Smart Rental Bonds

Smart Rental Bonds will allow renters to transfer a rental bond from an existing rental property to a new rental property. There is no change for landlords.

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Smart Rental Bonds overview

Smart Rental Bonds allows tenants to transfer the bond from their current rental property to a new rental property. It is an optional cost-of-living relief measure coming to NSW to make it easier for renters when moving.

This means renters won’t need to set aside a large amount of money for a new bond before the bond for their current rental property is released.

1:08

Smart Rental Bonds animated explainer

Discover how Smart Rental Bonds makes renting easier and more affordable for renters, with no impact to landlord security.

Read transcript
Video transcript

Smart Rental Bonds animated explainer

Moving house can be expensive and stressful, especially when you need to pay a new bond before the old one is refunded.

That’s where the NSW Government’s Smart Rental Bonds can help.

Smart Rental Bonds allows renters to transfer the bond from their current rental property to a new rental property.

When using Smart Rental Bonds, renters will pay an application fee. Renters may also need to pay additional funds if the new bond is higher than your current bond.

If a deduction from the original bond is to be paid to the landlord, the Government will pay the landlord directly. Then the renter pays the Government back.

This retains the security of the current bond process for landlords while reducing up front financial pressure of paying two bonds at once for renters.

Discover how Smart Rental Bonds makes renting easier and more affordable for renters with no impact to landlords security.

Register your interest in Smart Rental Bonds

Smart Rental Bonds will be available soon. To be the first to know, complete the expression of interest form.

Register your interest

How to access Smart Rental Bonds

To access Smart Rental Bonds, renters will need to:

  • be moving between 2 rental homes in NSW
  • use Rental Bonds Online
  • have an existing rental bond linked to a Rental Bonds Online account and tell the landlord or agent about their existing account
  • be moving to a new rental property in NSW with the same tenants as the current rental property
  • be vacating the current rental property within 4 weeks of entering the new rental property
  • be over 18 years of age
  • be a natural person (for example not a company or corporation)
  • pay the Smart Rental Bonds fee and any additional money toward the new bond if required.

When Smart Rental Bonds cannot be used

Smart Rental Bonds cannot be used if:

  • there is a claim in progress on the bond the renter wants to transfer (read an example where the landlord makes a claim before the renter requests a transfer)
  • members of a share house are moving to different houses
  • a renter has requested to transfer a bond but the transfer process has not been completed within 4 weeks of moving into the new home
  • a renter has a RentStart bond loan for all or part of the bond and there is money owing to Homes NSW
  • a renter owes money to NSW Government for a previous transfer
  • the bond is a retail bond.

Steps to transfer a rental bond

The key steps for transferring a bond will be:

1

Renter notifies landlord or agent that they have an existing Rental Bonds Online account

The renter advises the landlord or agent for the new home that they have an existing Rental Bonds Online account.

2

Landlord or agent submits the pending bond lodgement

The landlord or agent enters the details for the new bond and submits a pending lodgement. The system sends an email with a unique code to the renter.

3

Renter selects the option to transfer their bond

The renter logs in to Rental Bonds Online, enters the unique code for the new bond and selects the option to ‘transfer your bond’.

4

Renter pays Smart Rental Bonds fee and additional bond money

The renter chooses their preferred payment method and pays:

  • $25 fee
  • additional bond money, if the new bond is more than the original bond.
1:35

Smart Rental Bonds demonstration

Learn what transferring a bond could look like in Rental Bonds Online. Screen content and appearance may change before Smart Rental Bonds launch.

Read transcript
Video transcript

Smart Rental Bonds demonstration

Linda recently applied for a new rental property, and her bond lodgement was initiated by the agent in charge of the new property through rental bonds online.

Linda received an email from the system with the temporary bond code, which she pasted into the pay or transfer a bond field in rental bonds online.

By clicking Pay or Transfer a bond we’re taken to the next page, which details information about the new rental property. This includes the premises, address and the new bond amount which we must pay.

By clicking continue, Linda will need to read all the details on this page, including the terms and conditions of using rental bonds online, before agreeing, and continuing to the payment page.

On the payment page. Linda can once again review details of the premises, the bond amount, and is then presented with the option to transfer her bond. If Linda would like to transfer an existing bond, she would select yes and the previous bond would display on the screen.

By clicking the radio button, the payment summary section updates to show the new bond amount, the previous bond amount that will be covered, the remaining bond, and the fee associated with Smart Rental Bonds.

Before continuing to the next screen, Linda will need to agree to the Smart Rental Bonds consent form by going through the four different sections reading and understanding before agreeing by clicking all of the checkboxes to confirm the transfer. Linda will then be taken to the payment screen to process the payment.

5

Claim on original bond is submitted

The renter and the landlord or agent agree on any deductions to be paid to the landlord or agent from the original bond.

Either the renter, landlord or agent submits a claim on the original bond in Rental Bonds Online. A claim must be submitted within 4 weeks of the renter requesting to transfer their bond to a new home.

Here are some examples of how bond claims and disputes are managed during a transfer:

6

Agreed bond deductions are paid out

After the bond refund request is submitted, agreed deductions are paid to the landlord or agent.

7

Renter receives an invoice or refund for any difference in the bond amounts

After agreed deductions are paid to the landlord or agent, the renter will receive an invoice or a refund for any difference between the new bond and the remainder of the original bond.

Remaining bond amount is less than the new bond

If the remainder of the original bond is less than the new bond, Revenue NSW will issue the renter an invoice for the difference. The renter must pay the invoice within 28 days or Revenue NSW will commence recovery action.

Once the renter pays the invoice in full, the transfer process is complete.

