Hi, I’m Sam Price and today we’re answering the question, “What is a residential bond?”
Essentially a residential bond is the financial security paid by the tenants, for the benefit of the landlord and held by the Residential Tenancies Authority (RTA) for the duration of the lease. The bond, which isn’t essential but highly recommended as a property manager, is paid by the tenants prior to them moving into the property, received by the property manager and then forwarded on to the Residential Tenancies Authority (RTA) and they hold it in trust.
Now, normally it’s equivalent to four weeks rent, so if the rent is $500 a week, the bond would be $2,000. However, if the rent is over $700 a week you can charge any amount of bond which can be negotiated between the tenant and the landlord. So the RTA look after it for the term of the lease. Come to the end of the lease, if both parties are happy that there’s no outstanding issues, a Refund of Bond form is lodged with the RTA and the monies are paid back to the tenants.
However, if there is a dispute, a dispute over monies being owed for rent, for outstanding water invoices, or for damage that hasn’t been made good by the tenants, well then the form is not signed by both parties. In which case, the RTA will hold on to the funds, being held until such time as it can be agreed upon by both parties. The RTA have a service called ‘mediation’ which allows them to discuss with both parties, normally on a conference call – to try to resolve any issues that are outstanding. If the dispute cannot be resolved, it then gets passed on to QCAT who will hear the matter at their tribunal. They hear both sides of the story and they’ll make a ruling at the tribunal which is binding on both parties after that.
So that’s a quick summary of Residential Bonds in Queensland. If you have any other questions, please let me know. I’m Sam Price and I look forward to seeing you at an open soon.
At Templeton Property we go above and beyond to secure the best outcomes for our clients. Discover more about we can assist you by calling us today on 07 3368 1988 or Sam Price directly on 0418 159 993 to discuss your needs.
