Purpose of a Rental Bond a Steep Learning Curve for First-time Renters Leaving the family home and starting out as an independent person is a very exciting time in a young persons’ life. It can also be quite daunting, as for the first time, the individual is responsible for everything. This is nowhere more evident than renting their first property and knowing that, if the rent isn’t paid, there are consequences. Equally daunting for some is the idea of a rental bond. While justifying the rental payment is easy, handing a lump sum to a landlord or rental agency on the proviso that it comes back at the end of a trouble-free tenancy is one of those long-term arrangements that the “instant” generation finds difficult.
Explaining the concept is the first step in getting the first-time tenant to fully understand their obligations for the care of the property. Of course, this also assumes that the landlord or property management Adelaide agency is reputable and will pass the bond on to the relevant authority until the tenant is ready to vacate.
The purpose of a rental bond is to encourage the tenant to look after the property and return it to the landlord in the same condition as it was when the tenant moved in. If there is something amiss with the property at the time of the final inspection, for example, some damage that was not normal wear and tear, but caused by the tenant’s negligence, then the cost of the repairs can be paid to the landlord out of the bond.
If the rent is less than $250 per week, then four weeks rent may be required. However, if the rent is more than $250 week, then the landlord can request a bond equal to six weeks rent. When the tenant pays the bond, the landlord must provide a written receipt within forty eight (48) hours, detailing the date of payment, the amount paid, the tenant’s name and the address of the property for which it was paid. It should be signed by the landlord or their authorised agent.
The security for the tenant is that the bond is held on their behalf by the Tenancies Branch. Within seven days of receipt of the money, it must be lodged with the Tenancies Branch along with the prescribed form, unless the bond is in the possession of a licensed agent, usually someone in real estate Adelaide, in which case they have thirty days to pass it to the Tenancies Branch.
The bond money is usually released at the end of the tenancy, either by joint application by both parties to the tenancy agreement, in which case the bond is released immediately or by application by one party. In this case, the other party must be notified of the application and given the opportunity to dispute the claim. Once this process is understood by the first-time tenant, they should have no problem supplying a rental bond.
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