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What is my legal position? |
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Your rights and responsibilities as a tenant |
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Tips for avoiding legal problems |
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The different tenancy relationships - pros and cons |
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Going to the Consumer, Trader and Tenancy Tribunal |
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The
bond |
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). |
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