Charging a bond

It is common place with holiday rentals to charge a bond or security deposit. Unfortunately sometimes you may not have the most honest of tenants or an accident may happen that causes damage to your property. Charging a bond provides some impetus for your tenant to look after your house so they get the money back. It also provides you with the ability to use the money to make any repairs or replace missing items.

Unfortunately I have heard stories of everything from doonas to TVs going missing and windows to microwaves being broken!

If you are using an agent they will put the bond in a trust account for return to the tenant after an inspection of the property. If you are managing the property yourself you do not need to place the bond in a trust account but you must return the bond in a reasonable time after the stay providing your property has been left in good order.

How much to charge? This will depend on the market you are in and how well you know your tenants. A standard amount is $500 but you may wish to reduce that to $200 or less for return customers. Conversely, a $2000 bond may be more appropriate if you have a group of school leavers or University students renting your property.


Additional information