A bond is a security deposit that a tenant pays at the beginning of a tenancy. It acts as financial protection for the landlord in case the tenant damages the property, leaves it unclean, or owes unpaid rent at the end of the lease. In most Australian states, the bond is equivalent to four weeks' rent for unfurnished properties and six weeks' rent for furnished properties.
The bond is not held by the landlord. It must be lodged with the relevant state or territory tenancy authority, such as the Rental Bond Board in NSW, the Residential Tenancies Bond Authority in Victoria, or the RTA in Queensland. This protects the tenant's money and ensures an independent process for resolving disputes. See your state guide for specific lodgement requirements and timelines.
How the Bond Works
At the start of the lease, the tenant pays the bond amount. The landlord or property manager lodges it with the bond authority and both parties receive a receipt. At the end of the tenancy, once the final inspection is completed and any issues are resolved, the bond is either returned in full to the tenant, claimed in part or in full by the landlord (for damage or unpaid rent), or split between both parties by agreement.
If there is a dispute about the bond, either party can apply to the relevant tribunal for a ruling. For a step-by-step guide to that process, see our article on how to handle a bond dispute.
Bond Limits
Each state sets a maximum bond amount. For most standard residential tenancies, the cap is four weeks' rent. Charging more than the legal maximum is an offence. Some states allow a higher bond for furnished properties or properties with a weekly rent above a certain threshold.
Why It Matters for Landlords
The bond is your primary financial safety net if a tenancy goes wrong. Documenting the property's condition thoroughly at the start and end of each tenancy, using a detailed condition report with photos, is essential for making a successful bond claim if needed.
propkt tracks bond amounts, lodge dates, and claim status for each tenancy so you always know where things stand.