All of the bond money should be returned to you at the end of the tenancy unless you owe the owner money for rent, damage, water or other costs you are responsible for.
If you owe money you should be paid the bond less anything you owe. You will have to pay the owner extra if you owe more than the bond money.
This sheet explains some things you need to do to get your bond back.
Under the Residential Tenancies Act (1987) , the security bond must be lodged in a joint account
See section 2.9 The Security Bond for more information.
One of two things must happen for the bond to be withdrawn from the account at the end of the tenancy:
The Joint Application for Disposal of Security Bond Form is called a Form 4. See the sample .
You should not sign the form if there is any dispute over who should get the money, or how much each party gets. Instead, either you or the owner/agent can apply for a bond dispute hearing in the Local Court. See section 5.2 Applying to the Local Court for a Bond Disposal Order for more information.
You and the owner/agent should negotiate bond deductions and agree on how much money each person will get BEFORE the form is signed. Never sign the form until the amounts are filled in. If you sign the form while the "please pay" sections are still blank you will lose negotiating power on the return of the bond. If you sign a blank form the owner/agent can deduct whatever amount they decide on. See "Sending a Letter of Demand" at the end of this section for more information on negotiation.
Never sign a blank form to release your bond. Make sure the application for refund of security bond section is filled in:
The bond money can be released when all parties agree on how the bond should be repaid and the form is completed.
The most important things to remember are:
The bond will be paid when the completed Joint Application for Disposal of Security Bond ( ) is presented (by the owner/agent or the tenant) to the place where the bond is held:
You can be immediately issued with a cheque for the amount written next to "Please pay tenant" on the form.
Under the Residential Tenancies Act (1987), real estate agents must return your bond within seven days of completing and signing the Joint Application for Disposal of Security Bond (Form 4). There is no time limit for owners to return the bond.
Sometimes owners/agents may give you excuses to delay the payment of your bond such as "it is being held up because we are waiting for the bank to clear its release", or "it is still in the computer". The bond withdrawal is like any other bank withdrawal - you hand the release form over and the teller hands back the cash, or a cheque. Make it clear that you know the hold-up is due to the owner/agent, and that you would like the money returned immediately.
If you're having difficulties in getting the bond money back, try to find out where the bond is lodged, as this will speed up the process. Information about where the bond money is being held will be on your copy of the form which should have been signed at the beginning of the tenancy. The Ministry of Fair Trading may be able to help you to get the account details from the owner/agent if you don't know where your money is being held.
If there are delays or you and the owner/agent can't agree you should send a "letter of demand" before signing the Bond Release Form to try to negotiate repayment of your bond money. If you are not successful you can take action in the Small Disputes Division of the Local Court.
The letter of demand is optional. You can apply directly to the Small Disputes Division of the Local Court. However, it is a good idea to write first as you may be able to use your letter or the owner/agents response to help you prepare for court or give as evidence. See section 5.2 Applying to the Local Court for a Bond Disposal Order for more information.
In your letter, give a reason for each claim you don't agree with. For example, the alleged damage was not your fault, or you are being charged too much to fix the problem - you may be able to make an offer to solve the problem. In the letter give the owner a deadline to reply and let them know you will take court action if they don't respond. You can ask the owner/agent to explain their reasons for withholding the bond money and provide copies of receipts for any work they claim to have had done and want to charge you for if you need more details.
A sample letter has been included in this sheet as a suggestion only. Make sure your letter includes all points which are relevant to your situation. Contact Tenants Advice Service to discuss your case if you're not sure what to say to the owner/agent.
If you didn't sign a Lodgement/Variation of Bond Money ( ) or a Record of Payment ( ) before you moved into the property the owner/agent has not lodged the bond according to the Residential Tenancies Act (1987). This means the owner/agent can get access to your bond money without your signature.
If your bond hasn't been lodged correctly you can write and demand the owner return it to you. You can also make a written complaint to the Ministry of Fair Trading asking that the owner be prosecuted for not complying with the Act. If prosecuted, the owner may be penalised $1000 (s.29).
If the owner refuses to return your money you can apply to court. Part of your argument to the court can be that the owner should not be allowed to benefit from the illegal action of incorrect bond lodgement. See section 5.2 Applying to the Local Court for a Bond Disposal Order for more information.
SAMPLE LETTER
Mr P Owner
15 Hill Street
West Coast WA 6666
31 February 1996
WITHOUT PREJUDICE
Dear Mr Owner
RE: Return of Bond - (the address of the rented premises)
I lodged with you (state $ amount of the bond) when I moved into the above property on the ..... (date you paid the bond). I vacated the property on the .... (date you moved out) and left the property in a state of cleanliness and repair (equal to/better than) when I moved in, less fair wear and tear. I therefore expect the bond money to be returned to me in full and disagree to your claim that you are entitled to $... (amount of bond owner/agent said they want to keep). I disagree with your claim for the following reasons:
(List here the things the owner is claiming and state why you do not agree with the claim. For example because the item was already damaged when you moved in, or was not in need of the repair/cleaning claimed by the owner, or you have already carried out the work (such as having the carpets professionally cleaned). Make sure you give full details of why you think each claim is unfair and include copies of receipts for any work you have carried out).
(Also list if there are deductions which you do agree shoud be taken from your bond. You can also agree to having work done and you paying for it in principle but query the cost being charged. You can ask for quotes if you think the amount being claimed is too high. If old items are to be replaced offer to pay only part of the cost of the replacement due to depreciation for the age or state of repair before the item was damaged during your tenancy).
I believe you are making unfair claims on my bond money. I agree to $x... (state the amount) being deducted from my bond to cover the expenses I agree to (if any). I will be happy to sign a joint application form to arrange for the disposal of my bond to this effect. If you are not agreeable to this, or I receive no reply from you within 7 days I will lodge an application for the return of my bond with the Local Court.
I look forward to your urgent reply.
Yours sincerely
A Tenant
(your forwarding address)
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