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The things you need to know about rental bonds

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During the last decade, there has been a steep rise in people staying in rentals in Australia. A study suggests, 30.9 percent of Australians live in rentals. Staying in a rental house has its benefits, but there is also a slight problem. In Australia, you have to pay a rental bond, which acts as collateral and is refundable after the contract between the tenant and owner expires. However, as a majority of these tenants are students or professionals at the early stage of their career. They cannot afford the upfront rental bond, which can complicate the situation.

Thankfully, some financial institutions and companies provide a solution to these problems. You can take a personal loan that is specifically designed so you can pay off the rental bond. Let us discuss more about loans and the things you need to know about rental bonds that might be oblivious at first glance.

What is a Rental Bond?

Rental bond

A rental bond is monetary collateral that stands as a deposit during the start of a tenancy. When the owner of the house or property takes a bond from the tenant, he or she is liable to provide a receipt for the amount and is responsible for lodging it with the residential tenancies authority within ten days from accepting the money. Failing to do so is a punishable offense.

The rental bond can be lodged online, by post, or in person and be sure to claim a receipt for proof of payment.

Once the property has been vacated, the money is returned to the tenant, given there is no due in rent, damage to the property, or other charges. For the owner to claim any money from the rental bond, they have to provide proof of the damage.

How Rental Bond Works?

A rental bond requires an official document to be prepared which is then deposited to a state government body or approved financial intuition in a ‘bond trust.’ The landlord or the owner of the property is responsible for providing the bond lodgment form and money to the authorized departments. Do not forget to obtain a receipt for the bond.

The maximum amount of the rental bond varies from one state to the other. Some states require an equivalent amount to one month or four weeks of rent. Additionally, the landlord may also add to the amount depending on the furnishing of the house.

After you have completed the bond lodgment form, you’re required to pay the deposit to your landlord or real-estate representative. At the end of the contract, the rental bond gets released to your account after deducting the amount for repairs. However, the bond money is yours, and for the landlord to claim any portion of it the tenant either has to break his contract or the landlord has to provide evidence of property damage.

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If you cannot pay the Bond Right Away?

cash loan and rental bond

Cash loans are the best options when we consider paying rental bonds. The nature of these loans makes them ideal as there is no requirement of collateral. A large number of people who stay in a rented house are students from abroad, providing collateral to the bank is not an option for them. With personal loans or cash loans, the approval process is quick. The loan can get approved within an hour, and money will be transferred to your bank account the same day. In most circumstance, the loan is transferred to your account within without hours.

If you have a good credit history, cash loans can come at very affordable interest rates. However, you can still get the loan even though your credit score might not be the best; only the rate of interest might be slightly higher. With cash loans, you have the flexibility to choose the repayment period. You can choose to pay the loan little by little every month or select any other option as per your convenience. For these reasons, cash loans are a very popular option for situations like these.

Rental Bond Law

According to the law, if the rent of the property is less than $700 a month, then the rental bond cannot be more than four weeks of rent. In cases like this, a rental bond should be negotiated between the property owner and the tenant to form a payment agreement for the total amount of the rental bond.  If the tenant pays rent that is above $700 a month, a minimum deposit of 4 weeks rent will be required.

Conclusion

Rental bonds are a necessity in Australia to stay in a rented apartment or house. This causes complications for students and young tenants who may not have the funds to make the advance payment. A rental bond loan is designed specifically for this purpose. They provide the tenant with a cash loan that can be used to pay the rental bond. Personal loans or cash loans are easy to obtain with approvals within an hour and the money transferred to the bank within a day. They come at affordable rates and the repayment period is flexible. Hence, if you are short on cash for rental bond payment, cash loans are always the best way.

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