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$ diff between bond and rent

Discussion in 'Property Management' started by S0805, 29th Jun, 2016.

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  1. S0805

    S0805 Well-Known Member

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    Hi there,

    How do one keep the bond money in line with increasing rent. IP (vic) has been tenanted for few years by same tenant now and they provided the bond money 1st time (a month worth) they rented. it started with $310 week and currently has $340.....just wondering is there any clause where tenant needs to keep bond and rent money in line....

    cheers
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    A couple of options:
    • Get new tenants at market rent with a new bond
    • Suck it up. Very few states allow the bond to be increased eg Queensland.
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    I mentioned this when I was writing the official guide - Tenancy Tip Thursday - Rental Bonds

    Most states allow a top up, it just gets added to existing bond ID of the original.
     
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  4. fullylucky

    fullylucky Well-Known Member

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    Theoretically you should increase the bond as the rent increases but very few PMs do this.

    If you think the tenants is good enough to renew lease then you should trust them enough not to damage the property.

    Just make sure you remember the original amount and not give them extra free money (bond) when they vacate...
     
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  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    Not possible to give them a higher amount as the amount they paid is all that'll be in there.
     
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  6. fullylucky

    fullylucky Well-Known Member

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    That's for normal IPs but for student accommodation, if you are not using a good system or have good habits for taking notes you might think in your mind you need to give back the rental price times number of weeks. And this is where you will make a mistake.

    Sometimes if the tenant is poor af they will argue with you and try to trick you. "Give me back my bond, you said it's n weeks worth of rent so it should be xyz! Why are you trying to steal my bond!!"
     
  7. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Victoria - cannot up the bond during a tenancy.

    Also bond must be lodged with the RTBA within 10 business days of receiving it. Most states are similar where they must be lodged somewhere, so no risk of giving back too much money because you legally shouldn't be holding it.
     
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  8. Biz

    Biz Well-Known Member

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    This is Bond
    [​IMG]

    This is Rent

    [​IMG]

    Quite a difference, I would choose Bond personally.
     
  9. ross100

    ross100 Well-Known Member

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  10. wylie

    wylie Moderator Staff Member

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    You should be lodging the bond with the authority. I'm wondering if you don't do this because there is no way you can give them more back if it is lodged.
     
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  11. S0805

    S0805 Well-Known Member

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    Thanks guys. Being in VIC it appears bond can't be increased. As of now diff between bond and rent is $30 week...not that much..
     
  12. Xenia

    Xenia Adelaide Property Manager Business Member

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    Rooming house bonds do not need to be lodged.
     
  13. wylie

    wylie Moderator Staff Member

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    I didn't know that o_O. I guess that puts most of the power in the hands of the landlord. I'll be lots of rooming house people never see their bond again.
     
  14. D.T.

    D.T. Adelaide Property Manager Business Member

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    Have needed to lodge them for the last year and a bit
    sa.gov.au - Rooming houses
     
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  15. fullylucky

    fullylucky Well-Known Member

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    Your actions in keeping the bond and not giving it back will have consequences. If you don't give back their bond without good reason they can just smash your house and say sucked in. The amount of bond you get is not worth the damaged or stress.
     
    Last edited: 30th Jun, 2016
  16. D.T.

    D.T. Adelaide Property Manager Business Member

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    Share homes cotenancies and subletting fact sheet | Residential Tenancies Authority Bonds are meant to be lodged with RTA for rooming houses in QLD too.
     
  17. Xenia

    Xenia Adelaide Property Manager Business Member

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    Oh good. Much better this way.