The bond is the money a tenant pays at the start of a lease as security against unpaid rent or damage. In NSW it's held by the government, not the landlord or the agent, which keeps it safe for both sides.
How much is it?
For most rentals the bond is no more than four weeks' rent. It's paid at the start of the tenancy along with the first rent payment.
Where it goes
The agent or landlord must lodge it with NSW Fair Trading, usually through Rental Bonds Online, within ten working days. The tenant receives confirmation directly from Fair Trading. Tenants can also pay it themselves online.
Getting it back
At the end of the lease, the home is inspected and compared with the condition report from the start of the tenancy. If the home is clean and in the same condition, apart from fair wear and tear, and the rent is paid up, the bond is refunded in full. Either side can start the claim online, and when both agree, Fair Trading pays it out quickly.
If there's a disagreement
If the landlord wants to keep part of the bond, for example for cleaning, damage beyond fair wear and tear, or unpaid rent, and the tenant doesn't agree, either side can apply to the NSW Civil and Administrative Tribunal to decide. Most disagreements are avoided by a careful condition report with photos at the start, and by talking before anyone lodges a claim.
Fair wear and tear
Things that happen through normal use over time: worn carpet in walkways, faded curtains, small marks around light switches. A landlord can't claim for these. Holes in walls, burns, pet damage and a garden left to die are different, and can be claimed.
