bond refunds
📖 What is bond refunds? Meaning and definition
When a tenancy ends, the tenant is usually entitled to have their bond money returned to them. This process is known as a bond refund. Sometimes, landlords may claim deductions from the bond for things like unpaid outgoings, compensation for damages, or other agreed-upon costs, as seen in the case where a landlord cross-applied for compensation claims.
The refund process often involves an agreement between the tenant and landlord on how much of the bond, if any, should be withheld. In one case, the parties agreed that a specific amount, $400.00, was to be withheld from the bond, with the remaining balance released to the tenant, pending the determination of the landlord’s claims.
If there is a dispute over the bond, either the tenant or the landlord can apply to the Tenancy Tribunal for a decision. The Tribunal will then determine how the bond should be distributed. For example, a tenant applied for a refund of the bond, and the Tribunal ordered a company to pay the remaining bond balance to the tenant immediately.
The burden of proof for any claims against the bond typically rests with the party making the claim, often the landlord, if they are seeking to withhold part of the bond for compensation or other reasons.
📋 Requirements
- The tenancy has ended.
- A bond was paid by the tenant at the start of the tenancy.
- Agreement between parties on the bond distribution, or a Tenancy Tribunal order.
📝 Procedure
- The tenancy ends.
- The tenant applies for a refund of the bond.
- The landlord may cross-apply for compensation claims or other outgoings.
- Parties may agree on a portion of the bond to be withheld, with the balance released.
- The Tenancy Tribunal determines the final bond distribution if there is a dispute.
💡 Examples
- After moving out, a tenant applied to the Tenancy Tribunal to get their bond money back.
- A landlord and tenant agreed that a certain amount of the bond would be kept by the landlord to cover some cleaning costs, and the rest would be refunded to the tenant.
- The Tenancy Tribunal ordered a company representing the landlord to immediately pay the remaining bond balance of $400.00 to the tenant.
- The landlord's claims for compensation were dismissed, leading to the tenant receiving a full bond refund.
❓ Frequently asked questions
What happens if my landlord doesn't agree to refund my bond?
If your landlord doesn't agree to refund your bond, or if there's a dispute over how much should be refunded, you can apply to the Tenancy Tribunal for a decision. The Tribunal will hear both sides and make an order.
Can a landlord withhold the entire bond?
A landlord can only withhold the bond if they have valid claims for compensation, unpaid outgoings, or other agreed costs, and they can prove these claims. If the Tenancy Tribunal dismisses their claims, the bond must be refunded.
Do I need to apply for my bond refund?
Yes, as a tenant, you typically need to apply for the refund of your bond. This initiates the process, especially if there are any disagreements with the landlord.
What is the 'burden of proof' in a bond refund dispute?
The 'burden of proof' means that the party making a claim must provide evidence to support it. If a landlord wants to withhold part of the bond, they must prove their reasons for doing so to the Tenancy Tribunal.
How quickly should I receive my bond refund?
The Tenancy Tribunal can order an immediate payment of the remaining bond balance once a decision is made. The speed of the refund can depend on whether there is an agreement or a Tribunal hearing.
What if the landlord has claims against the bond?
If the landlord has claims, such as for outgoings or compensation, these will be considered. The parties might agree on a portion to be withheld, or the Tenancy Tribunal will determine if the landlord's claims are valid and how much, if any, should be deducted from the bond.