Bond Deductions in Rentals
Bond deductions in rentals are a common issue faced by many tenants. When the tenants are moving out of the rental property, they need to take care of many things before handing over keys to the agent. Here are the top 10 reasons your rental bond gets slashed.
1. Damages
Broken or Damaged Items
Most rental houses come with basic appliances such as an oven, dishwasher, cooktop, boiler, and central heating and cooling systems. Many landlords also provide furnished properties with additional appliances like a microwave, washing machine, kettle, electric heaters, fans, coolers, and a vacuum cleaner. A rental agent or landlord can deduct money from your bond if they find any broken or damaged appliances during your tenancy due to rough or improper use. However, tenants can report electrical issues, which are generally the landlord’s responsibility to fix.
Carpet Damage
General wear and tear is acceptable and typically overlooked by rental agents or landlords, as per government guidelines. However, if you have pets that tear or soil the carpet, this may be considered damage. Furry pets can leave hair, dust, dirt, and allergens on the carpet, and if not cleaned regularly, this can cause long-term damage. Carpets can also be burned by hot items such as pans, irons, or other heated appliances. Real estate agents check the carpet’s overall condition and compare the move-out condition of the carpet with the condition at the start of the tenancy. If they find any damage, they have the authority to deduct the cost from your bond.
Broken Walls, Tiles, or Other Areas
Accidents can happen, and walls or tiles may get damaged during move-in or move-out, especially when handling heavy furniture. Tenants need to repair any such damage before handing over the keys to the agent. Otherwise, the rental agent can hand over the damage repair bill to the tenant or deduct some money from the bond.
2. Insufficient End of Lease Cleaning Leads to Bond Deductions
End of lease cleaning is the one of the biggest reason for the bund deduction of the bond dispute. Tenants are required to thoroughly clean every corner of the property before moving out. According to the bond agreement, tenants must return the property in the same condition it was in at the start of the tenancy, allowing for fair wear and tear.
Many tenants choose to clean the property themselves. However, if the cleaning is not up to the standard expected by the rental agent or landlord, they may withhold a portion of the bond to hire professional cleaners to rectify the issue.
To avoid this, many tenants hire professional end-of-lease cleaners who specialise in deep cleaning. These professionals follow detailed cleaning checklists that align with rental agents’ expectations. Services often include extras such as window washing (inside and out), blind cleaning, garage and outdoor area cleaning (including porches and shaded areas), and more. When contacting cleaning services, it’s important to explain the property size, condition, and specific requirements to receive an accurate quote. After the cleaning is completed, schedule a final inspection with the rental agent or landlord. If any issues are identified, resolve them promptly to avoid bond deductions.
3. Pending Bill:
Tenants need to take care of their electricity, water, and gas bills during their tenancy. In some cases, if you forget to settle these bills before your move-out date, the rental agent may deduct the outstanding amounts from your bond, as outlined in the bond agreement.
To avoid disconnection or unnecessary charges, make sure to settle all utility bills and update your residential address with your mobile provider, Wi-Fi provider, and bank. Also, notify your electricity and gas providers of your move-out date to prevent additional charges after you’ve vacated the property.
4. Abandon Garden/ Outdoor areas:
Outdoor Kitchen / BBQ:
Many properties include outdoor kitchens, ovens, BBQs, firepits, or bar setups in the alfresco area. Tenants are responsible for maintaining these outdoor amenities throughout their tenancy and especially at the end of it. Rental agents or landlords will expect these areas to be reasonably clean. While some minor outdoor wear may be overlooked, neglecting these spaces could still lead to bond deductions.
Outdoor Backyard and Lawn:
Mow the lawn in front and the backyard before vacating the rental property. Treat any weeds and wipe down plant leaves if needed. Don’t abandon your backyard garden, it can result in bond deductions. A landlord or rental agent may hire a professional gardener and pass the cost on to you if the area is found neglected.
