Rental bonds in the ACT: paying, getting it back and disputes

How much bond and rent in advance

• Bond: no more than the first 4 weeks’ rent, and only one bond per agreement (sections 20 and 21). A lessor doesn’t have to ask for one.
• Rent in advance: a lessor can’t require more than 2 weeks’ rent in advance, unless you choose to pay a longer period (standard term 28).
• No other charges for signing, renewing, keys, or being told about a vacancy (section 15). Holding deposits are banned (section 18).
• Guarantees: the law allows a guarantee instead of, or as well as, a bond, but only up to the same 4-week limit. The Renting Book says there are currently no registered commercial bond alternatives in the ACT.

Lodging the bond

Your bond is held by the ACT Government, through the ACT Revenue Office’s Rental Bonds team (the law and older documents call it the Office of Rental Bonds). It must be lodged (section 23 and Regulation section 2):

• within 2 weeks if you paid it to the lessor, or
• within 4 weeks if you paid it to an agent,

counted from the later of the day you paid and the day the tenancy started. Not lodging a bond is an offence. You and your lessor can agree that you lodge it yourself.

Keep your receipt, and keep your contact and bank details up to date with ACT Rental Bonds. The Renting Book warns that out-of-date details can mean the bond is paid out without you knowing.

What a lessor can claim from the bond

Only these (section 31):

• the reasonable cost of repairing damage you caused, beyond fair wear and tear
• the reasonable cost of securing the home if you don’t return the keys
• rent owing when the tenancy ends
• the reasonable cost of replacing fuel (gas, oil, wood) the lessor supplied
• reasonable legal fees for transferring the lease to someone else
• an amount under a lease term that ACAT has endorsed

“Fair wear and tear” isn’t defined in the Act. The Renting Book says there’s no fixed definition: it depends on how the damage happened (everyday use, such as sun-faded carpet or wear in high-traffic areas) and how serious it is (a scuff versus a hole in the wall). See moving out and the final inspection.

Getting your bond back

When the tenancy ends, the lessor must give you a bond release form they’ve signed (section 34):

• within 3 working days, if you’re getting the full bond back, or
• within 10 working days, if they’re claiming for damage or keys, with written reasons and a written cost estimate.

Then:

• If you agree, sign it and it’s paid out as set out.
• If you don’t agree, don’t sign it. You can apply for the bond yourself (section 34B). The Rental Bonds team will tell the lessor, who has 2 weeks to dispute.
• If the lessor applies without you, you’ll be notified and have 2 weeks to lodge a notice of dispute. If you don’t respond in time, the bond is paid out as claimed.

In a share house, the lessor can give the form to just one co-tenant. See share houses.

Disputing a bond claim

If a dispute is lodged within 2 weeks, the Rental Bonds team pays out any amount that isn’t disputed and refers the rest to ACAT (section 35). You don’t need to make your own ACAT application. ACAT then:

1. sends you a conference notice
2. requires the lessor to give you and ACAT a list of their claims at least 7 days before the conference
3. lists a hearing if you don’t agree at the conference

Useful evidence includes your lease, both condition reports, photos from moving in and out, quotes and receipts, and a timeline. A lessor can’t recover losses they could reasonably have avoided (section 38). See how ACAT tenancy applications work.

Help with a bond

The Renting Book describes a Rental Bond Help Program that can lend eligible people on low or moderate incomes up to 100% of the bond, interest free, repayable over 24 months. Check eligibility with the ACT Government.