NSW Rental Bond Cheatsheet

Register your bond with Rental Bonds Online (RBO), a service offered by NSW Fair Trading.
RBO stores your bond money in escrow so that your landlord can only take your bond if a formal claim has been made (which you can contest).

If you give bond money directly to your landlord or agent your bond rights still legally apply, but it is much easier for them to unlawfully take your bond.
If you are asked to pay your bond in cash directly to a landlord or agent, you should instead suggest using RBO. A landlord/agent refusing to lodge bond through RBO should be treated with suspicion and ideally avoided.

Communications throughout the tenancy can be important evidence during a bond dispute. Emails are ideal, as they automatically record date, time, and recipients, and they are also stored on a searchable server.
If communication is done verbally, you should follow up with an email to the landlord/agent confirming the notable things discussed. Note: NSW law requires that both parties consent to an audio recording of a conversation.

A condition report is a document that states the condition of the property's features at the beginning and end of the tenancy, as seen by tenant and landlord/agent. The condition report form can be found here.

Condition reports are a requirement for tenancies and form an important piece of evidence in many bond disputes.
It's important that you carefully review the landlord/agent's report and disagree and comment where necessary. Ensure you document your disagreements both in writing and with photographs.

Photos are an important piece of evidence in many bond disputes, and you should always take photos at the start and end of the tenancy. Here are some tips for taking photos of the property:

• Take the photos before moving in and after moving out. Furniture can obscure walls and surfaces, so it's good to take the photos when the property is empty.
• Take photos of everything. For each room, take a photo of each wall, the floor and ceiling. Also take a close-up photo of any fittings like light switches, powerpoints, and taps.
• Add a date-stamp to the photos if you can. The date a photo was taken can be significant in a bond dispute, and it is much easier if the date is stamped on the photo itself.

The final inspection is a walk-through of the property by the landlord/agent to ensure the property is left in a similar condition to when the tenancy began.
The out-going condition report should be filled based on the final inspection. Ideally, your photos of the property will be taken on the same date as the final inspection, or as close to it as possible.

The landlord/agent must give you an opportunity to attend the final inspection - and you should attend.
By the end of the final inspection, the landlord/agent should either accept the property in its condition or identify the damage they believe the property has sustained.

The property should be empty and clean by the final inspection.
Note: there is no obligation to have the property professionally cleaned, unless otherwise stated in the lease agreement. The standard expectation is for the property to be as clean as it was at the beginning of the tenancy, with reasonable wear and tear.

The bond refund request can be submitted through RBO by either the tenant or the landlord/agent.

• If the landlord/agent doesn't identify any damage, you should request the entire bond through RBO as soon as the final inspection is complete. It is reasonable to request the bond back if the landlord/agent cannot identify claimable damage during the final inspection.
  
• If the landlord/agent states that there is damage and/or cause to withhold bond, or if they are unsure and will "get back to you", urge them to identify the damage and be specific. It is reasonable for the landlord/agent to not know the cost of the damage (as this must be quoted by professionals), but it isn't reasonable for them to refuse to identify the damage itself.

If the landlord/agent is asking for a portion of your bond, but you disagree with their reasons, you should request the portion of the bond you think is fair as soon as possible. It is free to request a refund but there is a fee for countering a landlord's claim, i.e. if the landlord claims a portion of the bond you will need to pay a fee to refute this claim in front of the tribunal.

Fair Trading lists the following as the main reasons for landlords to claim a portion of your bond (there may be other valid reasons):

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

Damage is the result of negligent, irresponsible or intentional actions by the tenant.
Fair wear and tear is the deterioration that occurs over time to the property through normal use.

Tenants are responsible for compensating the landlord for damage, but not fair wear and tear.

Fair Trading provides these examples of damage and fair wear and tear:

The East Area Tenants Service provides a comprehensive list of examples of real cases in the tribunal of damage vs fair wear and tear.

Tenants are expected to leave the property as clean as when they moved in, not including fair wear and tear.
There is no obligation to have the property professionally cleaned, unless otherwise stated in the lease agreement. The most common reason for a professional clean to be warranted is when pets have been present, where the lease may require a steam-cleaning of carpet.