In Australia, when renting a property, a rental bond is usually requested. A rental bond is an amount of money the tenant must pay in advance to the landlord. This money is held in trust, and provides some protection to the landlord in the event the tenant damages the property or does not pay the rent.
How much is a rental bond?
Depending on which state of Australia you are renting in, each has their own guidelines as to how much the rental bond is allowed to be. The most common guideline involves multiplying the weekly rental amount by four. So, if you are renting a property for $250 per week, the bond will be $1000. To find out more for your particular state, click here.
What is a pet bond?
A Pet Bond is a separate bond that can be charged on top of your rental bond if you intend to keep a pet in the rental property. Generally it relates to cats and dog, but could be extended to other pets that are capable of carrying parasites. The cost of a pet bond is usually around $260 but can vary from state to state.
What if I can’t afford the rental bond?
At Fair Go Finance we understand that finding such a large sum of money can be difficult. That is why we can provide bond loans that can assist with this cost. Bond loans can be used towards a number of expenses you may experience when moving to a rental property, such as;
- Rental Bond and Pet Bond
- Moving expenses
- Setting up utilities
What should I know about rental bonds?
DOCUMENTATION Make sure you sign an official rental bond document, which will get lodged with the bond, to the relevant state government office or financial institution. You also must ensure you receive a receipt for your bond to prove you have paid it.
RESPONSIBILITIES Know exactly what is expected of you when you are living in the rental property and also when you are leaving the rental property. By understanding rental bonds and being prepared for renting, it can be a wonderful experience and your first step to start saving for your own place.