Being a landlord: the bond and the condition report

Victoria: the bond

Victoria’s rules call the landlord the rental provider and the tenant the renter.

• Where it goes. The bond is paid to the Residential Tenancies Bond Authority (RTBA) and held in trust until the end of the rental agreement.
• Who lodges it. A private rental provider, a property manager or a real estate agent starts the lodgement on the RTBA website; renters can’t start it, but every renter must review and accept it before it is finalised.
• How fast. A rental provider who receives the bond from the renter must give it to the RTBA, with the completed bond lodgment form, within 10 business days of receiving it, under section 406 of the Residential Tenancies Act 1997 (Vic). A renter can choose instead to pay the RTBA directly, by telling the rental provider in writing before the rental provider submits the bond lodgement.
• How much. In most cases no more than one month’s rent. A higher bond is allowed only when the weekly rent is more than $900, or when VCAT has set a higher bond for the property.
• What it is not. The bond and rent are separate payments, and the bond can’t be used to pay rent.

Victoria: the condition report

Where a bond has been paid, the rental provider must fill in a condition report and hand the renter a copy before move-in. Consumer Affairs Victoria sets out how:

1. Before the renter moves in

   The rental provider or agent prepares the report on the official condition report template, signs it, and gives the renter 2 copies, or 1 electronic copy.

2. Within 5 business days of moving in

   The renter checks it, adds their own comments where it is wrong, and returns a signed copy.

3. Within 30 days of the start

   If either side thinks the report is wrong or incomplete, either can apply to VCAT to decide.

4. Within 10 days of the end

   The rental provider or agent completes the exit condition report section, with the renter present or given a reasonable opportunity to be.

A report that notes something needing repair counts as written notice of it to the rental provider; if the repair isn’t done within a reasonable time, the renter can apply to VCAT.

New South Wales: the bond

• Where it goes. The bond is held by NSW Fair Trading as security, and both sides manage or claim it through Rental Bonds Online.
• The online system first. Landlords must be registered with Rental Bonds Online and offer it to new tenants as the first option for lodging the bond; paper forms are also available. A landlord can’t require a tenant to use it, and one who does can be fined $2,200.
• How much. No more than 4 weeks’ rent as a bond, and no more than 2 weeks’ rent in advance.
• Claiming it back. When a landlord starts a claim, the tenant receives a 14-day Notice of Claim; if the claim isn’t made with the tenant’s consent, the landlord has to give the tenant certain information within 7 days. Landlords and agents also complete a mandatory survey on how and why the tenancy ended, within 14 days of the first bond claim.

New South Wales: the condition report

NSW Fair Trading describes the report as evidence of how the property was before the tenant moved in, filled in at the beginning and end of the tenancy.

• The landlord or agent fills it out before the tenant moves in, and gives 2 paper copies or 1 electronic copy before or when the agreement is given to the tenant to sign.
• It should note all damage, including minor damage, and any visible electrical hazards, say whether smoke alarms are installed and when they were last checked, and confirm whether any safety switches are working.
• The tenant returns a completed copy within 7 days of being given possession.
• No new report is needed when the same people renew, or a new co-tenant moves in.
• At the end, it is filled in again, ideally with both sides present, and it can be used as evidence in a dispute about damage or missing items.

If the property is bought with a tenant

When a rental property is sold while renters live in it, Consumer Affairs Victoria says the rental provider on the bond must be updated, through a rental provider transfer with the RTBA started within 5 days. Folio 4 covers the rest of a tenanted purchase.