How to Navigate NSW Tenancy Rights and Recover Your Bond

Your Bond and What It Covers

In NSW, a rental bond is a security deposit paid by the tenant at the start of a tenancy. The maximum bond amount is four weeks rent for unfurnished properties and six weeks rent for furnished properties. Bonds over $20,000 must be held in a separate interest-bearing account with the Rental Bond Board.

The bond is not a penalty. It is security against unpaid rent, property damage beyond fair wear and tear, or other breaches of the tenancy agreement. At the end of the tenancy, the bond is either returned in full or disputed through NSW Fair Trading or NCAT.

Step 1: Document the Property Condition at Move-In

Before moving in, complete the official condition report provided by the landlord or agent. Take dated photographs of every room, including walls, floors, fixtures, and any existing damage. Keep these photographs in a folder with your tenancy agreement and bond receipt. The condition report is your primary evidence if a bond dispute arises.

Do not sign a condition report that states the property is in perfect condition if you can see damage. Write a description of the damage on the report, take a photograph, and have the landlord or agent sign next to your note. This creates a dated record that the damage existed before your tenancy.

Step 2: Understand What Fair Wear and tear Means

Fair wear and tear is damage that occurs from ordinary use of the property. Faded curtains from sunlight, worn carpet in high traffic areas, and minor scuff marks on walls are all fair wear and tear. You are not liable for these at the end of the tenancy.

Damage that exceeds fair wear and tear includes broken windows, stains that cannot be removed with standard cleaning, missing items, and holes in walls larger than a small nail hole. The landlord or agent must provide evidence, such as invoices or quotes, to prove that damage occurred during your tenancy and was not pre-existing.

Step 3: Request Your Bond Back Promptly

When you vacate the property, apply for your bond refund through NSW Fair Trading as soon as possible. The landlord or agent has 10 days to respond to your refund application. If they do not respond within that time, Fair Trading releases the bond to you automatically.

If the landlord or agent claims part or all of the bond, Fair Trading will notify you and provide their evidence. You have 20 days to dispute the claim through Fair Trading. If Fair Trading cannot resolve the dispute, it is referred to the NSW Civil and Administrative Tribunal (NCAT).

Step 4: Respond to a Bond Claim

If the landlord or agent claims money from your bond, gather your evidence immediately. This includes:

• Your condition report from move-in
• Photographs showing the condition of the property when you left
• Receipts for cleaning or repairs you completed before vacating
• Any email correspondence about maintenance requests or repairs you raised during the tenancy

NCAT can order the full return of the bond, a partial refund, or payment of additional money to the landlord if the damage exceeds the bond amount. NCAT decisions are binding and enforceable.

Step 5: Know Your Rights During the Tenancy

The Residential Tenancies Act 2010 protects tenants in several key areas:

• Rent increases: Landlords can increase rent once every 12 months for fixed-term agreements and once every 180 days for periodic agreements. They must give 60 days notice for periodic agreements and 120 days notice for fixed-term agreements where the increase takes effect after the fixed term ends.
• Repairs: Urgent repairs, such as leaking water or broken heating in winter, must be addressed within a reasonable time. If the landlord does not act, you can apply to NCAT for an order requiring repairs or authorisation to arrange repairs and deduct the cost from rent.
• Entry: The landlord or agent must give you reasonable notice before entering the property. For routine inspections, this is seven days. For repairs or showing the property to prospective tenants, 48 hours is reasonable. They cannot enter without notice except in genuine emergencies.

Getting Help

Tenant advocacy services, including the Tenants' Union of NSW, provide free advice on tenancy disputes. If you cannot afford NCAT fees, you may be eligible for a fee waiver. Fair Trading also runs a free dispute resolution service for bond and tenancy issues.