bond refund
📖 What is bond refund? Meaning and definition
When a tenancy ends, the bond money held by the Bond Centre is released. This release is known as a bond refund. The Tenancy Tribunal determines who receives the bond money based on the circumstances of the tenancy's conclusion and any applications made by the landlord or tenant.
In many situations, if the tenant has met all their obligations, the bond is refunded directly to them. However, if there are outstanding issues, such as unpaid rent, damage to the property beyond normal wear and tear, or unremoved rubbish and belongings, the landlord may apply for the bond to be paid to them to cover these costs. The Tribunal will consider evidence from both parties before making a decision.
For example, a landlord might apply for a bond refund to cover rent arrears or compensation for damage to the property. Conversely, a tenant might be awarded the full bond if they have fulfilled their responsibilities. The Tribunal's order will specify who the Bond Centre should pay the bond to, and this payment is typically made immediately following the order.
It's important for both landlords and tenants to understand that the bond is not automatically returned to the tenant. Its distribution depends on the final state of the tenancy and any claims made and proven before the Tenancy Tribunal.
📋 Requirements
- The tenancy must have ended.
- An application for a bond refund must be made to the Tenancy Tribunal by either the landlord or the tenant.
- The Tenancy Tribunal must issue an order specifying who the Bond Centre is to pay the bond to.
📝 Procedure
- The tenancy ends.
- Either the landlord or the tenant applies to the Tenancy Tribunal for a bond refund, often alongside other claims like compensation or rent arrears.
- Both parties may attend a hearing to present their case and evidence.
- The Tenancy Tribunal considers the applications and evidence, such as photos of the property or rent records.
- The Tribunal issues an order directing the Bond Centre to pay the bond to the specified party (tenant or landlord) immediately.
💡 Examples
- After a tenancy ended, the Tenancy Tribunal ordered the Bond Centre to pay the full $1,000 bond to the tenant because the landlord's application for compensation was dismissed.
- When a tenant left belongings and rubbish behind, the Tribunal ordered the Bond Centre to pay the $218 bond to the tenant, while also ordering the landlord to reimburse the tenant for rubbish removal.
- In a case where the tenant had significant rent arrears, the Tenancy Tribunal ordered the Bond Centre to pay the $102 bond to the landlord to offset some of the outstanding rent.
- A tenant was awarded $1,750 from their landlord, and the Bond Centre was ordered to pay the $1,000 bond directly to the tenant immediately.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
Who decides who gets the bond money back?
The Tenancy Tribunal decides who receives the bond money after considering applications from both the landlord and the tenant, and reviewing any evidence presented.
Can a landlord keep the bond for damages?
Yes, if the Tenancy Tribunal finds that the tenant caused damage to the property beyond normal wear and tear, the Tribunal can order the Bond Centre to pay some or all of the bond to the landlord as compensation.
What if the tenant owes rent at the end of the tenancy?
If a tenant owes rent, the landlord can apply to the Tenancy Tribunal for the bond to be paid to them to cover the outstanding rent arrears.
How quickly is the bond refunded after a Tribunal order?
The Tenancy Tribunal orders often specify that the Bond Centre is to pay the bond to the designated party immediately after the order is made.
Do I need to apply for the bond refund, or does it happen automatically?
The bond refund does not happen automatically. Either the landlord or the tenant must make an application to the Tenancy Tribunal for the bond to be released and paid to a specific party.