Dealing with bond disputes for tenants

When a landlord or agent can make a claim

A landlord or agent may make a claim on the bond if a tenant:

• owes money for unpaid rent
• has broken the lease early and there is a break fee
• has not cleaned the property to the same standard as the start of the tenancy
• has not returned the keys or other security devices and locks need replacement.
• has left the property with damage beyond fair wear and tear.
• has unpaid water usage costs (if landlord has requested payment within 3 months of getting the bill).

Note: This is not a complete list. There may be other legitimate reasons for a landlord or agent to make a claim against your bond. 

A landlord or agent may make a claim without tenant's agreement

If the landlord or agent wants to make a claim from the bond without a tenant's agreement, they must give the tenant:

• a copy of the condition report completed at the end of the tenancy
• copies of estimates, quotes, invoices or receipts for work they are claiming

within 7 days of making the claim.

Copies of these documents also need to go to Department of Communities and Justice - Housing (DCJ Housing) if they paid all or part of the bond.

Not providing these documents within the time required can lead to penalties for the landlord or agent.

How will a tenant know that their landlord has made a claim?

If an amount of the bond is being claimed by the landlord or agent, the tenant will get an email and SMS with the Notice of Claim, with a 14-day notice period to respond. For a bond that was lodged on paper, a tenant will get the notice mailed to them.

What can the tenant do?

The tenant can accept the claim in Rental Bonds Online for an online bond. However, there are further steps to take (see below) if there is a dispute.

What if things go wrong?

Resolving a dispute

You should make sure that:

• the property is in its original condition and
• that you have paid all your rent.

You should talk to your landlord or agent about what could be done to solve any issues and try to come to an agreement.

The Tenants' Union of NSW has tips on negotiating with your landlord that may help.

If you have negotiated an agreement with your landlord or agent, they should then pay the claim within 14 days.

If you still do not agree

If the landlord or agent does dispute your claim, they must apply to the NSW Civil and Administrative Tribunal (NCAT) within 14 days of receiving the notice and tell Fair Trading in writing that they have done so.

The Tribunal will decide how the bond will be paid out.

Freezing the bond during a dispute

After you make an application to the Tribunal, the next step is to log in to Rental Bonds Online before the 'due for payment' date. By doing this, you can advise Fair Trading that you have lodged a dispute to make sure that the bond is frozen, pending the outcome of the hearing or agreement of all parties.

If the bond claim was lodged on paper, you should complete the slip on the bottom of the notice of claim form and follow the steps on the form to return it to Fair Trading before the due for payment date so the bond can be frozen.

Going to the Tribunal

The Tribunal is set up to hear both sides of the story about tenancy disputes. This includes disagreements about bond refunds.

Tenants can go to the Tribunal even if the bond has already been paid out, as long as it is within six months of the payout. The landlord can also go to the Tribunal, with the same time periods applying.

Tenants need to provide details with evidence about their claim, including:

• the reasons why they should be paid all or part of the rental bond
• whether the bond was not lodged with NSW Fair Trading
• if the bond was already paid out.

How to apply

• Apply to the Tribunal online or
• Download and complete a Tribunal application form. Lodge the paper application form at any Tribunal Registry or Service NSW service centre.