20 July 2022

How to increase the bond after a rent increase

A bond can be increased during a long-stay tenancy if there is a rent increase. This bulletin explains the steps involved and what’s legally allowed.

Step one: rent increase  

A park operator may seek to increase the rent during a long-stay tenancy after giving the tenant at least 60 days’ notice in writing of the proposed rent and start date. A rent increase cannot occur before:

• Six months from the start of the tenancy or last rent increase for on-site agreements; or
• 12 months from the start of the tenancy or last rent increase for site-only agreements.

Additional rules apply depending on the type of long-stay agreement and when it was entered into. Information on rent increases is available on our ‘Rent increases at residential parks’ webpage.

Step two: bond increase

Following a lawful rent increase, a park operator can issue the tenant with written notice to ‘top up’ the security bond.

The written notice must state the amount of the increase and the due date for payment, which must be at least 60 days after the day the notice is given and at least:

• Six months from the start of the tenancy or last rent increase for on-site agreements; or
• 12 months from the start of the tenancy or last rent increase for site-only agreements.

The maximum amount of a security bond is four times the weekly rent, and to ask for more is a criminal offence.

Rent and bond increase notices cannot be issued at the same time. A bond increase notice can only be issued after the increased rent is payable.

Step three: payment of funds and giving a receipt

A long-stay tenant should ensure the park operator receives the increased bond payment on or before the due date stated on the bond increase notice.

After receiving the security bond payment, whether in full or part, the park operator must give the person making the payment a receipt for the payment. The receipt must state the date the bond was paid, the name of the person making the payment, the amount paid and the premises it relates to.

Step four: lodge the funds with the Bond Administrator

Within 14 days of receiving the additional bond amount, the park operator must lodge the increased security bond with the Bond Administrator via the BondsOnline system as an eTransaction or by completing a Variation of Security Bond form indicating the new rental amount and the amount of the bond increase. The signed form can be lodged with the Bond Administrator by post, email or in person.

The Bond Administrator cannot accept increases in bond amounts greater than four weeks’ rent and before the date of the rent increase. In both instances, the funds will be rejected.