The quickest way to release the bond is when everyone agrees on how the bond should be paid out.
Property managers and landlords should:
- talk to their tenant about their claim before applying to release the bond
- let tenants know what claims are being made
- explain why each claim is being made.
This way the tenant is not surprised by any deductions during the release process.
A bond release will be referred for a Commissioner determination if someone on the bond:
- does not respond to the release application notice
- disagrees with how the bond is to be paid out.
When to provide evidence
Property managers, landlords and tenants will be invited to respond to the application if it is referred for a Commissioner determination.
This is when property managers and landlords should provide evidence for their claims. Tenants can also provide information about the claim too.
Evidence will be needed for each claim.
Property managers and landlords will need to show both:
- the tenant’s breach of the tenancy agreement or the Residential Tenancies Act (the Act)
- the financial loss the landlord suffered because of the breach.
Evidence should be complete, reliable and clearly support the amount being claimed.
Providing evidence does not guarantee the landlord will be paid the full amount claimed. All evidence provided is considered when deciding a claim.
The following will also be assessed:
- whether the property manager or landlord took reasonable steps to reduce the loss.
- fair wear and tear.
- whether the claim puts the landlord in a better financial position (betterment).
What is betterment?
A landlord can claim compensation for their actual loss. Betterment is when repairing or replacing tenant-caused damage leaves the landlord in a better position than they would have been in had the damage not occurred.
For example:
- A landlord paid $2,000 for a new fridge for the property 5 years ago.
- A tenant lived at the property for 1 year and damaged the fridge beyond repair.
- The landlord purchased a new fridge for $2,000.
- The landlord may not be entitled to claim the full cost of the replacement fridge.
- The amount that may reasonably be claimed will depend on the circumstances, including the age and condition of the damaged fridge, its remaining useful life, whether it could have been repaired, and the reasonable cost of an equivalent replacement.
In this example, claiming the full cost of a new item when the old item was already five years old may place the landlord in a better position than if the damage had not occurred.
Claim examples
The examples below show the types of evidence to support common claims. They are a guide only.
The examples relate to these claim categories:
The Commissioner can also require you to provide more information to help make a decision.
Property managers and landlords need to show the:
- property condition changed during the tenancy because of a breach by the tenant, allowing for fair wear and tear
- financial loss the landlord suffered because of the breach
Evidence of tenant breach
Property managers and landlords may provide:
- dated ingoing property condition report (PCR) showing the condition at the start of the tenancy
- dated outgoing PCR showing the condition at the end of the tenancy
- date-stamped photos or videos showing the condition at the start and end of the tenancy
- correspondence, reports or records showing what the damage is and when it occurred.
Evidence must clearly show or relate to the area or item the claim relates to.
Evidence of financial loss
Property managers and landlords may provide:
- an itemised invoice from a business with an ABN showing:
- what work was completed
- date of work
- address where work was completed
- the cost of the work.
- a quote showing the work and cost, with information about why the work hasn’t been completed.
- receipts for products the landlord bought if the landlord completed the repairs themself. landlords usually can’t claim for their own time if they did the repairs themselves.
Depending on the damage, repair or patching may be reasonable, while other damage may require replacement of a larger item or area.
Where replacement is proposed, property managers and landlords should provide information showing why a more limited repair is not practical. The Commissioner will consider whether the proposed work and the amount claimed are reasonable in the circumstances.
The Commissioner considers fair wear and tear and depreciation when deciding a claim. Property managers and landlords should provide information about the age or condition of the damaged item or area.
For example, information showing:
- purchase date such as an invoice
- maintenance and repairs previously made such as:
- servicing of garage door
- when walls were last painted
- when floors were laid or last resurfaced.
Property managers and landlords need to show the:
- property was not left in a reasonably similar state of cleanliness to when the tenant moved in, allowing for fair wear and tear.
- financial loss the landlord suffered because of this
Evidence of tenant breach
- dated ingoing PCR showing the cleanliness at the start of the tenancy
- dated outgoing PCR showing where cleaning was required at the end of the tenancy
- date-stamped photos or videos showing the cleanliness at the start and end of the tenancy.
Evidence should clearly show the areas the cleaning claim relates to.
Evidence of financial loss
Property managers and landlords may provide:
- itemised invoice from a business with an ABN showing:
- what cleaning was completed
- date of cleaning
- address cleaned
- cost of the clean.
- a quote showing the cleaning work and cost, with information about why the work hasn’t been completed.
- receipts for cleaning products a landlord bought if the landlord did the cleaning. Landlords usually cannot claim for their own time if they did the cleaning.
This claim category covers rent owed during the tenancy.
Property managers and landlords need to show:
- rent was still owing at the end of the tenancy
- the amount being claimed is a financial loss. This means the difference between the total amount payable for rent over the tenancy and the total amount of rent paid by the tenant.
Evidence of tenant breach and financial loss
- Tenancy agreement showing tenancy start and end date.
- Termination notice, court order, evidence of key return or other evidence that assists in establishing the tenancy end date.
- Records of rent paid during the tenancy e.g. a rental ledger.
The rental records should show for each payment the:
- rental home address
- purpose of the payment was for rent
- name of the person who made the payment
- date the payments were received
- amount paid
- rental period the payment covered.
Evidence must clearly show where a rental payment was missed or not paid in full.
Disputes about rent or tenancy end date
Property managers and landlords should also provide relevant information if there is a dispute about a rent increase or the date the tenancy ended.
These may include a:
- rent increase notice to tenant
- lease change or renewal which included a rent increase
- termination notice or other evidence showing when and how the tenancy ended.
Unpaid utilities
Property managers and landlords will need to show:
- the tenant was responsible for paying utility usage charges
- the property manager or landlord gave the tenant written notice of charges within 30 days of receiving the utility bill, or any other applicable timeframe
- utility usage charges were still owing at the end of the tenancy.
Evidence of tenant breach and financial loss
Property managers and landlords may need to provide a copy of the:
- tenancy agreement or other record showing:
- the tenancy start and end dates
- how the utility usage costs were charged, such as separately metered or an agreed calculation method
- termination notice, court order, evidence of key return or other evidence that assists in establishing the tenancy end date
- records showing the tenant was given notice of the utility usage charges in the required time
- utility service provider’s invoice showing the billing period and usage cost
- evidence showing how the claimed amount matches the agreed calculation method, if the utility was not separately metered.
The Commissioner cannot approve a landlord’s claim for unpaid utilities based on an estimate of consumption from previous bills. Property managers and landlords need to calculate the actual amount owing and payable based on:
- the service provider’s invoice for the relevant period
- if the utility is not separately metered, evidence the charge is for the relevant period, based on the agreed calculation method.
Property managers, landlords and tenants can still use estimates to reach their own agreement about the claim.
The Commissioner can require property managers, landlords and tenants to provide further information or evidence under the Act.
Anyone on the bond may be asked for more information when:
- a claimed amount isn’t clearly explained or calculated
- key evidence is missing, unclear or inconsistent
- the property condition reports or photos don’t clearly show the condition before and after the tenancy
- there is not enough information to support the claim
- it is unclear if the issue is tenant damage or fair wear and tear
- invoices, quotes, rent ledgers or utility bills don’t support the amount claimed
- the evidence doesn’t clearly link the tenant’s actions to the claimed loss
- one of the parties need a fair opportunity to respond to information provided by another party.
More help
Guidelines are available to help property managers, landlords and tenants when a bond release application is being decided by the Commissioner.
See the Commissioner's Guidelines - Bond Disputes in a Rental