Lodging a bond
Information on who holds the security bond during the tenancy
LATEST UPDATE: Read more about the coming changes to the residential tenancy laws from 1 July 2013.
When a tenant pays a bond, the landlord must issue a receipt immediately when the payment is received.
Where a bond relates to a residential tenancy agreement the receipt must include the:
- name of the person who paid;
- amount paid;
- date on which it is paid; and
- address of the rental premises.
Where a bond relates to a residential parks long-stay tenancy agreement the receipt must include the:
- name of the tenant;
- amount paid;
- date on which it is paid;
- particulars of the agreed premises; and
- amount of the pet bond if a pet bond is paid.
Within 14 days, the landlord must put the bond into a 'Tenancy Bond Account' with the State Government's Bond Administrator (a section of the Department of Commerce), or an authorised financial institution (bank, building society, credit union).
If a real estate agent is handling the property, the agent should deposit the bond as soon as possible into a 'REBA Tenancy Bond Trust Account' held with a financial institution such as a bank, or into an individual tenancy bond account held by the Bond Administrator. These accounts are joint accounts in the names of all parties to the tenancy.
Under the Residential Tenancies Act 1987 and the Residential Parks (Long-stay Tenants) Act 2006 while there is no prescribed form for lodgement of security bond money. It is suggested that landlords use a Lodgement of Security Bond Money as each Act requires a record of payment be provided to the tenant following lodgement.
If you do not use the suggested lodgement form please be aware that Form 1 is a prescribed form and must contain certain information as prescribed by the Residential Tenancies Act 1987.
If lodging a bond with a financial institution, they may have their own version of this form. It is important in situations where there are two or more tenants that the names and signatures of each tenant is on the lodgement form. Otherwise a tenant may find his or her share of the bond can be disposed of without their agreement.
If an owner has more than one rental property, separate bond accounts need to be opened for each tenancy.
Record of payment
The landlord must keep a record of the bond payment, which includes the date, amount, name and number of the account into which the amount was paid and the tenant must be given a copy of the lodgement form. Form 1 Record of Payment of Security Bond is a prescribed form in Schedule 4 of the Residential Tenancies Regulations 1989. The Department has combined Form 1 Record of Payment of Security Bond with its own Form 8 Lodgement of Security Bond Money for ease of use, however financial institutions may have their own version of this form.
If the Bond Administrator holds the bond, then the tenant will receive a record of the payment directly from the Department. If the bond is held in a financial institution, the landlord should give the tenant a copy of the lodgement form as the record of payment required under the legislation.
It is an offence if the bond is not paid to the Bond Administrator or a financial institution within 14 days of the person’s receipt of the bond, or in the case of a real estate agent as soon as practicable after the agent’s receipt of the bond.
Lodging bonds with the Bond Administrator
When lodging a bond with the Bond Administrator the Department suggests landlords use a Combined Form 1 and 8 (Record of Payment of Security Bond/Lodgement of Security Bond Money).
The publication, Bond administration - A guide [PDF 112kb], provides useful information to property owners, real estate agents and operators of residential parks who want to lodge tenants' security bonds with the Department of Commerce's Bond Administrator.