A rental bond is a security required by a landlord to protect the landlord, against damage to the property, cleaning costs, rent default or breach of the lease causing loss to the landlord. Depending on the size of the monthly rent, the rental bond is normally set at one month’s rent and and is lodged with the relevant State or Territory Residential Tenancy Authority (RTA) or equivalent until the end of the tenancy.
It is paid to the real estate agent/property manager on the same day or next day after the agent approval process.
It is only available for tenancies of 6 or 12 months. For longer tenancies, the bond is repaid after the first 12 months and if taken, the insurance is invited for renewal annually.
It applies to bonds up to $5,000.
No, it will only cover cleaning in excess of that which is reasonably required of a tenant. A tenant is required to leave the premises in a habitable condition, as they found it.
There is a $200 excess (or 15% of the bond if greater) for each claim for damage/cleaning costs, with a maximum of two damage/cleaning excesses in one insurance period. Whether it involves damage or cleaning, one excess will apply and only one excess will apply to damage and cleaning costs at the time of the final inspection.
Yes, but if the tenancy is longer than 12 months, the insurance is annually renewable.
The bond will stay with the RTA and as you will have repaid the loan, your only payments during the second period are the relatively low payments for the insurance cover, if requested to continue.
Yes, you can obtain automatic pre-approval online in a few minutes if you meet our criteria. We quote fortnightly and monthly cost options based on the geographical area of the rental property, the bond amount and bond insurance if taken.
Yes, with no penalty.
We will happily discuss an alternative repayment schedule if you get into financial hardship. If you miss a payment, and there is no response to our follow-up enquiries, we will hand the matter over to our recovery agents, who will add a charge to the debt. We also will, if necessary, enforce our right to the net bond (after the landlord’s interest) held by the Residential Tenancy Authority. We will also cancel the insurance policy(s) if taken, after 30 days.
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