Property agents and self-managing landlords must register for Rental Bonds Online by 30 January 2017
From 30 January 2017, property agents and self-managing landlords must be registered with Rental Bonds Online (RBO), Fair Trading's easy and secure service to manage bonds online. Agents and landlords must also offer the service to new tenants as the first option for lodgement of their bond. More information is available on the Rental Bonds Online (RBO) changes to residential tenancy laws page on the Fair Trading website.
Information on registering as a user is available on the RBO Property agents and Self-managing landlords pages on the Fair Trading website. For more information on making a bond claim using RBO, go to our Frequently asked questions for self-managing landlords page on the Fair Trading website.
When the tenancy has ended and the tenant owes you money you can make a claim against the tenant's bond.
The main reasons a claim can be made against the bond are:
This is not an exhaustive list. There may be other legitimate reasons for making a claim against the tenant's bond, such as the cost of disposing of goods left behind by the tenant. The claim must relate to a breach of the tenancy agreement by the tenant.
Your tenant is not responsible for fair wear and tear to the premises. Fair wear and tear means the deterioration that occurs over time with the use of the premises even though the premises receive reasonable care and maintenance. Such deterioration could be caused by exposure, time or just by ordinary use. The tenant is only liable for negligent, irresponsible or intentional actions that cause damage to the premises.
These examples may help to explain the difference.
Fair wear and tear
|Faded curtains or frayed cords||Missing curtains or torn by the tenant's cat|
|Furniture indentations and traffic marks on the carpet||Stains or burn marks on the carpet|
|Scuffed wooden floors||Badly scratched or gouged wooden floors|
|Faded, chipped or cracked paint||Unapproved or poor quality paint job|
|Worn kitchen bench top||Burns or cuts in bench top|
|Loose hinges or handles on doors or windows and worn sliding tracks||Broken glass from one of the tenant's children hitting a ball through the window|
|Cracks in the walls from movement||Holes in walls left by tenant removing picture hooks or shelves they had installed|
|Water stain on carpet from rain through leaking roof or bad plumbing||Water stain on carpet caused by overflowing bath or indoor pot plants|
|Paint worn off wall near light switch||damage to paint caused by removing posters stuck with blu tack or sticky tape|
This means, for instance, you can lodge a claim against the bond for the cost of cleaning the carpet if it has been stained or left dirty. You should not lodge a claim if the carpet is clean and unstained, even if the carpet was new or professionally cleaned before the tenant moved in.
If you intend to make a claim for part or all of the bond, you will need to fill out a claim form and lodge it with Fair Trading. The form sets out the different ways it can be lodged. Alternatively, call Fair Trading on 13 32 20.
It is best if you can get the tenant to agree with your claim and sign the form as well. That way, the bond can be paid without delay. If this is not possible, you should lodge the form without the tenant's signature as soon as possible with Fair Trading and send evidence of the claim to the tenant (see below).
Fair Trading will send a notice to the tenant giving them 14 days to either settle the matter with you or contest your claim by applying to the NSW Civil and Administrative Tribunal. That is why it is important that the claim form include the tenant's forwarding address (if known) or other contact details. If they do not apply to the Tribunal the bond will then be paid out as per your claim. If the tenant applies to the Tribunal the bond will be held by Fair Trading until the dispute is settled. You will then need to attend a hearing at the Tribunal and present evidence to back up your claim.
If the tenant lodges a claim for refund first without your signature, Fair Trading will send you a notice advising of the claim. You can either try to resolve it with the tenant or apply to the Tribunal within 14 days if you disagree. Make sure to notify Fair Trading that you have applied to the Tribunal, so that the bond can be held until after the hearing.
If you and the tenant reach a different agreement after one of you has lodged a claim, then a new claim form will need to be lodged with Fair Trading with both your signatures. Otherwise, the first claim lodged will be paid out after 14 days.
Once the bond has been paid out either you or the tenant can still apply to the Tribunal. There is a 6 month time limit to do this.
If you lodge a claim relating to the condition of the premises, without the tenant's signature, within 7 days you must send copies of the following to the tenant. Send the documents to their forwarding address (if known) or the rented premises address:
Copies of these documents also need to be sent to Housing NSW if that Department paid the whole or part of the bond. Failure to provide these documents within the time period required can lead to penalties being imposed, if you do not have a reasonable excuse.
Note: Do not send these documents or anything else except the claim form to Fair Trading.
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