Agreement to keep bond?

Discussion in 'Property Management' started by housechopper2, 24th Mar, 2020.

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  1. housechopper2

    housechopper2 Well-Known Member

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    In this economic environment, in the situation where a tenant can’t pay rent for a month...

    Could a landlord enter into an agreement with them to keep their bond at the end of the tenancy in return for the tenants non-payment of rent?

    Obviously there would be no money left to claim for damage etc at the cessation of the lease. But this could be a way to mitigate losses from non-payment.
     
    housechopper2, 24th Mar, 2020
    #1
  2. Tom Rivera

    Tom Rivera Property Manager Business Member

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    This isn't a feasible solution, unless the tenant happens to still owe the money at the end of their tenancy. You'd be much better off making some sort of a payment plan to catch it up, which is realistically what we're going to need to do anyway.
     
    Tom Rivera, 24th Mar, 2020
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  3. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    The bond is there by default for any unpaid rent, but shouldn't be offered up. As you say there would be no funds for any damage, and what if they can't pay rent for more than 4 weeks? It would also potentially impact your landlord insurance policy as the fine print usually states that at least 4 weeks of bond must be held.
     
    Mel Morgan, 24th Mar, 2020
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  4. mikey7

    mikey7 Well-Known Member

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    No ways... get onto a payment plan instead. The PM should be managing all this for you.
    Leave the bond alone - its there for a reason. You'll just be disadvantaging yourself if you let them tap into that mid lease!
     
    mikey7, 24th Mar, 2020
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