How to Get your Full Bond Back
This friendly guide offers Sydney renters essential tips to navigate the bond refund process, helping them avoid common pitfalls and secure their full deposit back.
by The Neat Team
Spend a day browsing Reddit and you’ll come across countless posts from Sydney renters missing out on their full bond refunds. If you find yourself in a similar position, the worst-case scenario could result in losing up to four weeks’ rent — the maximum deposit paid when a tenant first moves in.
Lodged directly with NSW Fair Trading through the Rental Bonds Online (RBO) service, the bond acts as security for the landlord in case tenants don’t uphold their end of the tenancy agreement. This might include issues like unpaid rent, personal items left behind, or damage that exceeds “fair wear and tear”. However, there have been instances where real estate agents or landlords make claims that are unwarranted or unfair, hoping to take advantage of tenants who are new to renting or unaware of their rights.
We’re here to help tenants avoid these situations altogether by offering a comprehensive guide on how to secure a full bond refund.
Be Thorough with Your Initial Condition Report
Being thorough in your initial condition report is essential, as it serves as one of the most crucial pieces of evidence for securing your rental bond refund. This first step creates a solid foundation for safeguarding your bond at the end of your tenancy agreement.
Document every last detail
Although it may feel overwhelming initially, if you systematically go through it line by line, you’ll be able to navigate the property inspection successfully. Take your time to inspect each room, fixture, and appliance in the property, and accurately note any pre-existing damage or wear.
Take photos or video recordings
While your real estate agent may provide photographs or video recordings for the report, it’s important to supplement these with your own versions. In cases of disputes, strong photographic evidence offers visual insight that is difficult to dispute between parties. Ensuring that your photos are dated, clear, and cover all aspects of the property – particularly any areas of concern – will strengthen your claim.
Maintain the Property Throughout Your Tenancy
Keep the property “reasonably” clean
Part of your responsibilities as a tenant is to keep the property “reasonably” clean. This is something a property manager will typically check during routine inspections, which can occur up to four times within a 12-month period.
Along with this, tenants are also responsible for minor maintenance such as:
- replacing light bulbs
- cleaning windows
- dusting
- removing cobwebs
- garden maintenance
Inform the landlord of any damage immediately
Even if you make every effort to maintain the property in a “reasonably” clean condition, damage can still occur. When this happens, be sure to inform the landlord of any damage immediately. By flagging the issue through written communication, you create an official record of your effort to prevent any further damage.
Examples of “damage” include:
- Curtains Missing or torn curtains.
- Carpet Stains or burn marks on carpets.
- Floors Deep scratches or gouges in floors.
- Paint Unapproved or poorly done DIY paint jobs.
This should not be confused with “fair wear and tear”, which describes the natural deterioration of a property over time. Landlords cannot claim bond money for these cases as damage. Damage surpasses normal wear and is usually the result of neglect or misuse.
Examples of “fair wear and tear” include:
- Curtains Faded curtains or frayed cords.
- Carpet Furniture indentations and general traffic marks.
- Floors Light scratches on wooden floors.
- Paint Faded or minor chipped paint near high-use areas like light switches.
Perform a thorough end of lease clean
Another condition of the tenancy agreement is to leave the property in a condition as close as possible to its state at the beginning of the tenancy. One way to achieve this is by performing what is known as an “end of lease clean”. It involves following a detailed list that outlines all the areas that need to be cleaned throughout the property. An example of this can be found in Ray White Inner West’s vacating guide, which includes a checklist in their article “How To Get Your Bond Back“.
Clean thoroughly, focusing particularly on high-traffic areas such as the kitchen, bathrooms, and floors. If you’re short on time and unable to carry out a thorough clean yourself, This is Neat Cleaning offers professional end of lease cleaning services for suburbs throughout Sydney.
Claim your Bond Refund
You don’t need to be a legal expert to claim your rental bond refund, but being well-prepared and understanding the bond claim process can help. The Tenant’s Union of New South Wales provides a comprehensive collection of guides and factsheets designed to assist tenants in securing their bond refund. These resources cover important topics such as understanding your rights, navigating the bond claim process, handling disputes, and ensuring the property meets required standards at the end of the tenancy.
Ending your tenancy
When your tenancy agreement ends, you’ll need to submit a bond refund request to retrieve the deposit. Whoever submits the claim first starts a two-week period for the landlord to either accept or dispute the amount. To avoid delays or disputes, it’s best to lodge your claim as soon as you return the keys. Before submitting the claim, you must do the following:
- Pay rent through the end of your notice period.
- Clean the property to its original condition.
- Repair any damage beyond normal wear and tear.
- Remove all personal belongings.
