Rental bonds and signing up for a place
Signing your first rental agreement is an exciting moment, but
make sure you know what you are doing.
What is a rental bond?
A rental bond is a
deposit paid to your new landlord. Depending on which state or
territory you live in, your bond could be 4 weeks rent or more. The
bond is usually lodged with your state or territory fair trading or
consumer affairs office for safekeeping.
Always pay your rent on time otherwise you might be evicted. If
you don't pay your rent, it can affect your rental references and
you won't get all of your bond back.
Your bond acts as a form of security for your landlord, so if
you damage the property or owe rent when you move out, your
landlord may be able to keep some of the money. Make sure you get a
receipt for your bond.
Provided you pay the rent regularly and don't damage the place,
you'll get your bond back when you move out. That's when you'll
need the receipt.
Any time you move into a new place, make sure you do a thorough
condition report. A condition report is a list of any marks, damage
or issues with the property. It will protect you when you leave the
property so you get your full bond back. Make sure you take photos
and comprehensive notes.
If your landlord keeps your bond money without reason after you
move out, contact your local tenants' organisation or consumer
affairs authority immediately. These organisations are listed on
our sorting out rental problems
Help with paying the rental
Some state and territory governments provide interest-free loans
or other forms of assistance to help pay rental bonds.
For more information, or to see if you're eligible, visit the
website for your state or territory:
If you're not eligible for government assistance, you may be
considering borrowing money to cover your rental bond. But, before
you do this, work out how much the loan will cost you in total,
including any interest and any fees or charges.
Work out how much a personal loan will really cost you.
Personal loan calculator
If you decide to take out a loan to cover the bond, ask for a
copy of all the terms and conditions of the loan contract and make
sure you understand them before you sign.
Visit our webpage for more tips on getting the best credit
Check your lease before you sign
A rental agreement (or lease) is a legal contract between you
and the landlord. Once you sign it, it's legally binding. Make sure
you understand your responsibilities and agree with all of its
Before you sign a lease agreement, inspect the property. Take
note of anything that is damaged and tell the real estate agent or
landlord. Take photos of all the rooms and keep them for your
- Don't assume - Get help to understand the
contract. Even if you think you know what is written in the
contract, ask for an example; or ask a question like, 'Just to
clarify, I think this means X. What do you think it means?' Don't
worry about appearing dumb or difficult. It's better to clarify now
rather than later.
- Get a second opinion - You can get help from
your local tenancy union. Don't rely on yourself to read the
contract and find all the problems. Don't sign until you are 100%
sure of the details in the lease. Remember, you can't cancel this
sort of legal contract if you change your mind.
- Check the lease term - Think about whether the
term of the lease suits your circumstances. For example, signing up
for a 12-month lease on a property might sound good but if you need
to move out during that time, you could lose some of your bond and
have to continue paying rent until they find someone else to rent
the property. If the term of the lease doesn't suit you, try to
negotiate a different term or look for other options.
After you sign the lease, you'll be expected to pay your rent on
time, look after the place and cover any damage done to the
property during the time of the lease. However, you are entitled to
fair 'wear and tear' during the term of your lease.
Case study: Jamie's pet problem
Jamie had a pet dog called Minty that had grown up with him.
When Jamie left his parents' home, Minty moved with him.
A few weeks after Jamie moved in, the landlord did an inspection
and found Minty's drinking bowl. Because Jamie hadn't read the
rental agreement, he didn't realise that pets weren't allowed at
his new place. He then had to decide between returning Minty to his
parents' home or finding another place to rent.
Jamie decided to return Minty to his mum and dad's house. He
then read the lease agreement carefully to make sure he understood
all of the conditions of his lease.
Last updated: 22 Mar 2018