Moving out is one of the more stressful aspects of life as a renter. This is especially true as the cost of living in Australia continues to skyrocket and strain the rental market. That’s why you’ll want to do everything possible to ensure you get your security deposit (also referred to as a rental bond) back.
What is a security deposit?
A security deposit is a sum of money, equal to four weeks’ rent in the NT, that tenants are required to pay before moving into a property. It safeguards landlords against potential damages, unpaid rent, or other financial obligations you may incur during the lease.
The security deposit is submitted to your state or territory’s bond trust and is held throughout the lease term. If the tenancy ends without issues, you’ll receive a full refund of the security deposit. However, the landlord can use the bond to cover their losses if there are damages or unpaid obligations.
Note: In the NT, there isn’t a bond authority. Instead, the security deposit is held within a trust account managed by the Property Management body.
It’s always preferable to have your security deposit returned in full. When providing tenant references, a rent ledger is often provided and shows any deductions from a bond. If there is anything to be paid after you vacate a property, it’s worth considering paying an invoice, rather than having the expenses deducted from the security deposit.
Here’s how to ensure you get your security deposit back
Review your lease
Remember, your lease is a contract. That’s why knowing what you’re committing to when you sign yours is important. Most people don’t have experience reading legal documentation, but that shouldn’t stop you from understanding the essential details before putting pen to paper.
Your lease will specify the condition in which you must leave your property when you move out. Many leases will require you to leave your property in the same condition as when you moved in. It may also stipulate if you need carpet cleaning, any additional cleaning requirements for tenants who have kept pets on the property, and more.
If your property is not left in the required condition at the end of your lease term, then the landlord can use part or all of your security deposit to cover the cost of any necessary cleaning and repairs. This is one of the most common tenancy disputes you may face.
Be thorough in your condition report
It’s easy to get swept up in the excitement of moving into your next home. The condition report is often the least of your priorities, and it’s very tempting to neglect it.
A condition report documents the property’s condition room by room, including fixtures and fittings, at the beginning of your tenancy. Your condition report will first be conducted by your property manager. They’ll do a thorough walk-through, noting and photographing the state of your property right down to the smallest details.
But your property manager is only human and may miss something. Legislation permits tenants several days to check the condition report they provide. It’s in your best interest to look over the property yourself, leaving no stone (or door handle) unturned.
Completing your side of the condition report is your opportunity to ensure you’re not held accountable for any pre-existing damage to the property at the end of your tenancy. If any pre-existing damage was missed in the condition report, the landlord may use some or all of your security deposit to address the issue.
Report and repair damage as it happens
General wear and tear is an inevitable and accepted part of living in a rental property. But if you break something, it’s important to alert your property manager as soon as possible. Depending on the situation, your landlord may foot the bill. But there will also be occasions when it is your responsibility to fix the issue.
You may have to pay out of pocket to get it fixed, but if you can arrange the quote yourself, it will likely be more affordable than if your landlord or property manager were to arrange it and take it out of your security deposit. They won’t shop around for the best price like you would. Unfixed damages will also reflect poorly on your rental record and may be counted against you in future rental applications.
In situations like these, keeping a record of everything is very beneficial. That includes communications with your property manager and copies of all relevant receipts and invoices. These may be used as evidence if a later dispute puts your security deposit at risk.
Make sure the property is left in good condition
End-of-lease cleaning is different to the type of cleaning you’d do on a daily basis. Rather than taking just a couple of hours, it can take days, so it’s essential to set aside enough time to get it all done. If something isn’t up to standard, your property manager may use your security deposit to hire a professional to clean it.
When conducting your end-of-lease clean, you need to make sure you reach every nook and cranny. Your property manager will likely provide you with a list of places to clean. This will include often neglected places like fan blades, door tracks, skirting boards, air conditioner filters and wall marks.
If you don’t have the time to clean your property adequately, or you want to improve your chances of getting your security deposit back, we recommend hiring a professional to get the job done. Your property manager can provide a list of trusted companies to address your end-of-lease needs.
As always, make sure you keep a record of your conversations and receipts, as these may again prove useful in getting all of your security deposit back.
We’re happy to help you
If you’re a tenant looking for your next home in the Northern Territory, Thrive Property NT is here to help. You can view our current vacancies here.