Are you thinking about moving out of home for the first time? There is a lot to think about, like rent and rental bonds, electricity and gas and lots more. Here we are going to talk about rental bonds.
What is a Rental Bond and How does it work?
Are you looking at renting a house, unit, townhouse? You will need a rental bond, which is a large amount, generally four times your weekly rent. For example if the weekly rent is $480 your bond will
Bond – $480 x 4 = $1920
2 Weeks in Advance – $480 x 2 = $960
Total to pay = $2880
Most real estate agents would like you to pay the bond and an additional 2 weeks in advance.
A house bond for a rental property is a security deposit that tenants pay to their landlord before moving in. It is typically equivalent to four weeks rent and serves as a financial safety net for landlords in case of unpaid rent or property damage.
Purpose: A rental bond provides financial protection for landlords and covers any cost for which the tenant may be liable at the end of the tenancy, such as damage to the property or outstanding utility charges.
Lodging: The bond is lodged with the relevant authority, ensuring it is protected and available to the tenant or landlord when they leave.
Return: If the tenant has paid all rent, no damage has occurred and the property is clean, the bond is usually returned to the tenant.
Disputes: If there are issues, landlords may withhold money from the bond to cover costs, and tenants can dispute claims through local authorities (in South Australia it is SACAT).
How to help get a bond: options may include saving up, asking for help from family, the Housing Trust, short term loans, non-profit grant programs or commercial bond services.
How to quickly get a bond: if you need a bond quickly options could include selling things to raise funds, getting in touch with relevant services, or getting an advance on your next pay.
– Key Providers include:
- UnitingSA: Offers affordable housing for low to moderate income households, including units and free-standing homes. They manage tenancies and properties, with most housing located in northern and western suburbs of Adelaide. Rent is calculated either as a percentage of household income (social housing) or market rental prices (affordable housing). UnitingSA also focuses on community-building through shared spaces and sustainable building designs.
- Believe Housing Australia: Provides a range of housing options, including Specialist Disability Accommodation, supporting tenants from crisis to independence. The operate across metropolitan and regional South Australia and are a Tier 1 nationally accredited Community Housing Provider.
Rental affordability: A lot of real estate agents and the SA Housing Trust will want to know how much you can afford and won’t offer you a lease or a bond guarantee if they think you can’t meet the repayments. Currently South Australia does not have enough houses available to rent for the number of people that want a house, which means that property prices are going up and affordability is getting harder to meet. Some ideas to increase your chances of getting a rental include considering living with other people (for example in a share house), increasing your earnings (by taking on more hours, finding out if there is a Centrelink payment you qualify for) or moving to less popular areas that have more affordable rent. The downside of this may mean that your transport costs increase, so check carefully and do a full budget before entering into a contract for a rental property.
What to do at the end of your lease: it is important that you stay on top of things so that you don’t get caught off guard when you move out. To make sure that you don’t fall behind in rent, when you pay the 2 weeks advance, keep it as 2 weeks in advance so that you don’t fall behind the due date. If you can, try to pay 4 weeks in advance so that when you go to leave you have 2 weeks break, so you can clean up without having to worry with the stress of paying rent for 2 places at once. It is your responsibility to return the house in the same condition that you got it in – including the gardens. This means that you need to clean the house, tidy the garden and repair any damage. It is important to check your lease to comply with any special conditions that apply to your house – for example, pruning of fruit trees. Once your rental has been returned to the condition you received it in, and you are up to date with your payment the bond will be released. If there has been any damage or any additional cleaning required some of your bond may be retained to cover the cost of returning the property to the original condition. The SA Government has a website to help you get your bond back, or for information about what to do if you have a disagreement about the condition of your property.
Where to get more information: For more information on rental bonds go to: https://www.sa.gov.au/topics/housing/renting-and-letting/residential-bonds