How Long Does it Take to Get Your Bond Back?

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A resident of New South Wales will probably know all about bond payments specific to the state. However, if you are planning to move to a suburb in NSW for the first time, there is some important information to learn about the security deposit including how and when you can claim your bond back at the end of the tenancy agreement.

Having knowledge of rental bonds will ensure that you are not only aware of how the process works, but also comfortable with paying a stipulated amount of money that you will not get back until after your tenancy comes to an end.

What is a Rental Bond?

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In simple terms, a rental bond is a specific amount of money that a tenant must pay to the landlord at the beginning of a tenancy. This bond payment will be mentioned in the tenancy agreement and a receipt will be given to you upon making payment. Although bonds are not mandatory when leasing out a home, landlords have the right to ask for one as a security deposit to protect themselves should the tenant violate any terms and conditions of their agreement.

In simple terms, a rental bond is a specific amount of money that a tenant must pay to the landlord at the beginning of a tenancy. This bond payment will be mentioned in the tenancy agreement and a receipt will be given to you upon making payment. Although bonds are not mandatory when leasing out a home, landlords have the right to ask for one as a security deposit to protect themselves should the tenant violate any terms and conditions of their agreement.

Once paid to the landlord or agent (if you are dealing with one), the bond will be lodged with NSW Fair Trading via the rental bonds online portal or through a Bond Lodgement form that states the amount you have paid and other details. Typically, the bond is equivalent to 4 weeks rent or lesser; the bond to be paid cannot exceed this rent duration.

 

Renting a home ending a lease and bond claims

 

How to Get Your Bond Back

As per regulations from the Tenants’ Union for claiming the bond back at the end of your tenancy, NSW Fair Trading oversees the entire process to ensure that all claims conform to strict guidelines. There are a couple of factors that may affect the length of the process, however, the standard course of action is as follows:

  1. Avail the ‘Claim for Refund of Bond Money’ form online or collect a physical copy from NSW Fair Trading
  2. Fill in the required fields
  3. Along with your signature, have the landlord sign the form
  4. Submit the form to NSW Fair Trading via post, email, or in-person

When to Expect the Bond Back

After a two-week period from the time NSW Fair Trading receives the form, your bond will be returned to you via bank deposit or cheque. There are, however, a few things that may delay the repayment of your bond which are discussed below.

Factors That Affect the Return Date of Your Bond

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  1. A Dispute in Bond Amount to be Returned

If the landlord does not agree with the sum of money to be returned to you, he/she will not sign the ‘Claim for Refund of Bond Money’ form; however, you will still need to submit it after which the landlord will receive a notice from Fair Trading regarding your claim. If not disputed within 14 days, there will be no delay in getting the bond back. On the other hand, a dispute will lead to the involvement of the NSW Civil and Administrative Tribunal who will finalise the bond amount to be returned.

  1. Claims Made by the Landlord

The landlord can make substantiated claims from the bond money to be paid out for any work that was done in the house during your tenancy and/or damage caused to their property. In this situation, you will receive proof of their claims in the form of receipts, invoices, etc; and a condition report if there is any evident damage. A notice will be sent to you from the Tribunal after which you can choose to dispute their claim or agree to it. A dispute will delay the return of your bond or determine whether there will be any money left over from the bond after the claim is made.

  1. Residence Left in a Dirty Condition

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Landlords expect their home to be returned to them in the same condition it was when the tenant(s) moved in. Apart from damage to the property, getting your bond back can also be delayed if the house has not been cleaned up. In fact, some tenancy agreements include the condition of end of lease cleaning to be undertaken by the tenant at the time of vacating the house. Also known as Bond Cleaning, a service offered by cleaning companies, you are more likely to get your bond back faster by ensuring that the house is spotless at the end of your tenancy.

To conclude, there is no definite answer to know how long it will take to get your bond back because it is situational.

Generally, if there are no disputes involved, your bond will be paid back to you at the end of two weeks, or sooner.

It is, however, helpful to speed things along by making sure the house is returned to the owners in a good condition.

Inspect the property for anything that might need repairing and do the needful; hire a move-out cleaning service to get the place thoroughly cleaned from top to bottom, and follow the guidelines set by the Tenants’ Union to claim your bond back the right way.

If you need more help moving , check out our moving out checklist or our guide on the 10 things you should consider when moving out.

 

Adriana Aziz is the operations manager at MaidForYou. With over 6 years of experience managing cleaning operations, she knows all the best hacks when it comes to cleaning residential and commercial buildings. With expert experience in managing house cleaning operations, interior design and logistics. She spends her free time with her family and as a freelance food critic.

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