A bond claim is a formal request by the landlord to retain part or all of the tenant's security deposit (bond) at the end of a tenancy. The claim is made through the state or territory bond authority and must be supported by evidence of damage beyond fair wear and tear, unpaid rent, or other costs the tenant is responsible for under the lease.
The bond is not the landlord's money. It belongs to the tenant until a valid claim is made and agreed upon or determined by a tribunal.
Grounds for a Bond Claim
Common reasons for a bond claim include:
- Property damage: damage beyond fair wear and tear identified in the final inspection
- Unpaid rent: rental arrears at the end of the tenancy
- Cleaning: the property was not returned in a reasonably clean condition
- Missing items: items listed on the inventory or condition report are missing
- Unpaid utility bills: in some states, outstanding bills the tenant is responsible for
The Process
At the end of the tenancy, both parties complete and sign a bond refund form (or equivalent for their state). If they agree on how the bond should be split, the bond authority processes the payment accordingly. If they disagree, either party can apply to the relevant tribunal for a decision.
The tribunal will review the evidence (condition reports, photographs, invoices, and statements from both parties) and make a binding determination about how the bond is distributed.
Building a Strong Claim
A successful bond claim depends on evidence. You need a thorough condition report with photos from the start of the tenancy, a clear final inspection report with photos showing the damage, and ideally quotes or invoices for the cost of repair or cleaning.
Without a detailed initial condition report, it is very difficult to prove that damage occurred during the tenancy rather than before it. For step-by-step guidance, see our blog post on how to handle a bond dispute.
Why It Matters for Landlords
The bond is your financial protection against damage and unpaid rent. Making a successful claim requires preparation that starts at the very beginning of the tenancy, not at the end. Document the property thoroughly before the tenant moves in, and document it again when they move out.
propkt tracks bond details and tenancy records so you have the information you need to support a claim if one becomes necessary. You can also store inspection photos and documents in the document vault.