Latest News

REINSW lodges bond rental submission

11 November 2016

REINSW has made a submission to NSW Fair Trading about their proposed amends to the online rental bond service, and called for improvements to make it easier to use.

NSW Fair Trading is proposing to amend the Residential Tenancies Act 2010 to encourage the use of the online rental bond service.

REINSW supports the introduction of the proposed section 159(1A) of the Act, however is concerned that the release of the bond causes complexity for the tenant and landlord.

It believes that the current online bond system does not enable enough time for the tenant and landlord to communicate about the bond.

REINSW CEO Tim McKibbin said: “Whilst REINSW welcomes a system that decreases the administrate burden imposed on small business operators, one of the main reasons why agents are not utilising the online rental bond system is because of the insufficient refund process at the back end of the system.”

REINSW did applaud the checklist feature for the tenant to complete before applying for the bond. However it recommends it is improved by including a seven day grace period upon leaving the property to prevent both parties from making a claim without mutual consent.

What is the proposed amendment?

The proposed amendment to section 159 (1A) requests that a landlord or landlord’s agent, or any other person does not require or receive a bond from a tenant unless:

  • The landlord or landlord’s agent is a registered user of the online rental bond service under section 157A
  • The tenant has been invited by the landlord or the landlord’s agent to provide an address to deposit the rental bond with the secretary by using the online service.

If the tenant has provided an address:

  • The landlord or landlord’s agent has invited the tenant to deposit the rental bond with the secretary by using the online service
  • The tenant has been given a reasonable opportunity to deposit the rental bond with the secretary using the online service or has declined the invitation.

REINSW put together its submission with the help of its Property Management Chapter Committee.

To download the submission (PDF) please click here .