To Do if Your Bond Is Unfairly Withheld: Property & Leasing Law
When renting a property in Australia, tenants are usually required to pay a bond (also known as a rental bond or security deposit) at the beginning of their lease. This bond is designed to cover any damage to the property, unpaid rent, or other breaches of the lease agreement. However, disputes often arise when a landlord or property manager unfairly withholds the bond at the end of a tenancy.
Understanding your rights under Property & Leasing Law is crucial in these situations. This guide will explain what you can do if your bond is withheld unfairly, how to challenge the decision, and the steps to take to ensure you receive what you are entitled to.
Residential Tenancies Bond Authority (RTBA) in Victoria
Rental Bond Board in Queensland
This ensures transparency and prevents landlords from pocketing the bond without accountability.
Importantly, under Australian Property & Leasing Law, landlords can only make legitimate claims on a bond. Valid reasons include:
Unpaid rent
Property damage beyond reasonable wear and tear
Failure to maintain the premises as outlined in the lease
Unpaid utility bills (if specified in the agreement)
Anything outside of these categories, such as withholding the bond for professional cleaning when the property was left in reasonable condition, may be considered unfair.
Common Reasons Bonds Are Unfairly Withheld
Tenants often face bond disputes due to misunderstandings or misapplications of the law. Some common examples include:
Normal wear and tear being mistaken for damage (e.g., faded paint, minor scuff marks).
Excessive cleaning charges even when the property has been left tidy.
Disputes over garden maintenance beyond what was reasonably expected in the lease.
Unsubstantiated claims by landlords without proper evidence such as photos or receipts.
In these cases, tenants have the right to dispute the claim and seek the return of their bond.
Steps to Take if Your Bond Is Withheld
If you believe your bond is being unfairly withheld, here are the steps to follow:
Review the Lease AgreementCarefully read your lease and compare it against the landlord’s claims. Ensure that the issues they raise are actually breaches of your obligations.
Request a Detailed ExplanationUnder most tenancy laws, landlords must provide a written statement outlining why they are withholding part or all of the bond. If this has not been supplied, ask for it.
Gather EvidenceProtect yourself with documentation. Evidence may include:
Entry and exit condition reports
Photos of the property before and after your tenancy
Receipts for professional cleaning, repairs, or rent payments
Negotiate with the LandlordIn many cases, disputes can be resolved through direct communication. If the landlord’s claim is minor, you may reach a compromise without escalating the matter.
Lodge a Dispute with the Bond AuthorityIf negotiation fails, you can lodge a dispute with the relevant bond authority in your state or territory. For example, in New South Wales this is done through NSW Fair Trading.
Apply to the TribunalIf the matter cannot be resolved through the bond authority, you may need to apply to the state tribunal (such as the NSW Civil and Administrative Tribunal or VCAT in Victoria). The tribunal will assess the evidence from both parties and make a legally binding decision.
How Property & Leasing Law Protects Tenants
Australian Property & Leasing Law aims to balance the rights of both landlords and tenants. Tenants have legal protection against unfair treatment, including:
Landlords must lodge the bond with the appropriate authority.
Claims against bonds must be supported by evidence.
Tenants are entitled to challenge any claims they believe are unjust.
Independent tribunals exist to settle disputes fairly.
Knowing these protections empowers tenants to stand up for their rights and challenge unfair bond withholdings.
Preventing Future Bond Disputes
To minimise the risk of bond issues in the future, tenants should:
Complete and keep copies of condition reports at the start and end of the tenancy.
Take clear photographs of the property.
Keep written communication with landlords and property managers.
Ensure all payments (rent, utilities, cleaning) are documented with receipts.
Being proactive can save you from lengthy disputes when your lease ends.
When to Seek Legal Advice
While many bond disputes can be resolved through negotiation or with the bond authority, some situations may require legal assistance. This is especially true if:
The landlord is making unreasonable or large claims.
You are being pressured or intimidated into accepting unfair deductions.
The dispute escalates to the tribunal and you need representation.
A solicitor experienced in Property & Leasing Law can help protect your rights and guide you through the process to achieve a fair resolution.
Having your bond unfairly withheld can be frustrating, but you do not have to face it alone. Australian Property & Leasing Law provides tenants with strong protections, and there are clear steps you can take to dispute unfair claims and recover your money.
If your bond has been unfairly withheld, don’t let the process overwhelm you. Our expert Property & Leasing Law team is here to guide you through bond disputes, negotiations, and tribunal hearings. Protect your rights and secure a fair outcome—
