Always make sure that the Bond has been paid in full before giving the keys to your new tenants.
Laws and procedures relating to Bonds differ from State to State.
If you have investments in more than one State/Territory, it is a good idea to educate yourself about the differences.
Also, not lodging Bonds on time or correctly, can result in a fine being issued.
Here is all you need to know:
VICTORIA
Maximum Bond is 1 month’s rent. Before requesting the bond,
make sure you have a signed lease with the first month’s rent paid. You can
lodge the bond online or by post.
If you lodge online, go through the RTBA’s online portal and
register. The money can be collected via
direct debit.
If you lodge the old fashioned way, collect the bond from
the tenant by money order or cheque addressed to the Residential Tenancies Bond
Authority, you can download the form here: https://rentalbonds.vic.gov.au/Bond/Lodgment/Begin.
All parties need to sign the form and then send it with
payment to the RBTA within 10 days of receiving the bond. The form should be
sent to : Residential Tenancies Bond
Authority, Locked Bag 007, Wendouree Vic 3355.
NSW
Maximum Bond is 4 weeks rent. To collect Bond in NSW, you
have to register with Fair Trading NSW.
All landlords in NSW have to use the online service as the
first option for their tenants. Once you
have registered, you must invite the tenants to use the service and ensure they
have BPAY etc.
If you use paper form, download the form from the RBO
System, fill it out and get the tenant to sign, then post the form with payment
to the address on the form or in person at a SERVICE NSW CENTRE.
This has to be done within 10 working days and Fair Trading
will issue a confirmation when the bond is processed.
QLD
Maximum Bond is 4 weeks rent or unlimited if rent is more
than $700 per week. In QLD, landlords
need to lodge the bond with the Residential Tenancies Authority.
Fill out the form and request payment from the tenant. The
bond can be paid by cheque, money order, BPAY or paid directly to the landlord.
If tenants want to pay via BPA, the RTA will send the
details to the landlord. If this is the case, lodge the bond a week before the
beginning of the lease, to ensure the full payment is processed.
If you receive cash or direct debit from the tenant, you
must provide a receipt and make the bond payment to the RTA.
If the money is being paid via BPAY, you can upload the form
online. If the money is being sent via cheque or money order, it needs to be
addressed to the Residential Tenancies
Authority, GPO Box 390, Brisbane QLD 4001.
NORTHERN TERRITORY
The maximum bond is 4 weeks rent but can be increased after
2 years.
Tenants need to pay landlords directly through cash, cheque
or credit card as there is no centralized bond institution in the NT.
You need to provide tenants with a receipt with specific
information like dates, names, amount paid and address of the property. The
bond needs to be deposited in a bank or other financial institution in the NT.
WESTERN AUSTRALIA
The maximum bond is 4 weeks rent but landlords can add $260
if the tenant has a pet and can also ask for more if the rent is over $1200 per
week.
In WA bonds are lodged through the Department of Commerce.
You can accept Cash, Cheque, Credit Card or Direct Debit. In the case of a
money order, the tenant needs to make it out to the Bond Administrator.
A tenant can only pay in cash at the Department of Commerce.
If your preference is for the tenant to have the funds direct debited, the
funds won’t be guaranteed, so lodge the form by email a week before handing
over keys to the property.
You may collect the bond yourself and provide your own bank
details on the lodgement form, but you need to provide a receipt when you
receive the money.
Landlords need to complete a form from the Department of
Commerce and have all parties sign. The form must be lodged within 14 days of
receiving the bond.
Forms can be sent by email or posted to Bond Administration, Department of Commerce, Locked Bag 14, Cloisters
Square, Perth WA 6850.
Email: bondadmin@commerce.wa.gov.au(can only be used if Direct Debit option is selected).
SOUTH AUSTRALIA
The maximum bond is 4 weeks rent but if rent is more than
$250 per week, you can ask for up to 6 weeks and more bond after 2 years.
You must first register for Residential Bonds Online which
is the state’s online service for managing bonds. You can also lodge bonds using paper forms
and accept money through direct debit or cheque payable to the Residential
Tenancies Fund.
Landlords need to complete the form from the Residential
Tenancies Funds, have all parties sign and lodge. You must give tenants a
receipt within 48 hours of payment. The form must then be lodged at a CBS
facility or sent via mail to Residential
Tenancies Fund, Consumer and Business Services, Customer Service Centre, 91
Grenfell St Adelaide SA 5000.
In SA, you must lodge a bond within 2 weeks of receiving
full or part payment of the bond. If the tenant doesn’t sign the form, the bond
must still be lodged within 2 weeks.
TASMANIA
The maximum bond is 4 weeks rent and needs to be lodged with
the Rental Deposit Authority. Tenants cannot pay by cash, only bank cheques and
money orders, and these need to be made payable to the Rental Deposit
Authority.
Once the money is accepted, the Bond Lodgement form can be
downloaded and signed by all parties and then lodged at any Service Tasmania shop. Tenants can also
lodge the form and pay directly to the Rental Deposit Authority by post.
ACT
Maximum bond is 4 weeks rent. Tenants need to provide the
landlord with a money order or bank cheque made payable to the Office of Rental
Bonds. The bond lodgement form has space for credit card details , but these
funds aren’t guaranteed, so you should email the form to rb@act.gov.au a
week before the start of the lease. This way you can be sure the funds have
been collected by the Office of Rental Boards, before the lease starts.
Landlords
need to complete
the form from the Office of Rental Bonds, making sure every party signs. The form needs
to be lodged within 2 weeks of receiving the bond. Once it’s lodged, the ORB
will send a receipt to all parties.
Don't forget to upload all forms onto RealRenta to form part of the applicable tenancy file.
Start your free trial of RealRenta here:https://app.realrenta.com/Signup.aspx
Jason Gwerder
Friday, 2 August 2019