Outdoor Windows, Balconies, and Porch:
Remove cobwebs, dirt, and spiders from outdoor windows, balconies, porches, and other shaded areas. Rental agents may compare move-in and move-out photos of these areas to assess their condition. Many landlords provide professionally cleaned windows at the start of a tenancy and expect them to be professionally cleaned again upon exit to maintain property standards.
Garage:
Make sure the rental property garage is empty by the end of your tenancy. Remove all personal belongings, scrub greasy or stained floors and clean thoroughly. Also, remove cobwebs and any noticeable wall marks to avoid potential bond deductions.
5. Poor communication during Move-out
Missing Keys:
If you lose any keys during your tenancy, report it to the rental agent as soon as possible. If the keys are found to be missing at the end of your lease, inform the agent immediately. If this happens, tenants are usually responsible for the cost, which may be deducted from the bond.
Clear Communication:
If your real estate agent or landlord identifies any issues during the final inspection, you will receive an email or letter outlining the concerns. Make sure to provide clear and timely responses, explaining how the issues will be resolved, what happened, and why. Failing to communicate or respond to the rental agent’s queries can increase the risk of bond deductions or lead to a dispute at the end of your lease.
6. Outstanding Rent:
Tenants must ensure all rent is paid up to their move-out date, as stated in the rental agreement. Rental agents have the authority to deduct any outstanding rent from the bond.
If you’re transferring your lease to another tenant without breaking the lease, be sure to notify the landlord or agent to avoid any confusion or potential disputes.
7. Leaving your stuff behind:
Don’t leave heavy furniture or unwanted items at the rental property when moving out. Many tenants abandon the property without notice or leave it in a state of disrepair or filth. The landlord or rental agent can withhold bond money to cover the cost of cleaning and restoring the property to a reasonable standard.
Arrange a skip bin for the disposal of recyclable or damaged items. Consider donating any unwanted items that are still in good condition to charity or those in need.
8. Loss or Damage to the Landlord’s Goods
In furnished properties, landlords often provide household items such as sofas, beds, wardrobes, kitchen appliances, and crockery. As part of the bond agreement, tenants are allowed to use these goods but are expected to treat them with care and maintain them in good condition throughout the tenancy.
Any loss, damage, or misuse of the provided furniture or appliances may result in deductions from the bond. If something gets damaged during the tenancy, inform the landlord or agent immediately rather than waiting until the end of the lease.
9. Bond Deductions due to Unauthorised changes:
Lock Changes:
Changing the locks without informing the landlord or agent may take strict action for the tenant. If tenants change the locks on the rental property without notifying the landlord or agent, strict action may be taken. During the final inspection, the rental agent will check all keys against the condition report. Landlords have the right to withhold part or all of the bond if lock changes were made without approval.
Hooks and Rails:
Tenants may use removable adhesive strips (such as sticky or glue tapes) to hang paintings and wall decorations, but these must be removed carefully at the end of the lease to avoid damaging the walls. Many tenants accidentally damage walls by installing permanent hooks or bathroom rails themselves.
Always seek permission or notify the rental agent or landlord before installing any hardware. If removing hooks or rails at the end of your tenancy, take extra care to avoid leaving holes or scratch marks. You may be required to patch and paint over any damage to prevent bond deductions.
10. Missing Property Record of the Move-In Condition
At the start of your tenancy, always review the initial condition report carefully before signing the bond agreement. This report outlines the state of the property, including any existing damage, cleanliness, and the working condition of appliances. It’s a key document used to assess the property’s condition at the end of your lease.
Take photos or videos of each room, fixtures, and appliances before moving in. These serve as evidence to support your case in case of any bond disputes later on. If you discover any damage, broken items, or non-working appliances after moving in, report them to the agent or landlord as soon as possible. The earlier you raise these issues, the better your chances of avoiding bond deductions.
Sometimes, condition reports may contain incorrect or incomplete information, or photos of the move-in condition may be missing. In some cases, private landlords might prepare bond agreements without accurately recording the property’s condition. This can lead to disputes when you move out.
