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.
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:
- if a tenant has
caused damage, the cost of repairs to the property to restore it to
substantially the same condition as when the tenant moved in, subject
to fair wear and tear.
- any outstanding
- the cost of
replacing any fuel used by the tenant during the course of the tenancy
which was supplied by the lessor.
- any legal costs
incurred by the lessor for assigning or transferring the tenant's
rights under the tenancy agreement.