All about Bond and Upfront Rental Payment

If you are looking to rent or lease out property, you must have a rudimentary idea about rental bonds and their importance in relation to tenancy in Australia. Having adequate knowledge will keep you prepared for different situations or confusions that arise regarding the legality of bonds, their repayment, bond amount and such. You will also be better equipped to deal with Adelaide mortgages property management agents regarding rental bonds, if you are dealing through them.

All about Rental Bonds

Rental bonds are a kind of pecuniary protection for the landlord against any kind of breach of terms or damage to property caused by the tenant. It is the amount of money that a tenant pays at the beginning of the tenancy term. It is not a part of the rental amount and refers to the money that is paid in addition to regular rent.

Are Rental Bonds Compulsory

It may not be legally binding in all states of Australia for a prospective tenant to pay for rental bonds. However, real estate agents or landlords insist on such a bond as a security for the safety of the premises. The landlord may have to claim the entire bond amount or part of it to pay for any repair to the property, compensation for any breach of terms by the tenant or against unpaid rent.

What happens after the Rental Bond is Taken?

Rental bonds can be taken only after a prospective tenant has been handed a copy of the rental agreement. The amount that is deposited as the rental bond must be also be clearly mentioned on the rental papers. Both the lessee and the lessor must sign copies of the rental agreement once the bond amount is clearly indicated.

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