This is what you need to know about the bonds that tie tenants to
landlords… and what it has to do with landlord insurance.
Rental bonds cause confusion among landlords and tenants.
Just what is the bond?
What is it used for? And who can access the monies?
These are common queries, with the latter often being the catalyst for
To help reduce the risk of conflict, we’ve put together Some FAQs on
NOTE: This is general information only. Landlords and tenants
should refer to the applicable tenancy laws and residential tenancy authority
in their state or territory for specific details on all bond matters.
What is a rental bond?
A rental bond (or security deposit) is a payment
the tenant is required to make when signing up for a rental property.
A bond is a form of financial protection in case there is a breach of
the lease agreement and is used to cover any costs for which the tenant maybe
liable at the end of the tenancy, such as damage to the property, outstanding
utility usage charges or unpaid rent.
The bond is usually paid by the tenant to the
landlord or property manager before the tenant moves into the rental.
It is 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.
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Monday, 23 November 2020