Bond Claims 101: What owners can and can’t charge for

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When it comes to rental properties, rental bonds are one of the biggest topics of discussion with a lot of confusion about what exactly can be taken from the bond at the end of a rental agreement.

So let’s look at bond claims, including what owners can and can’t charge for when it comes to your rental bond. 

What is a rental bond?

Paid by the renter at the start of a rental agreement, a bond is basically a security deposit.

This security is held in trust and at the end of the rental agreement can be used to cover damage to the property, cleaning, or unpaid rent.

But let’s be clear, while they’re designed to cover losses or damage, they are not a bonus fund for the property owner.

The property manager or owner can only make a claim on your bond under specific circumstances.

What owners can charge for

When it comes to why there might be a claim on a bond at the end of a rental agreement, there are five key reasons, relating to either the payment of rent or returning the property to its prior condition.

Unpaid rent

If you fall behind on your rent and it remains unpaid, the bond can be used to cover rental arrears.

Damage

At the end of a rental agreement, renters should return the property to the condition it was in when they arrived.

Any damage needs to be remedied prior to the exit inspection, or the owner has the right to take the costs of repairing this damage from the bond.

If something is missing from the property, such as fixtures and fittings, the cost of replacing these can also be taken from the bond.

Cleaning

When you vacate a rental property, you are expected to leave it clean, tidy and in the condition it was when you arrived. This includes cleaning windows, walls, cupboards, and floors, and having the carpets cleaned.

If you had pets at the property, there might also be a stipulation that you undertake pest control. If these things aren’t done, or the cleaning isn’t up to par, there may be a claim against the bond for cleaning costs.

Meanwhile, if items have been left behind after you’ve vacated or rubbish needs to be removed from the property, a portion of the bond can be used to cover the cost of removal.

Lawn and garden

The lawn and garden are considered part of the property and these needs to also be left neat and tidy. This includes a final mow of the lawn and ensuring the property is weed free.

Exterior areas such as paths, driveways, patios and decks should also be left clean and tidy.

Miscellaneous

There may also be stipulations in your lease about items that need to be returned in a certain condition. For example, if the property is on tank water, you might need to refill the tanks prior to leaving. Or if the property has gas bottles, these might need to be filled.

If the property has a pool, you might also be required to provide a water sample to indicate the chemicals are balanced, or if there’s equipment such as ride on lawnmower there might be a proviso that this machinery is serviced prior to exit.

What owners can’t charge for

While owners can make a bond claim for damage, rental areas and cleaning, they cannot charge you for general wear and tear, maintenance or property improvements.

Fair wear and tear

Fair wear and tear is basically the aging or deterioration that you would expect to occur at a property simply due to normal use.

For example, over time you would expect carpets to wear in high traffic areas, or blinds to deteriorate from the sun.

Maintenance

If something at the property is broken because of age or lack of maintenance, this can’t be claimed on the bond either.

So for example, if there are appliances at the property that don’t work or a tap that drips, this is a maintenance issue rather than a bond claim.

That said, if something does break at the property or needs fixing it should be reported to the property manager in a timely manner and not left until the end of the agreement.

Property improvements

Owners also cannot make a claim on the bond in order to improve their property.

For example, while they may access the bond to repair a hole in a wall that was not there previously and then repaint that wall, they cannot use the bond to pay for a full repaint of the room in the interests of modernising it.

Tips for minimising disputes

Bond claims are potentially one of the most contentious aspects of renting a property, but there are ways to minimise the likelihood of a bond dispute.

As a renter, ensure you:

Complete the entry condition report – This crucial document itemises the condition of every part of the property when you first move in. Go through it, take pictures, and note any issues before signing it.

Consult the entry condition report – When you vacate the rental, consult that initial report and any photographs, ensuring you have returned the property to its original state.

Repair any damage – If you have inadvertently damaged the property or made alterations, repair them prior to exiting.

Clean thoroughly – Most property management agencies will provide you with an exit checklist of things that need to be cleaned, as well as links to recommended contractors, including cleaning services, carpet cleaners, and pest controllers. 

Read your agreement – Have a quick re-read of our rental agreement prior to vacating just to ensure you have covered off any special conditions relating to things like water tanks, pool servicing or machinery.

How we can help

Our experienced property managers pride themselves on establishing great relationships with both rental occupiers and owners.

We manage every property as if it were our own and you can learn more about our property management services here.

Alternatively, if you are looking to rent a property, you can view the properties we currently have available here.

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