How much can the landlord charge for a rental bond in New South Wales?

For unfurnished premises the maximum bond is the equivalent of the first 4 weeks rent. For furnished premises the maximum bond is the equivalent of the first 6 weeks rent if the rent is less than $250. There is no maximum bond for furnished premises if the rent is $250 or more per week. It is illegal for the landlord to ask for more bond money if the rent is increased. The bond money is set at the start of the tenancy and doesn't increase if the weekly rent increases.

Rental bonds are regulated by the Landlord and Tenant Rental Bonds Act 1977. The tenant must fill out a lodgement form which is signed by both the tenant and landlord (or agent) and the landlord must lodge the rental bond with the Rental Bond Board within 7 days. Bonds lodged with the Rental Bond Board earn interest, which is paid to the tenant at the end of the tenancy.

What is the procedure for getting a refund of the bond, or transferring it to another tenancy?

When the tenancy ends, the tenant must fill out a bond claim form, which must be signed by the tenant and landlord (or agent), and submit the form to Renting Services. Alternatively, the tenant can transfer the bond to a new tenancy. Disputes between the parties with respect to claims against the bond moneys will be heard by the Residential Tenancies Tribunal.

Landlords do not have to lodge bonds from boarders and lodgers and residents of caravan parks and manufactured home estates who own the dwellings in which they live. All other bonds must be lodged with the Rental Bond Board.

For bonds in share housing, the names of all the tenants who have paid bond should be on the bond form. Renting Services has a special form for changes in share housing.



The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.