The landlord needs to follow the procedure outlined in each state or territory. This usually consists of depositing the money with the government and giving them notice of the bond.
- Be aware of timelines that are required by different states and territories.
- Generally, landlords are required to keep adequate records of bond and security money paid.
State or Territory Requirements
- The landlord or agent is required to give the rental bond to the Secretary with a notice in the approved form.
- The landlord has 10 working days after the bond is paid to submit it and the agent has 10 working days after the end of the month the bond was paid in to submit it to the Secretary.
- The receiver of the bond has a duty to pay the bond to the RTA.
- They must also give notice of the rental bond.
- They need to fill in a Bond lodgement form which the landlord and tenant must sign and lodge to the RTA within 10 days of receiving it.
- If the bond is paid in instalments, within 10 days of the last instalment being paid, the total bond must be paid to the RTA.
- If the agreement ends before the total bond is paid, the landlord must pay the instalments received and give notice to the RTA.
- If 3 months after the first instalment passes, the landlord needs to pay the current total within 10 days giving notice and start paying the RTA within 10 days after every instalment paid until the total has been paid to the RTA.
- The RTA will then give a separate written receipt of the bond to the lessor and tenant.
- There is no entitlement to interest on the bond.
The landlord is to deposit the bond to the Rental Tenancies Bond Authority within 10 business days after the bond is received with a completed bond lodgement form.
When the tenant pays the bond to the landlord or agent, the period that ends 2 weeks after the later of either the bond being paid or the tenancy commencing, the bond must be paid to Office of Rental Bonds (Access Canberra). The tenant can also lodge the bond directly with the Office of Rental Bonds.
This must be accompanied by a completed bond lodgement form. If the tenant lodges the bond directly this must also be accompanied with the form regardless with whether the landlord signs it.
The person who receives a bond must lodge it with the Consumer Business Services (CBS) within 2 weeks of receiving it for landlords and 4 weeks for registered agents. There is also a bond lodgement form to be completed. This can be done electronically using Residential Bonds Online (RBO).
The landlord or the agent who receives a security bond paid in relation to a tenancy agreement shall pay the amount of the bond to the bond administrator as soon as possible within 14 days after receiving the bond. This can be made directly or by lodging the money with an agent of the bond administrator.
A property agent who receives a security deposit from a tenant must deposit that money with the specific form to the Authority within 3 working days after receiving.
An owner must not receive a security deposit from or on behalf of a tenant in relation to a residential tenancy agreement. This can be penalised by a fine not exceeding 50 penalty units.
Money paid to a landlord as a security deposit is to be held by the landlord in trust for the tenant. The landlord must pay this money (security deposit) into an ADI (authorised deposit-taking institution) account or a statutory corporation of the Territory or of the Commonwealth.
If the tenant requests it, the landlord must provide details in relation to the security deposit. This includes: the account name, the amount of the security deposit that was paid into the account, whether the account is established under s 50 of the Agents Licensing Act or if not, then the name of the institution where the account is held and the rate of interest.
If the landlord, who holds this money in trust for a tenant, intends to leave the territory for more than 14 days, they must first pay the money to a real estate agent or person approved in writing by the Commissioner. The landlord also needs to notify the tenant of the name of the real estate agent or person. If the landlord returns to the territory they can request the money be returned to them within 14 days.
Snug has taken every effort to ensure this content is accurate and up to date.
These legal guides provide a brief summary and introduction of the laws and regulations affecting renting. They do not cover all cases and might not apply to your specific rental property situation. It is important that you use this information as a guide only and seek independent Legal Advice or consult the Relevant Legislation. Snug does not accept any liability that may arise from the use of this information.