Rental bonds and your rights in NSW

What a bond actually is

A rental bond is a security deposit you pay at the start of a tenancy. It stays your money — it is held as security in case you leave owing rent or causing damage beyond fair wear and tear. In NSW, the bond on a residential tenancy cannot be more than four weeks' rent, and a landlord cannot ask for extra 'holding' bonds on top.

Always get a receipt for the bond and for every other payment you make. If someone refuses to give a receipt, that alone is a warning sign.

Where the bond must go — never a personal account

On a formal lease in NSW, your landlord or agent must lodge the bond with NSW Fair Trading, usually through Rental Bonds Online (RBO). The money sits with the government — not in the landlord's pocket — until the tenancy ends. You should receive confirmation from Rental Bonds Online that your bond has been lodged; if it never arrives, ask why.

This is where many scams and dodgy arrangements show themselves. A landlord who insists the bond be transferred to a personal bank account and simply kept there — 'don't worry, I'll give it back' — is either running a scam or breaking the rules. Slow down, and never pay anything before you've inspected the room.

The condition report — your 7 days

On a formal tenancy you'll be given a condition report describing the state of the property. You have 7 days to check it, add anything the landlord missed — stains, marks, broken fittings — and return your copy.

Do this even if everything looks fine. The condition report plus your own dated photos from day one are the evidence that decides bond disputes months later.

Boarders, lodgers and share houses — know which one you are

Here is the detail most students find out too late: many share-house arrangements are not covered by the NSW Residential Tenancies Act. If you rent a room from a live-in owner, or informally from a head tenant without your name on a lease, you may be a boarder or lodger rather than a tenant — with far fewer legal protections. Your bond may not have to be lodged, and Fair Trading's bond system may not apply.

That doesn't make these arrangements bad — plenty of genuine student housing works this way. It means you must protect yourself: inspect extra carefully, get the agreement and the bond amount in writing, pay by bank transfer (never cash without a receipt), and keep every message. If you're not sure which category you fall into, call NSW Fair Trading on 13 32 20 and ask.

Getting your bond back

When you move out at the end of a formal lease, either side can start the bond claim through Rental Bonds Online. If you and the landlord agree, the refund is usually quick. If the landlord claims part of the bond and you disagree, don't just accept it — disputes can be taken to the NSW Civil and Administrative Tribunal (NCAT), where your day-one photos and condition report do the talking.

Leave the room clean, photograph everything on the way out, and return the keys with a written record of the date.

Where to get help

Help is free, and using it will never affect your visa.

• NSW Fair Trading — 13 32 20 — bonds, tenancy rights and disputes.
• Tenants' Union of NSW (tenants.org.au) — free advice for renters, including factsheets on boarders and lodgers.
• TIS National — 131 450 — a free interpreter in your language for calls to any of these services.