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.
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