Real Estate Juice Magazine 2 | Page 125

Bond top-up

Where a tenant has leased a property for a number of years, the bond will no longer be in line with the market. This creates difficulties for landlords who need to carry out repairs at current market prices when the tenant vacates.

Recommended: A bond top-up option be allowed where a tenant has occupied a premises for more than three years. This not only protects the landlord, but also the tenant by ensuring no financial hardship or surprise in relation to the bond amount when finding a new premises.

Pet bond

Prospective tenants with pets are often overlooked by landlords.

Recommended: To level the playing field for all prospective tenants, a pet bond should be introduced. Prospective tenants regularly offer to pay landlords a pet bond, even though the legislation does not currently require it.

Higher bonds by consent

Some prospective tenants have no previous rental history and have a limited ability to demonstrate their capacity to be a good tenant. They are seen as high risk by landlords.

Recommended: Landlords be permitted to accept a higher bond amount with the tenant’s consent.

Furnished property bond

Landlords see risk in leaving their furniture when moving interstate or overseas, because the bond amount is too low to cover the cost of any damage. So they often choose to store their furniture and pay removalist fees, rather than lease the premises furnished. Having more furnished property on the rental market creates greater choice for prospective tenants.

Recommended: The furnished property bond be reinstated at the equivalent of at least six weeks’ rent.

#4 Rental Arrears

The current provisions relating to termination for rental arrears and late payment of rent do not strike the right balance between the interests of the landlord and those of the tenant.

Cont'd