Landlords need to properly lodge bonds

Department of Building and Housing (DBH) client services manager Jeff Montgomery says, “Bond money does not belong to the landlord and cannot be held in a private bank account. It is the tenant’s money held in trust by the government until the end of the tenancy or a circumstance that enables the landlord to claim the bond”.

Montgomery says some landlords do not realise the importance of bond until it’s too late.

“Every landlord I speak with reiterates how important it is to collect the full bond entitlement. If the tenant causes damage, the landlord might have to make a claim against the bond money for repairs and maintenance.”
 
Montgomery says there is sometimes confusion about how much bond a landlord can request from a tenant.
 
“Landlords can ask for up to the equivalent of four weeks’ rent as a bond. They are not required to ask for a bond, and they can ask for less.”
 
When landlords collect bond from a tenant, they must give the tenant a receipt and forward the payment to the DBH within 23 working days. Landlords must also enclose a bond lodgement form (available on the DBH website: www.dbh.govt) with the bond cheque.
 
“Some landlords are prepared to stagger their receipt of bond money from their tenants. This is fine provided they send the payment with a lodgement form to the Department of Building and Housing within 23 working days,” says Montgomery
 
In addition to collecting a bond, landlords may also collect one or two weeks’ rent payment in advance. This is completely separate from the bond money.
 
“If the rent is to be paid fortnightly, a landlord can ask for two weeks’ rent in advance. If the rent is to be paid weekly, a landlord can only ask for one week in advance.”
 
At the end of the tenancy, the tenant and landlord need to complete a bond refund form. The bond refund form is sent to the landlord after the bond is lodged. The form is also available on the DBH website.