What Exactly Is a Rental Bond and What Should You Know About It?

Now there’s something else to worry about when it comes to renting? Actually…a rent bond is standard and can actually be a good thing but what is its purpose and what can you do if you can’t make the payment for it upfront?

So, What Is a Rental Bond and why is it needed?

In short, a rental bond is a one-time security deposit that is typically required by landlords or a property management group. Although the asking price of a rent bond is pretty steep considering it’s usually always the amount of your first month’s rent, the bond is designed to cover any damages that may occur to the property during a tenancy. It covers things like holes in walls, broken windows, or stained carpets. It also covers other costs that may be incurred by the landlord, such as cleaning fees or key replacement fees.

Can You Get Your Bond Back?

So, here’s how it goes…at the end of your tenancy, your landlord will inspect the property to see if there is any damage. If there is no damage, you will get your security deposit back in full. If there is damage, the cost of the repairs will be deducted from your security deposit and you will still get a partial amount of the bond back.

Here’s How You Can Afford the Bond Even When You Can’t

Let’s think about it like this; the typical rent bond amount is often going to reflect one month’s rent or sometimes more and let’s face it, rent alone can feature a hefty price tag especially when you’re not counting having to pay two months worth of rent at once. 

The typical rent price in Australia is around $1,914 AU for a furnished 900sqft apartment. That would mean you would have to pay $3,828 AU just to move into it. That doesn’t include activation fees for utilities, moving truck costs, gas, moving boxes, or a dessert for all of your hard work once you’ve completed the move.

Oftentimes, people find themselves not being able to accommodate such high prices within such a small window of time, a window of time meaning all in one day. Many Australians go for the personal loan approach; 8 million Australians to be exact. A personal loan can be helpful for your rental bond coverage.