Conveyancing Tips – DIY Landlord – Collecting a Bond

Conveyancing Parramatta – Do it yourself renting and property management

So you are considering renting your property but not through a real estate property management agent. Instead, you’re going to rent your property yourself. Well done! However, be aware that this will not be as easy as ‘just putting up a sign!’.

The Residential Tenancies Act places a number of obligations on you as the landlord, before, during and after the rental period. You should even consider that the NEW changes to the Residential Tenancies Act that came into effect on 31 January 2011 place even more obligations on landlords and makes it even more ‘difficult’ for do-it-yourself renting and property management. If you want to know more, have a look at our previous article titled ‘The NEW Residential Tenancies Act’ or visit the NSW Fair Trading website.

One key aspects of renting property is collecting a bond. Rental bonds is not compulsory, but it is a widely accepted form of security that you can collect from the tenant to ensure compliance with the rental agreement. You cannot collect more than 4 weeks’ rent, and any amount that you do collect must be lodged with NSW Fair Trading – you cannot keep the money yourself. You must order a Rental Bond Lodgement Form directly from NSW Fair Trading (as each form contains a unique number) to lodge your bond with them, and you must lodge it with them within 10 business days from receiving it. Be aware that you can be find if you do not comply with your obligations under the bond requirements – so when in doubt, always seek professional assistance or advice.

Look out for our other articles on conveyancing and property transactions in New South Wales. We are property lawyers in Parramatta providing fixed fee conveyancing services and updates in property law.