Time to get down to the nitty-gritty financials – the rental bond. So what is it, and how does it work? Are there options if you can’t afford to pay the bond immediately?

What is a rental bond or security bond? 

A rental bond is a sum of money requested from tenants on behalf of owners/agents. The rental bond is financial protection if there’s a lease agreement breach. You typically pay a bond to a landlord or property manager before you move into your new house.

How does the bond work?

The bond requires an official document to be prepared and deposited in an approved ‘bond trust’ managed by each state government or authorised financial institution.

It is your landlord or property manager’s responsibility to lodge the bond lodgement form and money with the relevant state department. Make sure you obtain a receipt for your bond.

The bond amount is specified in your lease document, and the maximum can vary from state to state.

The equivalent of four weeks’ rent is common practice, plus an additional amount in some cases where pets or furnished properties are involved.

You will typically complete a bond lodgement form. The bond money is then lodged into a joint account between you and the landlord, which normally accrues interest for the tenancy term.

Your rental bond will be released at the end of your tenancy, and you may receive a full or partial refund.

Need help paying your rental bond?

Ever moved into a rental property and needed to pay the bond before you received your old bond back? You’re not alone.

A key struggle renters face when moving is coming up with the rental bond and rent in advance. The cost can stretch any budget, especially when you’re still waiting on your bond from your previous home.

RentBond solves the ‘bond gap’ by giving you access to a convenient bond loan of up to $10,000, completely free for 21 days. *T&Cs apply.

With RentBond, you can cover your bond, two weeks’ rent in advance and any moving costs to take the hassle out of moving between rentals.

  • A convenient way to borrow the cost of your bond, removalists, cleaning and any other moving costs
  • Apply online and get your funds the next business day
  • It’s free when you repay within 21 days
  • Help your cash flow with flexible payments
  • Peace of mind. Renters rate RentBond an ‘excellent’ 4.7 stars on Trustpilot

See what renters have to say about RentBond on Trustpilot!

Lauren Vardy

Lauren Vardy was the Content Marketing Manager at Rent.com.au between 2015 and 2023. Formerly a journalist at Fairfax Media and Rural Press, Lauren's expertise extends to various media groups in Australia and internationally, including the Esperance Express, Southeast Asia Globe, Colosoul Magazine, The Sunday Times, and more.

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