Complications with the bond can arise as tenants move into a property with an existing rental tenancy agreement. This can be where a new tenant moves in and takes over the bond from an outgoing tenant. If there are co-tenants and one tenant moves out the bond will usually need to be negotiated between both parties.
Always ask about how the bond will be dealt with before agreeing to take over a tenancy.
State or Territory Requirements
The remaining co-tenant or co-tenants must, within 14 days of a request by a former co-tenant, pay to the former co-tenant an amount equal to the rental bond paid by the former co-tenant for the residential tenancy agreement.
The remaining co-tenant/s may deduct from that amount any amount owed to them by the former co-tenant for rent or other reasonable costs associated with the property.
The Change of bond contributors form is used when there is a change of bond ownership in an ongoing tenancy.
If a tenant changes during the lease, the landlord or agent, and the tenants must sign a Tenant Transfer form to change ownership of the bond. A copy of the completed form must be given to the tenants and sent to the Residential Tenancies Bond Authority (RTBA) within five days of the new tenant moving in.
The RTBA does not make part-repayments on bonds. Adjustment of contributions to the bond between outgoing and incoming tenants is organised between those parties. The RTBA will only record the name of the new tenant or resident.
A fine may be imposed for not sending a Tenant Transfer form to the RTBA.
If a tenancy terminates in relation to a residential agreement and one or more tenants under that agreement continue to want to lease the property under a second agreement, the landlord can only accept a bond in relation to the second agreement if the bond under the first agreement is applied to be released.
All tenants are responsible for the bond and need to sort out the bond between co-tenants. A landlord can update details of a bond lodged through Rental Bonds Online or with the required documents through the Consumer and Business Services. Disputes can be resolved using mediation or in a Magistrates Court.
All co-tenants are responsible for the single Security Bond paid to the Bond Administrator. Co-tenants must negotiate bond disputes amongst themselves to resolve issues.
When there is a change in tenancy under a continuing agreement, the new, remaining and outgoing tenants must agree and fill out the required form to lodge with the Bond Administrator. The new tenant takes over the outgoing tenant’s interest in the Security Bond. New and outgoing tenants need to exchange money between themselves to according to the agreement. There is a variation of security bond form for this purpose.
When the bond is first paid to the agent and filed with the Authority, all co-tenants must sign the forms and deposit a single amount. Co-tenants moving in or out will need to fill out a Tenant Transfer Form. New tenants should lodge the form with the Authority through Service Tasmania and pay their bond to the outgoing tenant.
Claims for a refund of a security deposit by a tenant must be returned by the landlord to that co-tenant if authorised in writing by another co-tenant under the same tenancy agreement.
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.