31Oct2023
What Is A Rental Bond, And How Does It Work?
The demand for rental properties has increased in Adelaide, South Australia, due to various factors, including affordability crisis and strong population growth.
According to the Australian Bureau of Statistics, around 49.9 per cent of people in Adelaide were renting privately in the year 2020-21. The majority of households are choosing leased properties over buying new homes in metropolitan cities because of affordable rents.
However, it is important for tenants to thoroughly read the rental agreement and know their rights and responsibilities, especially related to a rental bond.
Many tenants lose their hard-earned bond money at the end of a tenancy due to cleaning. So, this guide will help you understand everything about a rental bond and how it works in the tenancy agreement.
That’s why the majority of them prefer hiring an experienced company for expert end of lease cleaning Adelaide. They follow a proper checklist and help you pass the rental inspection without any conflict.
Let’s Get Started!
What is a Rental Bond?
A rental bond or bond money is a security deposit that renters/tenants pay to landlords/property managers at the beginning of a tenancy. The bond amount is held by Consumer and Business Services (CBS), which is a government body. The amount is returned to the tenant when a landlord passes the inspection. According to the Residential Tenancy Laws in South Australia, landlords can deduct your rental bond to cover repairing and cleaning costs. This means it is a tenant’s responsibility to return the premises in a reasonably clean condition at the end of a tenancy to secure the bond amount.How Does the Rental Bond Work?
There is no denying that the rental bond system is designed to support both tenants and landlords. It is health as security by the landlord against any unpaid rent, agreement breaches and damage to the property. Here is how it works:Bond Amount
The amount of the rental bond is equal to 4 week’s rent for a property. However, it can vary depending on your tenancy agreement.Bond Lodgment
The landlord has to lodge the bond with the RTBA after a tenant signs a rental agreement. The Residential Tenancy Bond Authority is a government body that deposits and manages rental bonds on behalf of both parties.Entry Condition Report
It is a document that outlines the condition of the property at the beginning of a lease. It is important that both the property managers and tenants complete the report after a thorough inspection. Tenants should check the property for existing damages, dirty surfaces and wear and tear and collect proofs in the form of photos and videos. This report can help you determine whether any deductions should be made from the rental bond or not at the end of a tenancy. Make sure you know your rights and responsibilities as a tenant to avoid disputes.Bond Receipt
It is the landlord’s responsibility to provide you with a receipt for the bond payment, which includes the exact amount, the received date and the complete property address.Bond Claims
At the end of a lease, the property’s condition will be compared to the entry condition report. You can claim your bond back in case of no disputes over cleaning or damages. However, the landlord has the right to hold back a part of your bond money in case of dirty surfaces, damaged areas or breach of the agreement. If there is any disagreement about the bond amount, you can apply to the South Australian Civil and Administrative Tribunal to resolve it and get your bond back. Make sure you know your legal aspects of end of lease cleaning when claim your bond. You can book professional end of lease cleaners in Adelaide to secure your hard-earned bond money because they leave no stone unturned to give you quality service.Landlord’s Responsibility
Step-by-Step Guide to Lodge a Rental Bond in Adelaide: Landlords or property managers can follow these steps and lodge a bond with ease.- Visit the Consumer Business and Services Website and create an account.
- Click on the “Lodge a bond.”
- Add the details of a tenancy, such as the landlord’s name, property address, tenant’s name, and the amount of the bond.
- Pay the bond via credit or debit card
- The official body will issue a bond receipt to both parties.
Tenant’s Guide: How to Get a Rental Bond Back?
You can get your rental bond back at the end of your tenancy. Here is the process that you can apply to get it back in Adelaide: It is important for both parties to complete a bond refund form. They can register with Residential Bonds Online for an electronic refund of the amount. The landlord has the right to deduct your bond money for unpaid rent, damage to the property and cleaning costs. If the landlord passes the inspection, the CBS will release the bond to you. In case of any dispute, you must provide evidence of your claim to CBS. These claims can be refused due to lack of evidence. After that, you can apply to the South Australian Civil & Administrative Tribunal to resolve the dispute.Quick Tips to Get Your Rental Bond With Ease
Below are some quick tips to help you get your full bond back without any dispute:- Carefully read your rental agreement and check your responsibilities
- Take photos of the premises and register existing repairs when checking the entry condition report.
- Cross-check the condition report at the end of your tenancy.
- Fix the property damages, such as broken doors, windows, or a leaky tap. You are not responsible for the existing damages and fair wear and tear.
- Book highly trained professionals for a meticulous end of lease cleaning Adelaide and return the property in a clean and shiny state. You can know the cost of professional cleaning service after doing a research work.
- Pay all the outstanding rent and bills
- Return all the keys
- Notify your landlord about the end of your tenancy in advance.
- Do not breach your rental agreement.
