Tougher action planned for late lodgement of bonds: Landlords bulletin issue 3 (April 2017)

24 April 2017

Bonds lodgement required within 14 days.

Since 1 December 2016, Consumer Protection has taken a tougher stance where residential tenancy bonds have not been lodged within the required time.  A delay in lodging bond money puts the funds at risk. 

The law states that security bonds must be lodged with the Bond Administrator within 14 days of being received from the tenant/s. 

When a bond is lodged late Consumer Protection seeks to educate parties on the requirements of the law in the first instance. However, if an owner does not take positive steps to comply with the law for future payments, then Consumer Protection will consider if stronger action is warranted.  Anyone with a history of late bond lodgements will be at risk of receiving a $2,000 infringement notice for further late lodgements.  Ultimately, the maximum penalty in the Magistrates Court for a single offence is $20,000.

Table 1 below illustrates the number of security bonds lodged with the Bond Administrator in the first three months of 2017, and which were received outside of the prescribed timeframe (14 days).

* Includes real estate agents, private agents and park operators

Of even greater concern, is that 37% of bonds lodged late by private landlords were lodged more than 30 days late.

Checklist for bond lodgement

To assist you to lodge security bonds correctly and on time we have provided the following checklist:

1. Lodge a current form.  Bonds must be lodged using the Lodgement of Security Bond Money. The easiest way to lodge a bond is to complete the online form, print it, have all parties sign and then email a scanned copy of the form to the Bond Administrator.  If you are not able to email the form you can post it, or lodge in person.  If you post the lodgement form by regular mail, allow for the time that it will take in the post so that it arrives within the 14 days.
2. Use the correct form for the type of action you are making. 
   1. Use a lodgement form to lodge the bond with bond administration,
   2. Joint Application for Disposal of Security Bond if you are retrieving the bond at the end of a tenancy. 
   3. Use a Variation of Security Bond form if you are:
      1. making any alteration to the bond amount because of a change in the amount of rent you charge for the property;
      2. changing ownership of the property;
      3. adding or removing a tenant from the bond;
      4. adding a pet bond; and
      5. lodging an instalment after the initial bond lodgement form and first instalment.

3. Complete all required information including:

• tenant details including email/contact number
• rental property address
• tenancy start date
• your details including postal address email/contact number
• the rent amount
• the bond amount, the pet bond and the total
• the housing authority amount if applicable
• the date you received the payment from the tenant
• the signatures of all parties

If you do not provide all details there may be delays when it is time for the bond to be returned at the end of the tenancy.

Important:  If your tenant is paying the bond by instalments, do not wait until you receive the full amount.  Lodge each instalment within 14 days of it being received.  Use the Lodgement of Security Bond Money form for the first instalment and then a Variation of Security Bond form for subsequent instalments

More information on bonds can be made by email or by phone 1300 853 829.

Further information is available on the Bonds section.