Everything you need to know about your Rental bond.

If you’re planning on renting a property, the landlord or Property Manager will ask you to pay one months rent up front and a bond. The Bond is usually the equivalent to one month’s rent, however, it can be more in some situations.

The bond is held as a security that you’ll do the right thing as a tenant - pay your rent on time and don’t damage the property while you’re living there. If your rent is paid up and you don’t damage the property, then you can expect to get your full bond returned to you when you vacate.

Bond amounts can vary slightly from state to state, but in Victoria, the landlord can charge you a maximum of 4 weeks rent if you are paying less than $350pw in rent. If your paying more, the bond is negotiable.

Your Bond will be lodged with the Residential Tenancies Bond Authority (RTBA) who will require both you and the landlord to sign a Bond Lodgement form. This form will outline the names of all tenants, the landlord, the property details and the bond amount.

The RTBA will then hold the money until you decide to move out of the property.

When the time comes for you to vacate, you and the landlord will need to agree on the amount to be distributed from your bond. If there is any rent owing or you’ve damaged the property, then the owner may request to deduct the amount owed from your bond.

If you can’t come to an agreement on how the bond is to be distributed, then the matter will have to be taken to VCAT and both parties will have to explain why they can’t agree on how the bond is to be divided.

If the rent is paid up to date and there is no damage to the property, both you and the landlord will need to complete a Bond Return form – this can now be done online. Once all parties agree to how the bond is to be distributed, the RTBA will then transfer the funds to your nominated bank accounts.

There are a few things you can do help make sure you get your bond back as a tenant:

1. Make sure that a proper Ingoing Condition Report is done before you move into the property. Take lots of photos and notes on the condition of the property to make sure you’re not blamed for any existing damage.
2. Make sure the bond is lodged by the owner and you receive a receipt.
3. Try to have the Property Manager or Landlord meet you at the property once it’s been professionally cleaned and do the vacate inspection together.
4. When conducting the vacate inspection, make sure you get the photos and notes you made during your Ingoing Report.
5. Most bond disputes are about cleaning – my recommendation is to get a professional bond clean prior to vacating your property instead of trying to do it yourself.

As long as there’s no need to take the matter to VCAT, you should have your Bond back within two weeks.