NSW bonds soon to be transferrable

Published on Oct 25, 2018 | by Cameron McKillop

NSW bonds soon to be transferrable
NSW renters will soon no longer face the prospect of being out of pocket when they move house.

The state government is set to introduce changes to parliament this month which will allow tenants to transfer their bond from one rental property to another.

It can take up to several weeks before existing bonds are released, leaving renters thousands of dollars out of pocket in between tenancies.

Moving house is stressful enough, and there are often many unexpected costs involved that you don’t realise until you’re neck-deep in moving boxes. Having to pay out for a new bond while waiting for the other one to be released causes significant financial stress for families, especially when they can cost thousands of dollars.

The specifics of how a deduction would be made has not yet been decided. Should a landlord want to claim money from the bond, the government is considering Choice’s proposal of a provisional certificate.

Provided by the Rental Bond Board, the certificate would allow the entire bond amount to be transferred from one property to another. The damage amount would need to be paid by the tenant to the landlord separately and within a short time frame. If a payment was not made, it would be considered a breach, similar to non-payment of a bond.

Since January last year, agents and landlords have been required to offer tenants rental bonds online as the first option to lodge their bond, but it is not mandatory for them to use it. The new provision will apply to all bonds regardless of how they are lodged.

Cameron McKillop


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