Understanding Rent, Bond & Holding Deposits Risks in ACT

Renters in the Australian Capital Territory (ACT) need to be aware of potential risks associated with rent, bond, and holding deposits. Understanding these can help you navigate the rental process with confidence and ensure your rights are protected.

Understanding Rent Risks

In the ACT, rents can only be increased once every 12 months for fixed-term agreements unless otherwise included in the lease. The Residential Tenancies Act 1997 governs these provisions and ensures that tenants are given adequate notice of rent increases.

What You Should Know

• Notice Period: Landlords must give tenants at least eight weeks' notice before a rent increase.
• Fair Market Rent: If you believe a rent increase is excessive, you can apply to the ACT Civil and Administrative Tribunal (ACAT) for a review.

Bond and Holding Deposit Considerations

The rental bond is a security deposit lodged with the ACT Revenue Office, ensuring the tenant meets the terms of the lease. Holding deposits, however, come with specific challenges.

Key Protections for Renters

• Bond Amount: The maximum bond cannot exceed four weeks' rent.
• Lodgement: Bonds must be lodged with the ACT Revenue Office within two weeks of receipt.
• Holding Deposits: Used to secure a rental property prior to signing a lease, but ensure clear terms as they can be non-refundable if you decide not to proceed.

Dispute Resolution

If disputes arise, renters can approach the Australian Capital Territory's dedicated residential tenancy tribunal.

For rental disagreements such as bond disputes or rent increases, you can contact the ACT Civil and Administrative Tribunal (ACAT), which provides a fair and accessible means to resolve issues.

1. What should I do if I receive a rent increase notice I disagree with? You can apply to ACAT for a review of the rent increase. Make sure to lodge this application within eight weeks of receiving the increase notice.
2. How can I ensure my bond is correctly lodged? Verify with the ACT Revenue Office that your bond is lodged. They will provide a receipt as confirmation, which you should keep safely.
3. What is the process for getting my bond back? Your bond will be refunded after vacating the property, provided there is no claim against it. Use the ACT Bond Refund Form to request a refund.

1. How to challenge a rent increase in ACT
   1. Review the notice to ensure it complies with the ACT's rules for rent increases.
   2. Negotiate directly with your landlord or agent if you believe the increase is unwarranted. Present comparable rents in the area to support your case.
   3. If necessary, apply to ACAT for a formal review. Ensure you do this within the eight-week deadline post notice.

Key Takeaways

• Understand your lease terms and your rights under the Residential Tenancies Act 1997.
• Always ensure deposits and bonds are duly lodged and recorded.
• Utilize ACAT for any unresolved disputes regarding rent, bond, or holding deposits.

Need Help? Resources for Renters

If you require assistance with tenancy issues in the ACT, several resources are available:

• Access Canberra - Provides comprehensive renter guidance and resources.
• Legal Aid ACT - Offers legal advice and assistance for tenants.
• Tenants' Union ACT - Aims to educate and advocate for tenants' rights.

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1. Residential Tenancies Act 1997: Access the full Act here.

2. ACT Revenue Office Bond Lodgement and Refund Forms: Official ACT Rental Bonds Info.

3. Fair Trading Act 1987 (Cth): View the Cth legislation here.

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