A landlord or agent may apply to keep part or all of your rental bond if you:
- Owe unpaid rent
- End your lease early and a break fee applies
- Don’t return the property in the same clean condition as at the start of the tenancy
- Fail to return all keys, remotes, or security devices (and locks need to be changed)
- Cause damage beyond fair wear and tear
- Have outstanding water usage charges (if requested by the landlord within 3 months of the bill being issued).
Note: This is not a full list. Other valid reasons may also allow a landlord or agent to make a claim.
Who holds the bond?
Your landlord or agent cannot personally hold your bond money.
All bonds must be lodged with your state or territory’s bond authority, where the money is kept safely until the tenancy ends.
If the property is left in good condition and rent is up to date, the bond is refunded after the final inspection. If not, the landlord may apply to have part or all of it released to cover costs.
Condition reports
Your landlord must provide a condition report at the start of the tenancy. This records any existing marks, damage, or wear. As the tenant, you should:
- Check the report carefully and note anything the landlord missed (photos are recommended).
- Return the updated report within 7 days of signing the lease.
- Ensure both you and the landlord have signed copies.
- Keep a copy for your records.
A final condition report must also be completed when you move out.
Claims without tenant agreement
If a landlord or agent makes a claim on the bond without your consent, they must provide you with:
- the final condition report
- copies of invoices, quotes, receipts, or other evidence for costs.
These documents must be provided to you within 7 days of the claim being made. If DCJ Housing (Department of Communities and Justice Housing) contributed to the bond, they must also receive copies.
Failure to provide these documents on time can lead to penalties for the landlord or agent.
What to do if there’s a dispute
Step 1: Try to resolve it directly
Make sure:
- rent is fully paid, and
- the property is returned in its original condition (apart from fair wear and tear).
Then speak with your landlord or agent and try to reach an agreement. The Tenants’ Union of NSW provides useful guidance for negotiation.
If you agree on an outcome, payment should be processed within 14 days.
Step 2: If you can’t agree
If you still disagree, the landlord/agent must apply to the NSW Civil and Administrative Tribunal (NCAT) within 14 days of notice, and also notify Fair Trading. The Tribunal then decides how the bond will be released.
Freezing the bond during a dispute
If you apply to NCAT, log in to Rental Bonds Online before the “due for payment” date and notify Fair Trading. This freezes the bond until the dispute is resolved.
If the claim was lodged on paper, complete and return the slip at the bottom of the claim form to Fair Trading before the payment date to freeze the bond.
Going to the Tribunal
NCAT hears both sides in tenancy disputes, including bond claims.
Tenants can apply even if the bond has already been released, provided it is within six months of the payout. The same rule applies for landlords.
You will need to provide:
- reasons why some or all of the bond should be returned to you
- evidence that the bond wasn’t lodged with Fair Trading (if relevant)
- details of any bond money already paid out.
How to apply
- Apply online via NCAT, or
- Download and lodge a paper application form at a Tribunal Registry or Service NSW centre.
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Sample letter. Requesting evidence of a bond claim
[Your name and address] [Date]
[Landlord’s/Agent’s name and address]
Dear [Name],
Re: Bond claim [former residential address]
I have been advised that a claim has been made against my rental bond.
In line with clause 37 of my residential tenancy agreement, I request a detailed breakdown of the claim. Please provide copies of all supporting documents, including the final condition report, invoices, receipts, quotes, and any other relevant evidence.
If relevant, I also request a copy of the entry condition report completed at the beginning of the tenancy. [Delete if not required]
Where the claim relates to water usage, please also include a copy of the latest water bill (both front and back). [Delete if not required]
I look forward to receiving this information promptly so that the matter can be fairly reviewed.
Yours sincerely, [T Tenant]