Rental bonds explained: how much, where it goes and how you get it back

A rental bond is a security deposit you pay at the start of a tenancy. If you leave the home in the condition you found it, allowing for normal wear, you get all of it back. If there is damage, unpaid rent or cleaning required beyond the ordinary, the landlord can claim some or all of it.

How much is it?

In most states the maximum bond for an ordinary residential lease is four weeks' rent, and agents usually ask for the maximum. Some states allow more for higher-rent properties or furnished homes. You pay it along with the first fortnight or month of rent before you get the keys.

Where does it go?

The bond does not stay with the agent or the landlord. It must be lodged with the bond authority in your state or territory within a set number of days, and you should receive a lodgement receipt or number. If you do not, ask for it. That number is what you will use to get the bond back at the end.

If money is tight, most states have a bond loan or assistance scheme for eligible renters that lends the bond interest-free and is repaid over time.

The condition report is everything

At the start of the tenancy the agent gives you a condition report describing the state of every room. Go through it carefully, note anything that is marked, worn or broken, take dated photos, and return it within the time allowed. That report is the evidence at the end of the lease, and a scuff you did not record on day one becomes your scuff on the last day.

Getting it back

When you move out, the agent inspects the home against the condition report. If everything matches, both of you sign the bond claim and the money is released to your account, usually within a few days. If the agent wants to claim part of it, they need to tell you what for. You can agree, negotiate or dispute the claim through the bond authority or tenancy tribunal, and it is the landlord who has to show the damage was beyond fair wear and tear.

Three ways renters lose bond money without meaning to

• Not cleaning to the standard in the condition report, especially ovens, blinds and carpets
• Leaving the last fortnight's rent unpaid on the assumption the bond will cover it
• Small unreported damage, such as a cracked tile or a hole from a picture hook, that could have been fixed cheaply during the lease

Treat the bond as your money on loan to the system, keep the paperwork, and it will come back.