The rental bond is a sum of money deposited or paid to the lessor or agent as security against the lessee failing to comply with any terms or conditions of the lease. A premium is different from a bond. The lessee or agent is required to lodge the bond with the office of rental bonds (orb). The lessor can still require a personal guarantee or for the tenant to pay an insurance premium to cover damage or default in rental payments.

The tenant cannot use the bond to "pay out" the remainder of the lease without the consent of the landlord. The tenant cannot use the rental bond to pay the rent for the last weeks of the tenancy. A tenant cannot stop paying the rent a month before the end of the tenancy on the assumption that the bond will cover the rent. The bond can be used to pay for: