As a self-managed landlord in New South Wales (NSW), one of your responsibilities is collecting and lodging a rental bond from your new tenant. A rental bond acts as a form of security and provides financial protection for landlords in case of any rent arrears, property damage, or breaches of the tenancy agreement. Here’s a step-by-step guide on how to collect and lodge a tenant’s rental bond in NSW:
- Collecting the Rental Bond:
- Determine the maximum amount of bond you can request from your tenant. In NSW, the Residential Tenancies Act 2010 sets a limit of up to four weeks’ rent for unfurnished properties.
- Provide your tenant with a completed Rental Bond Lodgement form, which can be obtained from the NSW Fair Trading website (you need to login to Rental Bonds Online to download the form) or your local Service NSW centre.
- Collect the bond amount from your tenant in the form of a bank cheque, money order, or electronic transfer. Avoid accepting cash for security and tracking purposes.
- Completing the Rental Bond Lodgement:
- Fill out the Rental Bond Lodgement form accurately. Include details such as the tenant’s full name, address, and contact information, along with your own information as the landlord.
- Ensure that both you (as the landlord) and the tenant sign the form. This acknowledges that the bond has been collected and will be lodged with the appropriate authority.
- Lodging the Rental Bond:
- Submit the completed Rental Bond Lodgement form and the bond payment to the Rental Bond Board. This can be done online through the Rental Bonds Online (RBO) system, which provides a secure and convenient way to lodge and manage rental bonds.
- If you prefer to lodge the bond in person, visit your local Service NSW Centre and submit the completed form and payment there.
- Provide Receipt and Bond Number:
- Once the bond is lodged, you will receive a receipt and a unique bond number. File these documents in Kavaho, as they serve as proof of the bond lodgement.
- Within 14 days of receiving the bond, provide the tenant with a copy of the receipt and bond number. This ensures transparency and helps maintain a positive landlord-tenant relationship.
Remember, it is essential to follow the correct procedures and comply with NSW tenancy laws when collecting and lodging a rental bond. By doing so, you protect your rights as a landlord and provide your tenant with peace of mind. For further guidance and assistance, you can refer to the NSW Fair Trading website or consult with a tenancy professional.