How The Bond Refund Process Works in ACT: What Tenants Must Know

Nothing is more frustrating than losing your bond at the end of your tenancy. Under the Residential Tenancy Laws in the ACT or Australian Capital Territory, landlords have the right to hold back your security deposit if you breach your rental agreement or return the property in a filthy condition. They use this money to cover cleaning costs, damages and unpaid rent.

Luckily, adhering to your roles and responsibilities as a tenant can help you pass the rental inspection without any disputes or deductions. Apart from paying rent on time, returning the keys and repairing any damage caused by you during your lease (beyond fair wear and tear), ensure you return the property in a reasonably clean condition. It should be in the same state as it was at the start of your lease, i.e spick and span. That’s one of the reasons why tenants hire the top quality end of lease cleaning Canberra professionals for a seamless experience.

Another stressful scenario many tenants face is navigating the bond refund process. Each state and territory in Australia has its own bond refund policy and tenancy authority. While the basic principle remains the same, the rules, application methods and timeframes may vary between states. Today, let’s uncover the bond refund process in ACT. This guide outlines key steps tenants must follow and common issues they may encounter that can delay the process. With the right information and mindset, you can recover your deposited security faster and without any confusion.

1. What Does Rental Bond Mean

When moving into a rental home, landlords or property managers will ask you to pay a bond. It acts as a security deposit paid by the tenant or renter when signing a lease agreement. In the Australian Capital Territory, the amount is equivalent to four weeks’ rent, regulated by the state laws.

The bond isn’t held by the property managers or landlords directly. However, if they do receive a security deposit, they must lodge it with the Rental Bonds Office. Agents must give a receipt to the tenant as proof of bond payment. It must be lodged with the ACT Revenue Office within 14 days of receiving it. Tenants can also lodge a bond using the Tenant Bond Lodgement form.

Once lodged, you will receive a bond number and confirmation message from the authority. This gives you peace of mind that your hard earned bond money is safe until the end of your lease. According to the lease agreement, landlords have the right to withhold part or full the bond money if you fail to meet your predetermined responsibilities. Therefore, you should carefully read your agreement, including duties and roles, cleaning clauses, and other relevant aspects, before signing the lease.

Tip: Access the Rental Bond Portal to lodge, manage and request refunds for bonds faster and stress free. A website provides a detailed summary of bonds held in the portal, including the property address, bond number and bonus status.

2. When can Tenants in ACT Claim their Bond Refund

Tenants can claim their deposited security at the end of their tenancy. While lessors or property managers can request the refund, it is better for tenants to apply for a bond refund if the property is returned in a reasonably clean condition beyond normal wear and tear.

In the ACT, you can lodge the bond refund application online via the ACT Revenue Office’s  Rental Bond Portal. However, in most cases, landlords agree on the amount of bond refund if you pass the rental inspection. If you want to impress your property manager, book experts for a guaranteed end of lease cleaning Canberra and secure hard earned bond money.

3. How to Apply for a Bond Refund in Canberra, ACT

If you want to claim your bond refund at the end of your tenancy, you will need to log in to the Rental Bonds Portal and submit the ‘Bond Refund Form’ online. Both the landlord and tenant must agree to the bond amount.

It is good to read the instructions carefully and never sign an application form before entering the amount. Completed forms will be processed within two weeks.

However, an unsigned bond refund form (either by lessor or tenant) will be issued with a Bond Refund S33 Notice to process the bond refund request. They have 14 days to respond in writing to the notice and advise whether they agree to the requested refund or not. Tenants have the right to dispute and prove their claim to secure the full bond money.

Once the refund has been released from the RBO, the amount will be deposited into a nominated bank account within 48 hours.

4. What are the Common Reasons for Bond Deductions

Every tenant wants to receive the full bond back at the end of a tenancy. However, the chances of deduction increase if you breach the lease agreement or fail to meet the following obligations:

Property Damage Beyond Fair Wear and Tear:

If you have caused damage during your tenancy period that exceeds normal wear and tear, the landlord may deduct the amount of your deposited security to cover the repair costs. The damage includes broken fittings, heavily soiled carpets, large holes in walls, and faulty taps. Also, check the smoke alarms and notify the landlord immediately if they are not working properly.

Cleaning Expenses:

The rental property must be returned in a reasonably clean condition. Leaving dust specks, grime, and debris behind could result in bond deductions. It should be in the same condition as when you received it at the beginning of your lease.

Outstanding Rent or Bill:

Failing to pay rent or utility bills on time can also cause deductions and disputes at the end of a tenancy.

Not returning Keys:

Many tenants forget to return all the keys, and landlords cover the cost of changing locks or replacing keys from the bond.

Tip: Delays in notifying the landlord or property managers can also result in partial bond money deduction.

5. What happens if the requested refund is disputes?

If the landlord or property manager and tenant can’t agree on the refund amount, the issue will be referred to the ACT Civil and Administrative Tribunal ACT for resolution. Both parties will be notified so that they can arrange proof such as the property condition report, photos and videos to prove their claim.

Renters can initiate the ACAT process by submitting a form for dispute resolution within 14 days after receiving the notification. Tenants are required to click all photos before and after cleaning the property to claim their proof.

6. Tenant’s Guide: Rights and Responsibilities in ACT

Under the Residential Tenancies Act in ACT, tenants and landlords have pre determined rights and responsibilities. For tenants, they can secure the full bond by adhering to their roles:

Tenants’ Rights:

• It is a right to receive a receipt and bond number after lodging your bond with ACTRO.
• You will be notified if the landlord disagrees to return your full bond
• You have the right to dispute any unfair deductions.
• To apply for a full bond refund if you adhere to your roles and responsibilities.

Tenant’s Responsibilities:

• Take repairs and maintenance seriously and fix the issues before the rental inspection.
• Conduct a thorough end of lease cleaning Canberra to meet landlord’s strict cleaning standards.
• Pay rent and bills on time
• Return all the keys
• You must give at least 3 weeks’ written notice before the end of your tenancy.

This will help you claim your full bond back while maintaining a positive rental history, which will make it easier to secure your next rental home.

Infographic: Tenant’s Guide: Tips to Claim Your Bond Refund in ACT

Wrapping Up

Moving out of a tenancy may be filled with potential challenges and stressful scenarios, but you can easily claim your bond money with this guide. Make sure you carefully read your lease agreement, cleaning clauses, rights and responsibilities as a tenant to navigate through the process efficiently. Hopefully! You have a seamless move out with full bond money in your bank account.