Information on security bonds and rental tenancy
A security bond is a payment made in advance by a tenant to cover any costs for which the tenant may be liable at the end of the tenancy.
The bond is the tenant's money and must be lodged with the Bond Administrator at the Department of Commerce until the end of the tenancy. The bond cannot be used by any party or person unless by written agreement or by a court order.
Amount for a residential tenancy bond
The bond must not be more than four times the weekly rent; unless the weekly rent is more than an amount set by regulation (this was $1200 per week as at 1 June 2013).
If the tenant is permitted to keep pets that are capable of carrying parasites that can affect humans, the pet bond must not be more than $260.
Landlords are not permitted to charge a pet bond for a guide dog.
Amount for a residential parks long-stay tenancy bond
- The security bond must not be more than four times the weekly rent.
- A long-stay security access bond of no more that $100 may be required for keys, remote control entry devices or other security devices.
- A pet bond of no more than $100 may be required if the tenant is permitted to keep a cat or dog on the premises.
Bond assistance from the Department of Housing (formerly Homeswest)
Some tenants will arrange for the security bond to be paid to the owner (or their agent) on their behalf by the Department of Housing. In effect, this money is a personal loan from the Department of Housing to the tenant to help them rent in the private sector. A security bond provided by the Department of Housing must be dealt with like any other person's bond.
Lodging bonds with the Bond Administrator
The publication, Bond administration - A guide [PDF 274kb], provides useful information to property owners, real estate agents and residential park operators who want to lodge tenants' security bonds with the Department of Commerce's Bond Administrator.
Other useful topics:
- Lodging a bond
- Varying a bond
- Pet bonds
- Disposal of a bond
- Can't agree or having other problems?
- Links to the bonds forms can be found here