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Understanding Rental Bond For Tenants

Whether you’re fresh to the rental market or even a seasoned professional, a rental bond is a necessary evil for every tenant – but exactly how does it work?

“The Great Australian Dream”, or more simply, the path to owning a home, is not as straightforward as it once was. The three bedroom brick home in the suburbs isn’t what the next generation can afford, nor necessarily want. As such, people adapt. Since we all need a place to call home, the shift has included opting for apartments, granny flats, relocations into more affordable areas, and even long term renting as a preference for some. 

Despite renting usually coming in second when compared to owning property, it does have its own set of individual perks. Financials aside, renting can allow a bit more flexibility than traditional homeownership would, as tenants are not tied to the property long-term. You’re also significantly less responsible for shelling out funds for repairs, paying for taxes and insurance, and keeping up with other expenses.

However, at the end of the day, a tenant is still living in a property that isn’t theirs. While the relevant paperwork forms a legally binding agreement that covers the terms and conditions a tenant agrees to while living in a landlord’s property, a rental bond is an extra layer of security – but what exactly is it supposed to cover, and how does it work?

Understanding-Rental-Bond-For-Tenants

Everything You Need To Know About Rental Bond

A rental bond or a security deposit is the term commonly used to describe a payment that a tenant is required to make when signing up for a rental property. In the event that the tenant breaches any component of the lease agreement, the rental bond is a form of financial protection for the landlord. It’s used to cover any costs for which the tenant may be liable for at the end of the tenancy, such as damage to the property, outstanding utility usage charges or unpaid rent. 

Rental bond is usually paid by the tenant to the landlord or property manager before the tenant moves into the rental property. It’s completely separate from the weekly rent, and should not be mistaken as being an “upfront” rental payment. The bond cannot be in any form other than money, and will be held for the duration of the lease. The landlord or property manager is then responsible for lodging the bond with the relevant government bond authority, such as the Residential Tenancies Authority in Queensland, within the legislated time frame. Failure to lodge the bond in time may incur fines.

The bond amount must be specified in the lease agreement. Although it is typically the equivalent of four weeks’ rent, the maximum amount of the bond can vary from state to state. The amount of the bond may vary depending on the type of property being rented or the type of lease. In some states, landlords may be entitled to request additional funds to cover pets, or if the property is furnished.

Tenants named on the lease agreement are responsible for paying the bond. In the case of co-tenants, each one is generally responsible for paying their individual share of the rental bond. Once they have paid the amount required, the tenant will usually complete a bond lodgement form and should obtain a receipt from their landlord or property manager. The funds held belong to the tenants, and the landlord/property manager cannot take money from the bond unless they have a very good reason.

Needless to say, rental bonds can be a significant amount of money, particularly to those who are renting for the first time or younger tenants. Even the highest quality of tenants who have always paid their rent on time can come undone with a less than satisfactory exit condition report, which is why professional bond cleaners are always worth their weight in gold to ensure that tenants leave the property sparkling to guarantee that getting their bond back is a stress free and straightforward experience. 

Sourcing Sunshine Coast Bond Cleaners

While your options are certainly vast for Sunshine Coast bond cleaning companies, partnering with a local small business not only benefits our region, but also ensures streamlined communication and high quality services provided. Quite simply, we’re only happy if you’re happy, which is why Sunshine Coast Cleans are committed to performing our services with the utmost attention to detail, in the shortest possible time period. 

We have earned a strong reputation for being a consistent provider of high quality, reliable and detailed bond cleaning, and intend on keeping it that way. Our team members know their stuff, and have a number of years of experience working with local real estate agents, landlords and of course – tenants. For first time clients on the hunt for our region’s best bond clean providers, we even offer a 10% discount. 

To request a quote or discuss our bond clean services available in further detail or what types of cleaning we offer, please get in touch with us today to discuss how our locally based team can solve your cleaning conundrums. 

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