Here are some examples where the renter will receive an invoice from Revenue NSW:

Remaining bond amount is more than the new bond

If the remainder of the original bond is more than the new bond, the difference will be refunded to the renter and the bond transfer process will be complete.

Read an example where the renter receives a refund.

How Smart Rental Bonds impacts landlords and agents

There is no change for landlords and agents.

  • The NSW Government will pay any agreed deduction to the landlord, and the tenant will pay back the Government.
  • The process for paying agreed deductions to landlords remains the same.
  • Dispute processes through NSW Civil and Administrative Tribunal (NCAT) remain the same.

The processes landlords and agents use to lodge and claim bonds in Rental Bonds Online will not change. Landlords and agents should continue to check if a renter has an existing Rental Bonds Online account before submitting a pending lodgement.

We encourage agents to understand how Smart Rental Bonds works so you can confidently support tenants and landlords while maintaining continuity and simplicity in the existing bond process.

Examples showing how Smart Rental Bonds will work

Here are some examples showing how transferring a bond will work in different situations.

New bond is higher and there is a claim on the original bond

Jasmine moves from an apartment in Wagga Wagga to a unit in Orange and transfers her bond using Rental Bonds Online. Her original bond is $2,000 while the bond required for the Orange unit is $2,400.

To transfer the bond, Jasmine pays the $400 difference between the two bonds, plus a $25 Smart Rental Bonds fee, totalling $425 upfront. Her existing $2,000 bond is then transferred to meet the $2,400 requirement for the new property.

After the Wagga Wagga tenancy ends, her landlord makes an $800 claim against the original bond, which Jasmine agrees to.

Outcome: The Wagga Wagga landlord receives the agreed $800 from the NSW Government. Revenue NSW issues Jasmine with an invoice for the $800 paid on her behalf which she must pay within 28 days.

The new bond is less than the original bond

Liam moves from a rental in Tamworth to a smaller unit in Armidale and transfers his bond using Rental Bonds Online. His original bond is $2,400, while the bond required for the Armidale unit is $2,000.

Because the new bond is less, Liam pays the $25 Smart Rental Bonds fee and his existing $2,000 bond is then transferred to pay the bond for the new property. The $400 difference is held pending the outcome of any claim on the bond for his Tamworth tenancy. If the Landlord does not make a claim for part of the bond, the $400 is paid to Liam.

Outcome: Liam receives a refund of $400 and the bond transfer process is completed.

The new bond is less than the original but there is a claim on the original bond

Sienna moves from a rental in Coffs Harbour to a smaller unit in Grafton and transfers her bond using Rental Bonds Online. Her original bond is $2,600, while the bond required for the Grafton unit is $2,300. Sienna pays the $25 Smart Rental Bonds fee and her existing $2,300 bond is transferred to the new property. The $300 difference is held pending the outcome of the bond refund for her Coffs Harbour tenancy.

Outcome: After Sienna moves out of the Coffs Harbour rental, the landlord makes a $350 claim against the original bond, which Sienna agrees to. The landlord is paid the $300 difference which is already held along with $50 from the NSW Government. Revenue NSW issues Sienna with an invoice for $50, which she must pay within 28 days.

The renter disputes a claim on the original bond

Jenny is moving from her apartment in Parramatta to a new rental in Newtown and transfers her existing bond to the new property. After she moves out of her Parramatta rental, her landlord lodges a claim for cleaning costs. Jenny disagrees with the amount claimed and formally disputes it through the NSW Civil and Administrative Tribunal (NCAT).

Outcome: The dispute does not affect the transfer of the bond to the Newtown property.  The disagreement about the claim amount is handled through the usual NCAT dispute process. If the claim is later agreed to by Jenny or ordered by NCAT the NSW Government will pay the landlord of the Paramatta rental the approved amount. Revenue NSW will then issue Jenny with an invoice, which she must pay within 28 days.

The landlord makes a claim on the original bond before the renter starts the bond transfer

Marcus is moving from a rental property in Newcastle to a new place in Maitland and wants to transfer his bond. When he goes to apply, he finds that a bond refund request on his original bond is being processed as he has already vacated the Newcastle rental and the landlord has completed the final inspection and lodged a claim in Rental Bonds Online.

Outcome: Because there is an active claim in progress on the original bond, Marcus is unable to transfer the bond.

A share house moves together and takes their bond with them

Aisha, Tom, and Priya are all named on their current lease in Wollongong with Aisha as the principal tenant and Tom and Priya as co-tenants. All three contributed to the bond. They are moving together to a new rental in Thirroul, and all three will be on the new lease in the same arrangement.

Outcome: Because the same tenants are moving together, they can transfer the bond providing all other Smart Rental Bonds requirements are met. If Tom decided not to move, then the bond cannot be transferred, and a new bond would need to be paid for the Thirroul rental.

A share house changes tenants and then moves to a new home

Mei, Jackson, and Noor are named on their current lease in Dubbo, with Mei as the principal tenant and Jackson and Noor as co-tenants. Two months before the end of the tenancy, Jackson moves out. Mei and Noor stay on and complete a change of shared tenancy so the lease and bond record are updated to remove Jackson.

Outcome: After the change of shared tenancy is completed, Mei and Noor can move together to a new rental in Bathurst and transfer their bond using Smart Rental Bonds, as long as all other Smart Rental Bonds requirements are met.

Frequently asked questions

Why is there a Smart Rental Bonds fee?

The application fee helps to cover the administrative costs of running Smart Rental Bonds.

Do I have to declare on my rental application that I am transferring my bond?

No, tenants are not required to disclose how they will be intending on paying a bond. This is a private transaction between the tenant and NSW Government.

Is the landlord or real estate agency notified when a tenant wants to transfer their bond?

No. Landlords and agents will not be notified if a tenant has transferred their bond.

Related information

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