Bond – 007

Oh, that’s Security Bond.. not James Bond! (:

Under new legislation Section 29 deals with changes where the Security Bond is concerned.

Under legislation prior to July 1, 2013 a tenant may have been required to pay a higher bond because the property was the owner’s principal place of residence. This is no longer permitted under the new legislation.

A bond is now limited to the equilavent of 4 weeks rent, with the only exceptions being a pet bond or where the weekly rent exceeds the prescribed amount of $1200.00

If a bond is taken under the old legislation, the difference is not required to be returned to the tenant until the lease is renewed (after July 1). If the lease is renewed after July 1, then the difference between the prescribed 4 weeks rent and the amount they acutally paid will have to be returned to the tenant.
All bonds are now required to be deposited to the Bond Administrator (or else!), this applies to Agents as well as private landlords.

Increasing the Bond when there has been a rent increase may now be allowed every 6 months instead of the previous legislations increment of 12 months.

Bonds must be lodged with the Bond Administrator as soon as possible but no later than 14 days from receipt of payment. The bond must be lodged using the Liodgement of Security Bond Money form approved by the Minister for Commerce and available on the Department of Commerce Website.

Pet Bonds

In the past a pet bond only applied to a dog or a cat. Now if the tenant is permitted to keep on the premises any pet capable of carring parasites that can affect humans, a pet bond of $260.00 may be used to meet the costs of any fumigation of the premises that may be required on the termination of the tenancy.

The new legislation clarifies that a pet does NOT include a Guide Dog. If the tenant keeps a guide dog at the premises, fumigation expenses, if required, must be taken from the security bond or recouped from the tenant.

More information is available from the Department of Commerce website.