Home Hunters Realty

 

Security Bonds

 

Generally, money paid as a security bond must not be more than the equivalent of four weeks' rent.

The exceptions are:

  • where the weekly rent is more than $500 (any amount of bond can be requested but tenants should check how much it is before agreeing to a tenancy);
  • where the owner of the property was living in it for the previous three months (any amount of bond may be requested); and
  • where the tenant has a cat or dog, or both (an extra $100 can be charged to meet the cost of fumigation that may be required at the end of the tenancy).

If the ownership of a rented property changes, the tenant and the bond holder must be notified and the signatures changed over. Form 9 (Notice of Change of Ownership/Property Management) informs the tenant and bond holder of the full name and address of the new owner or property manager. It must be signed by the new owner and the previous owner.

In situations where joint tenants are named on the lease agreement and one or more of these joint tenants leaves or is replaced by new joint tenants, with the consent of the owner/agent, it is advisable for all parties to agree to amend the lease agreement. The security bond money should then be refunded to all of the original tenants, after any necessary deductions have been made. A new security bond should then be deposited in the names of the owner/agent and the names of each of the tenants listed on the amended lease.