- Sign off on condition report with landlord.
- Return all keys and items provided at move-in.
Insider’s Advice: Submit your bond refund request first
Submitting a Bond Claim
- Attend the final inspection When you decide to move out, the landlord or agent is required to invite you to a final inspection, during which they will complete the outgoing condition report. While your attendance is not mandatory, it is a good idea to be present to ensure the report is filled out accurately and fairly.
- Sign off on condition report If you are satisfied with the inspection results and agree with the findings, you may sign off on the condition report. Should any disputes arise, it’s advisable to address the necessary actions with the agent promptly. If that isn’t possible, be sure to document the disputed issue while still having access to the property.
- Lodge your bond claim At the end of your inspection, the agent or landlord will determine your bond refund. You don’t have to wait for the landlord to release the bond. If you submitted your bond online initially and have completed all necessary steps after ending your tenancy, you can claim your full bond directly through Rental Bonds Online.
Alternatively, if the landlord or agent submits a claim, you will receive a Notice of Claim via email. At that point, you can either agree to the amount, notify Fair Trading within 14 days that you intend to dispute the amount by applying for a hearing with NCAT, or take no action. If you choose not to respond, the bond will be paid out according to the landlord’s claim after 14 days.
Preparing for an NCAT tribunal hearing
Unfortunately, disputes regarding rental bond refunds are not uncommon, with the final resolution decided at an NSW Civil and Administrative Tribunal (NCAT) tribunal hearing.
- Apply to tribunal If a resolution cannot be reached, you must file an application with the NSW Civil and Administrative Tribunal (NCAT) within 14 days of receiving the notice and inform Fair Trading in writing of their action. The Tribunal will then determine how the bond will be disbursed.
- Lodge a complaint In addition to the tribunal, if your agent or landlord claims against the bond without supplying evidence to support the claim, they are violating the Residential Tenancies Act 2010. You should report this by lodging a complaint with NSW Fair Trading to assess their actions.
- Freeze the bond claim Tenants should also request a freeze on the bond payout by contacting NSW Fair Trading, ensuring that the bond isn’t automatically paid out while the dispute is ongoing. This can be done through Rental Bonds Online before the “due for payment” date.
- Present your case If you cannot resolve a dispute with your landlord and an NCAT tribunal hearing is approaching, you can seek advice from your local Tenants Advice and Advocacy Service.
The Tribunal is established to consider both sides in tenancy disputes, including disagreements regarding bond refunds. Tenants can approach the Tribunal even if the bond has already been paid out, as long as it is within six months of the payout. Landlords can also take their case to the Tribunal within the same time frame.
Eastern Area Tenants Service (EATS) Resources
In anticipation of your tribunal appearance, it is crucial to prepare effectively to advocate for your case. The Eastern Area Tenants Service (EATS) offers resources, including specific fact sheets that outline the types of damage your landlord might attempt to claim against.
They have done significant work by citing established cases that you can reference in relation to your specific bond claim. This includes everything from depreciation, fair wear and tear, to very specific examples of damage such as kitchen benchtops, blinds and curtains, or floor finishes that you may not be liable for.
Fair wear and tear | Beyond fair wear and tear |
---|---|
Acevska v Foss [2010] NSWCTTT 541: pavers that were stained and dirty from umbrellas or pot plants were fair wear and tear. | Perry v Long [2013] NSWCTTT 579: scratches and stains left by cat urine on skirting boards is not fair wear and tear. |
Kent v Cheng & Shiu [2004] NSWCTTT 520: chipping of floor tiles is fair wear and tear in the absence of evidence of malicious or negligent conduct by tenants that could cause such chips. | Murphy v Woods (Tenancy) [2010] NSWCTTT 609: chips on tiles in kitchen, dining room and laundry caused by dropping cutlery and kids dropping things is beyond fair wear and tear. |
Barrera v Meyer [2003] NSWCTTT 57: minor stains from oil leaking from car is fair wear and tear.It is to be expected that there may be some marks from parking the car in the designated parking area. | Linke v Hazebroek [2004] NSWCTTT 608: nails, screws, staples into timber architraves, skirtings and other parts of the house without consent of the landlord is beyond fair wear and tear. |
Lehane v Bryant [2005] NSWCTTT 636: staining on the deck from pot plants is beyond fair wear and tear and landlord is to be compensated for loss. |
Examples of “fair wear and tear” cases provided by the Eastern Area Tenants Service.
In summary, to ensure a full rental bond refund, it’s essential to maintain detailed documentation of the property’s condition and promote open communication with your landlord. If disputes arise, understanding your rights as a tenant will help in defending a claim during tribunal and significantly increase your chances of receiving a full bond refund.
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