Bond (Security Deposit)
Property Management
A refundable payment made by a tenant at the start of a lease, held as security against damage or unpaid rent.
Full Explanation
In Australia, the bond is typically equivalent to four weeks' rent for unfurnished properties and six weeks for furnished properties in most states. Bonds must be lodged with the relevant state bond authority (e.g., Rental Bonds Online in NSW, RTBA in VIC) within prescribed timeframes. At the end of the tenancy, the bond is refunded to the tenant unless the landlord makes a legitimate claim for damage beyond fair wear and tear or unpaid rent.
Example
Your tenant pays a $2,400 bond (four weeks of $600/week rent) which is lodged with the state bond authority within 10 business days.
Frequently Asked Questions
How much bond can a landlord charge?
In most Australian states, the maximum bond is four weeks' rent for unfurnished properties and six weeks for furnished properties. Some states have different rules, so check your state's residential tenancy legislation.
What can a landlord claim the bond for?
A landlord can claim the bond for unpaid rent, damage beyond fair wear and tear, cleaning costs if the property was not left in a reasonably clean condition, and replacing lost keys. Claims must be supported by evidence such as photos and condition reports.