How much can the landlord charge for a rental bond in Australian Capital Territory?

Under ACT law, a landlord can require that a tenant pay a rental bond, the amount of which cannot exceed the equivalent of 4 weeks rent. As an alternative or, in addition to the bond, the landlord can request that the tenant obtain either a guarantee, indemnity or insurance for the performance of any of his / her obligations under the tenancy agreement. However, whether a bond, guarantee, indemnity or insurance has been paid, the total cost to the tenant cannot exceed 4 weeks rent.

How must the bond be paid and lodged?

The tenant can pay the bond directly to the landlord. If a private owner, the landlord must lodge the bond with the Office of Rental Bonds (ORB) within 10 WORKING days of receiving the bond. If paid to a managing agent, the agent must lodge the bond within 30 CALENDAR days from receiving the bond. Alternatively, the tenant can make arrangements with the landlord for the tenant to lodge the bond, in which case the tenant is not entitled to possession of the premises until s/he produces evidence that the bond has been paid.

Can the bond be increased if the rent goes up?

The bond cannot be increased during the life of a tenancy. If a tenancy terminates the tenancy, the current bond is disbursed as a result of the termination. If the property is then re-let at an increased rental, the amount of the bond can be increased.

What deductions can a landlord make from a rental bond?

The bond can be used to pay for damage caused by a tenant (other than ordinary wear and tear), any outstanding rent owned, the cost of replacing fuel used by the tenant which was supplied by the landlord, and any legal costs incurred by the landlord for assigning or transferring a tenant's rights under the tenancy agreement. Either party can make an application to the ORB for the release of a bond at the end of the tenancy.



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.