How Much Bond Should You Take?
July 05, 2018 at 4:18 PM
The maximum bond that can be requested is 4 weeks rent. The average bond a privately managed property requests is 1-2 weeks, compared to 3-4 for a managed property. All bonds must be lodged with the Department of Building and Housing where they are held in trust until the end of the tenancy.
There are some theories that say charging a lower bonds opens up the net for more tenants in terms of affordability. Another theory, and one common amongst property managers, is that the higher the bond, the higher the bar in terms of the prospective tenant being able to afford their rent!
If you’re a landlord and you take a bond, you must lodge it with Tenancy Services within 23 working days of receiving it. This applies whether you send the bond in full or in instalments. You must also give the tenant a receipt. If the bond is for a boarding house tenancy and is no more than 1 week’s rent, you don’t have to lodge it with Tenancy Services. It’s important to fill out forms correctly or we won’t be able to lodge your bond. It may also cause delays when you apply for a refund.
Regardless of which theory you abide by, the reality is that the higher the bond, means the more money at your disposal should a tenancy turn sour.