Understanding Rent, Bond & Holding Deposits in ACT

Renting a home in the Australian Capital Territory (ACT) involves understanding various legal aspects to ensure both tenants and landlords abide by their rights and responsibilities. Key components to understand include rent, bond, and holding deposits, which are regulated under the Residential Tenancies Act 1997. This guide will clarify what you need to know about each, ensuring a smooth renting experience.

Understanding Rent Obligations in the ACT

In the ACT, rent is usually paid weekly or fortnightly, and both parties must agree on the payment method. Rent cannot be increased more frequently than once every 12 months for existing tenants. If you face an unexpected rent hike, always check your rental agreement and contact the landlord or agent if the increase seems unjustified.

When Can Your Landlord Increase Rent?

Rent increases are subject to a 12-month minimum interval. Tenants must receive written notice of at least eight weeks for any rent changes. If you believe a rent increase is excessive, you may apply to the ACT Civil and Administrative Tribunal (ACAT) to dispute the increase.

What Is a Bond?

A rental bond is an amount paid as security against any future tenant breaches, such as damages or unpaid rent. The bond cannot exceed four weeks' rent and must be lodged with the ACT Revenue Office using the Rental Bond Lodgement Form. This deposit protects both the tenant's and landlord's interests throughout the tenancy.

How to Lodge a Bond

Upon signing the lease, tenants typically pay the bond to the landlord or agent, who is responsible for lodging it with the ACT Revenue Office. Check your bond has been lodged by contacting the ACT Revenue Office for confirmation.

Understanding Holding Deposits

A holding deposit is a sum paid to the landlord or agent to reserve a rental property before a formal agreement is signed. This deposit ensures you have first dibs on the property within a specified timeframe. The holding deposit can be applied to the rent or bond once the lease is signed.

What If You Change Your Mind?

If you decide not to proceed with the rental after paying the holding deposit, the landlord may retain a portion to cover any loss of rent due to your withdrawal. However, if the landlord withdraws, your deposit must be fully refunded.

FAQ Section

1. What should I do if my rent is increased unfairly? If a rent increase seems unjustified, you can appeal to the ACT Civil and Administrative Tribunal (ACAT) for assessment.
2. How can I ensure my rental bond is lodged correctly? Confirm with your landlord or directly contact the ACT Revenue Office to verify your bond’s lodgement.
3. Is a holding deposit refundable? The refundability of a holding deposit depends on the landlord's withdrawal or your decision not to proceed with the rental.

How To Section

1. How to dispute an excessive rent increase in the ACT
   1. Review the rent increase notice to verify compliance with rules.
   2. Submit an application to ACAT with relevant evidence of excessive increase.
2. How to lodge a rental bond in the ACT
   1. Complete the Rental Bond Lodgement Form from the ACT Revenue Office.
   2. Submit the form alongside your bond to ensure official lodging.

Key Takeaways

• Rent can only be increased once every 12 months with proper notice.
• Rental bonds must be lodged with the ACT Revenue Office.
• Holding deposits secure your rental choice but know the refund conditions.

Need Help? Resources for Renters

• ACT Revenue Office
• ACT Civil and Administrative Tribunal (ACAT)
• Tenants’ Union ACT

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1. Residential Tenancies Act 1997: legislation.act.gov.au
2. ACT Civil and Administrative Tribunal: acat.act.gov.au
3. ACT Revenue Office: accesscanberra.act.gov.au

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