The Share Housing Survival Guide - city scape graphic
Sections tab graphic
• Introduction
• Looking for a place
• Moving in & money stuff
• The legal situation
• Living in a share house
• Moving out (or being kicked out)
• Share housing - the future
• Glossary
• Contact points
• Extras
• Acknowledgements / legal info
• Site map
• Downloads
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The legal situation - tab graphic
• What is my legal position?
• Your rights and responsibilities as a tenant
• Tips for avoiding legal problems
• The different tenancy relationships - pros and cons
• Going to the Consumer, Trader and Tenancy Tribunal
Getting your bond back at the end of your tenancy can be one of the most difficult aspects of share housing. This is why it's very important that you are clear about your rights regarding the bond and make sure you do the necessary paperwork when you move in. You may still have difficulties recovering the bond but at least you will be in a better position if things go wrong.
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Co-tenants

In a co-tenancy the rental bond will usually be paid to the landlord by all the tenants and lodged with the Rental Bond Board (RBB) under all the names. You should receive a receipt from the RBB giving you your rental bond number within 14 days of paying the bond. If you don't , contact the RBB and they will follow it up with the landlord.

At the end of the tenancy, if you have not damaged the place and do not owe any rent you can claim your bond directly from the RBB or if you have damaged the place or are behind in rent the landlord can claim part or all of the bond . If you dispute their claim, you can apply to Consumer, Trader and Tenancy Tribunal to decide the matter. Contact your local tenant's service for advice about what you need to do (see Contact Points).

If the landlord makes no claim on the bond, it should be paid in full to the tenants. In order for the RBB to release the bond, it will need authority from all the tenants registered with the bond — or if this is not possible, a statutory declaration from the current tenants in the house stating that they are legally entitled to the bond .

Problems can arise in share houses if there is a dispute between flatmates about how the bond should be divided. The difficulty is that the Rental Bond Board and the Consumer, Trader and Tenancy Tribunal can only deal with bond disputes between landlords and tenants, or head tenants and subtenants, and cannot assist with problems between co-tenants. For example, if one of your flatmates causes all the damage that results in money being taken out of the bond by the landlord, you will all lose your bond money not just the guilty tenant’s share. The only option you have in this situation is to try to come to an agreement with your flatmate to pay the lost bond to you as a debt — or if this doesn't work, take them to the Local Court to try to get the money back. However, going to court can be expensive and time-consuming and you will need to decide if the amount is worth the time and cost involved. Mediation with a community justice centre might help you reach an agreement without having to go to court (See Contact Points).

A co-tenant may not cash a bond cheque made out in the names of all the tenants without the authority of the other parties. If a flatmate does cash the cheque without the authority of the others, they could be charged with fraud. However, when it comes to getting your share of the bond back in this situation, again you would have to take your flatmate to the Local Court to try to recover the money as a debt.
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Subtenants

If you are a subtenant, your bond should be lodged with the Rental Bond Board by the head tenant. Unfortunately, it is quite common for head tenants not to lodge their subtenants' bonds and then decide for themselves whether to return the money at the end of the tenancy. This is why it's very important to get a receipt from the head tenant for your bond when you first give it to them. Then if there is a dispute when you are moving out, you have proof that bond was paid and can apply to the Consumer, Trader and Tenancy Tribunal for help if necessary.

Tell your head tenant that this is what you are going to do if this becomes necessary — and it might encourage them to return the bond without actually having to go to the Tribunal. If you do apply to the Tribunal, the matter can also be referred to the Rental Bond Board and your head tenant (like any landlord) could be prosecuted and fined for failing to lodge the bond — as well as having to return the bond to you if the Tribunal finds in your favour.
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Boarders and lodgers

A bond paid by a boarder or lodger does not have to be lodged with the Rental Bond Board and, as there is no landlord-tenant relationship, the Consumer Trader and Tenancy Tribunal cannot help if you have a problem getting the bond back at the end of the tenancy. Your only option if your landlord unfairly keeps the bond would be to try to recover the money as a debt through the Local Court, or in certain circumstances the General (Consumer) Division of the Consumer, Trader and Tenancy Tribunal Whatever you do, make sure you get a receipt when you pay the bond — at least then you have evidence if there is a problem getting it back. You should also try asking your landlord/head tenant to lodge the bond with the Rental Bond Board at the start of the agreement. Often they will be quite happy to do this even though they are not required to.
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One tenant in, one tenant out, tenancy agreement the same.

In share houses, flatmates often come and go without a new tenancy agreement being drawn up. What usually happens is that the tenant moving in pays the share of the bond of the tenant moving out, either to that person or to the people whose names are on the lease. If you do this, you should always get a receipt for any money paid. You should also arrange to have the names changed on the bond registration at the RBB. You can do this easily by completing a 'Change of Shared Tenancy Arrangement,' form available from the Rental Bond Board or Commonwealth Bank (See contact points). The form must be signed by the person moving out and the person moving in, as well as the remaining occupants and the landlord.

Another common but less formal method is for the person leaving to give you a signed letter saying that you have paid their share of the bond and it now belongs you. This letter will have to be shown to the Rental Bond Board when you claim the bond at the end of the tenancy.

If the original signatories to the bond have moved out and you have no proof that you have paid your share of the bond, you will have to sign a statutory declaration (available from newsagents) that you are legally entitled to the bond in order for it to be returned to you. A letter from the landlord or agent saying that they have been receiving rent from you and recognise you as a tenant will also help to convince the Rental Bond Board that the bond is yours. Consult the Rental Bond Board for further information (see Contact Points).
© Redfern Legal Centre 2005