bond deductions
📖 What is bond deductions? Meaning and definition
When a tenancy ends, a landlord may apply to the Tenancy Tribunal to have certain costs paid from the bond that was lodged at the start of the tenancy. These costs, known as bond deductions, typically cover financial obligations the tenant failed to meet, such as rent arrears, or expenses for repairs and cleaning that are the tenant's responsibility.
The Tenancy Tribunal reviews the landlord's application and determines if the requested deductions are justified. If the Tribunal agrees, it will issue an order specifying the exact amounts to be paid from the bond to the landlord. The remaining balance of the bond, if any, is then returned to the tenant.
Common reasons for bond deductions include unpaid rent, reimbursement for filing fees incurred by the landlord, costs for repairing damage to the property (like replacing downlight covers or window repairs), cleaning costs, rubbish removal, and outstanding utility bills such as water rates. The Tribunal's decision outlines how the bond is apportioned between the landlord and the tenant, ensuring a clear breakdown of what each party receives or is liable for.
📋 Requirements
- The landlord must apply to the Tenancy Tribunal for the deductions.
- The landlord needs to provide evidence supporting the claims for costs, such as rent arrears, damage, or cleaning.
- The Tenancy Tribunal must issue an order for the bond deductions to be made.
- The tenancy must have ended or be in the process of ending.
📝 Procedure
- The landlord files an application with the Tenancy Tribunal.
- A hearing is scheduled, which may be conducted by telephone or video.
- The Tenancy Tribunal considers the evidence presented by the landlord (and tenant, if they attend).
- The Tribunal calculates the total award amount based on justified claims.
- An order is issued for the Bond Centre to pay the specified amount from the bond to the landlord.
- The remaining bond balance is apportioned to the tenant.
💡 Examples
- A landlord was awarded $483.43 from the bond to cover rent arrears and a filing fee after the tenant failed to pay rent by the due date.
- The Tenancy Tribunal ordered $1,575.04 to be deducted from the bond for a tenant's outstanding water rates, cleaning and rubbish removal, and repairs including an insurance excess for painting.
- A property management company, acting as an agent for the landlord, received $207.00 from the bond to cover cleaning costs after the tenancy ended.
- After a tenancy terminated, the landlord successfully claimed for the cost of replacing a downlight cover and repairing a window from the tenant's bond.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What can a landlord deduct from my bond?
Based on the cases, landlords can deduct for unpaid rent, property damage (like window repairs or replacing downlight covers), cleaning costs, rubbish removal, outstanding water rates, and reimbursement for Tenancy Tribunal filing fees.
Do I have to agree to bond deductions?
No, if you don't agree, the landlord must apply to the Tenancy Tribunal to get an order for any deductions. The Tribunal will then decide if the deductions are justified.
What happens if the bond doesn't cover all the costs?
The case examples show that the landlord is awarded what can be paid from the bond. If the costs exceed the bond amount, the landlord may need to pursue the remaining amount separately, though the excerpts do not detail this process.
How do I get my bond back?
The Tenancy Tribunal will issue an order specifying how the bond is to be apportioned. Any balance remaining after deductions are made will be paid to you by the Bond Centre as per the Tribunal's order.
What if I can't attend the Tenancy Tribunal hearing?
In the cases provided, hearings were conducted by telephone or video. If a tenant did not attend or could not be reached, the Tribunal proceeded with the hearing, often ruling in favour of the landlord based on the evidence presented.