy. The bond serves as security for the rental provider, covering any potential costs such as damage to the property or unpaid rent when you move out. Remember, your bond is separate from your rent and cannot be used to pay rent.

Step 2: Maximum bond amounts
In most cases, the bond cannot exceed one month’s rent. However, if the weekly rent is over $900 per week, or if VCAT has approved a higher bond due to the property’s characteristics, your property manager can request a higher amount.

Step 3: How and when bonds are paid
Typically, the bond is paid before you move in. Once you pay the bond to your rental provider, they are required to lodge it with the RTBA within 10 business days. The RTBA will then send you a bond receipt, which includes a bond ID number. Keep this receipt safe, as it’s important for managing your bond throughout your tenancy.

Step 4: Condition reports and bond claims
Before you move in, your rental provider must provide a condition report. This report documents the state of the property at the beginning of your tenancy. It’s essential that you carefully review the report, add any notes about the property’s condition, and return a signed copy within five business days. This condition report is crucial if there’s ever a dispute about the bond when you move out.

Step 5: Managing bond payments in share houses
In a share house, the bond is managed collectively by all renter. If someone moves out, you’ll need to transfer the names on the rental agreement with the rental provider and update the bond details with the RTBA. At the end of the tenancy, all parties must agree on the bond claim before it can be processed.

Step 6: Requesting additional bond
In some cases, your property manager or rental provider can request extra bond, such as in long-term agreements or when you make modifications to the property. This is known as a bond top-up or modification bond. The additional bond can be requested at the start of the tenancy or later if changes are made.

We hope this guide helps you better understand bond payments and how to manage them during your tenancy. By knowing your rights and responsibilities, you can ensure that your bond is handled correctly from start to finish. If you have any questions or need further assistance, don’t hesitate to reach out to your property manager or consult the RTBA.