Understanding Rent, Bond & Holding Deposits in SA

When renting in South Australia, it's crucial to understand the fundamentals of rent, bond, and holding deposits. These financial components are essential parts of the rental process and are governed by specific regulations to protect both landlords and tenants. Familiarize yourself with the Residential Tenancies Act 1995 to ensure smooth renting experiences in South Australia.

Understanding Rent Payments

Rent is the regular payment you make to the landlord for the use of their property. In South Australia, rent is usually paid weekly, fortnightly, or monthly. Ensure that you receive a written rent receipt each time you make a payment, especially if it's made in cash, to maintain good records.

Rent Increases

Your landlord can increase the rent only once every 12 months and must give you at least 60 days' notice in writing. The increase must be reasonable, and if you disagree with the proposed hike, you can seek intervention from the relevant authorities.

Bond and Its Importance

The bond is a security deposit held for the duration of your lease to cover any potential property damage or missed payments. In South Australia, it's typically set at four weeks' rent for unfurnished properties or six weeks for furnished ones.

Lodging the Bond

Your landlord must lodge the bond with Consumer and Business Services (CBS) within two weeks of receiving it. You can later claim it back at the end of the tenancy, assuming all conditions have been met.

Holding Deposits and Their Use

A holding deposit is sometimes required to secure a property before finalizing lease agreements. It's your assurance that the property won't be rented out to someone else while you complete necessary paperwork. Once a formal agreement is signed, this deposit should either be returned to you or used towards your rent or bond.

Key Forms and Legislation

• Residential Tenancies Act 1995 - Regulates the landlord-tenant relationship in South Australia. Learn more.
• Bond Lodgement Form (Form 2) - Used for lodging bonds with CBS. Completing this form ensures your bond is secure with the government authority. Find Form 2 here.

1. What is a holding deposit and how does it work? A holding deposit is a sum paid to secure a rental property while lease negotiations are finalized, ensuring the property isn't rented out to another tenant.
2. How often can my rent be increased in South Australia? Rent can be increased once every 12 months with a mandatory 60 days' written notice.
3. What happens to my bond when I move out? Upon satisfactory vacating of the property, your bond should be returned within 14 days, provided there are no issues.

1. How to lodge a bond in South Australia
   1. Step 1: Complete the Bond Lodgement Form

      Obtain and fill out the Form 2 from CBS. This form requires details of the landlord, tenant, and property.

   2. Step 2: Submit the Form

      Submit the completed form alongside the bond to your landlord. The landlord must lodge it with CBS within two weeks.

Key Takeaways

• Understand your rights and obligations regarding rent, bonds, and deposits.
• Keep track of all rent payments and ensure bonds are lodged with CBS.
• Refer to the Residential Tenancies Act 1995 for comprehensive legal guidelines.

Need Help? Resources for Renters

If you face issues or need guidance, consider reaching out to the following resources:

• SA Housing Authority - Provides resources and support for renting in South Australia.
• South Australian Community Legal Centres - For free legal advice and support.
• Tenants Information and Advisory Service - Offers dedicated support for tenant inquiries.

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