Rental Bonds and their Purpose
Moving into a rental property comes with a certain amount of expense. One of those expenses are rental bonds. A rental bond is a payment made, in addition to any rent in advance, as a sort of insurance against any damage or mistreatment of the rental property. The amount varies, but is usually the equivalent of 4 weeks rent. If the weekly rent is over $700 then there is no limit to the amount of bond that can be asked for. There are of course protective measures in place to ensure the money is not misused. So why are rental bonds asked for?
Rental bonds are not compulsory but are usually asked for as a safeguard for the landlord/homeowner. The lessor or agent must issue a receipt for the rental bond money and lodge it along with a bond lodgement form (form 2) with the RTA. Real estate Logan agents have all the necessary forms to deal with proper handling of bond monies both prior to and after tenancy. So what if a tenant can’t afford to pay a bond? It is possible, if the lessor is agreeable to pay the rental bond money in instalments, or the tenant may be eligible for a bond loan.
The bond acts as a safeguard to the homeowner in a number of ways. If tenants fail to pay rent regularly, do not care for the house or damage the house during their lease period, any repairs or rent arrears can be redeemed from the rental bond monies. Of course there are forms and procedures associated with this and tenants are also protected from unfair decisions being made by the landlord. Renting through a property management Logan agency can make the process a lot less confusing for all. In most cases, the refunding of rental bonds goes smoothly.
If you are moving from one rental property to another, it may be simpler to have bond monies transferred from your prior agreement to the new rental home agreement. This can be done by filling out and lodging a transfer of bond form (form 3). RTA will transfer the money held in trust, to you new lease agreement. This can take a lot of the hassle out of the process of moving rental homes. Rental bond payment doesn’t need to be a huge ordeal. Knowing your options however, can help to lessen any worry about paying out what can sometimes be a substantial amount of money.