Rental bonds are a significant amount of money, so when it’s time to move on, you understandably want to make sure you get it back.
However, the latest figures show 38% of NSW renters lose some of their bond, with this typically amounting to two weeks’ worth of rent. Whether you’re preparing to move into a rental property or have comfortably laid down roots, the first step to ensuring you get your bond back is understanding exactly why it may be withheld.
Why rental bonds are withheld
According to Fair Trading NSW, the main reasons rental bonds aren’t returned in full are:
- Unpaid rent. Unpaid rent or late payments will not only affect how much of your bond is returned, but can also influence your rental history and make it challenging to secure future rental properties.
- Damage that’s beyond fair wear and tear. This is one of the most common reasons rental bonds are withheld and is often the result of tenants not understanding what constitutes wear and tear versus actual damage. More on this below.
- Unpaid water usage charges, provided the landlord requested payment within three months of receiving the bill.
- Breaking the tenancy agreement early. When you sign a fixed-term agreement, you’ve committed to staying for the full term; if you want to move early, there could be costs involved.
- The property was not left reasonably clean. According to the Residential Tenancies Act 2010, tenants are obligated to leave the property in a reasonably clean condition and in the same condition as it was at the start of the tenancy, allowing for fair wear and tear. More on end-of-lease cleaning here.
- The tenant failed to return all keys, meaning locks have to be changed or security devices replaced.
What is ‘fair wear and tear’?
While most of the reasons for withholding rental bonds are fairly straightforward, most disputes at the end of a tenancy are the result of misunderstandings of what constitutes fair wear and tear.
Fair wear and tear refers to the deterioration that occurs over time with the use of a property, even though it receives reasonable care and maintenance. Such deterioration could be caused by exposure, time or just by ordinary use. As a tenant, you are not responsible for fair wear and tear. You are only liable for negligent, irresponsible or intentional actions that cause damage to the property. The table below provides examples of each.
| Fair wear and tear – you are not liable | Damage – you are liable |
| Faded curtains or frayed cords | Curtains missing or torn by the tenant’s cat |
| Furniture indentations and traffic marks on the carpet | Stains or burn marks on the carpet |
| Scuffed wooden floors | Badly scratched or gouged wooden floors |
| Faded, chipped or cracked paint | Unapproved paint job |
| Worn kitchen benchtop | Burns or cuts in bench top |
| Loose hinges or handles on doors or windows and worn sliding tracks | Broken glass from one of your children hitting a ball through the window |
| Cracks in the walls from movement | Holes in walls left by tenant removing picture hooks or shelves they had installed |
| Water stain on carpet from rain through leaking roof or bad plumbing | Water stain on carpet caused by overflowing bath or indoor pot plants |
Tip: Before moving in, document the property’s condition with photos or videos on your phone. This evidence can be crucial if any disputes arise when you’re moving out. In addition, if you notice any damage throughout your tenancy, report it to your property manager promptly.
If there’s a disagreement about the rental bond
Sometimes tenants and landlords won’t see eye to eye on what constitutes fair wear and tear. If you are disputing your rental bond being withheld, keeping the below suggestions in mind will help ensure conversations are as productive as possible.
- Don’t let emotion get in the way. Understand your rights and obligations and speak calmly and respectfully at all times. Wherever possible, provide evidence such as photos you took before moving in which show the condition of the property or any pre-existing damage.
- Try to understand exactly what your landlord or your agent is saying, and what they’re asking of you. Don’t be afraid to ask for clarification.
- Be prepared to compromise. You might need to meet your landlord halfway when discussing repairs.
If you and your landlord are unable to come to a resolution, you can submit a claim to get your rental bond back with NSW Fair Trading. If it’s not disputed, you should receive payment within 14 days. If it is, your landlord will have to apply to the NSW Civil and Administrative Tribunal, which will then make a final determination.
If you’d like further clarification about how to ensure you get your rental bond back, reach out to our team using the contact details below.
The information referred to in this article was obtained from publicly accessible sources from Tenants’ Union, NSW Fair Trading and NSW Government. The information provided in this blog post is for general guidance only and should not be taken as personal advice. We do not accept any liability for any errors or omissions.
Prudential Real Estate Campbelltown | (02) 4628 0033 | campbelltown@prudential.com.au
Prudential Real Estate Liverpool | (02) 9822 5999 | liverpool@prudential.com.au
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
