Common Questions About Rent, Bond & Holding Deposits

As a renter in New South Wales, understanding the intricacies of rent, bonds, and holding deposits is essential. Navigating through the process can be daunting, whether you're leasing for the first time or an experienced tenant. This article covers frequently asked questions, providing clarity on what to expect and your rights as a tenant.

What is the Difference Between Rent, Bond, and Holding Deposits?

Tenants often confuse the concepts of rent, bond, and holding deposits. Here's a quick breakdown:

• Rent is the regular payment made by a tenant to a landlord for the occupancy of the property.
• Bond is a security deposit paid at the start of a tenancy to cover damages beyond normal wear and tear at the end of the lease period.
• Holding Deposit is a payment made to reserve the property before the lease commences.

Each of these payments serves a distinct purpose and is governed by New South Wales laws under the Residential Tenancies Act 2010.

How is Rent Managed and Can it be Increased?

Rent payment agreements are crucial, and changes to the rent amount must follow legal protocols:

• Landlords can legally increase rent once during a fixed-term agreement of less than two years or at least once per year in an ongoing lease.
• A minimum of 60 days' written notice is required for any rent increase.

For more on rent increases, refer to the NSW Fair Trading guidelines.

Understanding the Rental Bond Process

The rental bond acts as a security for landlords against any potential damage or breach of the agreement:

• At the start of the tenancy, tenants can be asked to pay up to four weeks' rent as a bond.
• The bond is lodged with the NSW Rental Bond Board.
• Use the Rental Bond Lodgement (Form 1) for lodging bonds.

Dispute Over Bond at Lease End

If there's a disagreement over bond return at the end of the lease, tenants have the option to file a claim or dispute through the NSW Civil and Administrative Tribunal (NCAT).

FAQ Section

1. Can a landlord keep my holding deposit if I change my mind? If you decide not to proceed with the tenancy after paying a holding deposit, the landlord may retain it as compensation.
2. Are rental bonds transferable when I move? No, each new tenancy requires a separate bond lodged with the Rental Bond Board.
3. How long does a landlord have to return my bond? Typically within 14 days, provided there's no dispute over its return.

Need Help? Resources for Renters

If you have questions or need assistance, several organizations can help:

• NSW Fair Trading - For advice on tenant rights and obligations.
• NSW Civil and Administrative Tribunal (NCAT) - For dispute resolution.
• Tenants' Union of NSW - For tenant advocacy and information.

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1. Residential Tenancies Act 2010
2. NSW Fair Trading - Rent Increases
3. Rental Bond Lodgement (Form 1)

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