Bond

The bond is money you pay at the start of the tenancy as a ‘security.’ If the landlord can prove you owe money, left the property unclean, or have damaged the property, then they may claim from your bond at the end of the tenancy.

The bond is your money held by NSW Fair Trading (part of the NSW Government) until the end of your tenancy. 

The most bond you can be required to pay is an amount equal to 4 weeks rent.

A bond is not compulsory but most landlords ask for one.

You can only be asked to pay one bond per tenancy. The landlord/agent cannot require you to pay more (or another) bond when the rent is increased.

You pay the bond when you sign the lease (or just before signing the lease if you are using Rental Bonds Online).

You can pay the bond in two ways. Either:

1. Directly to NSW Fair Trading, using Rental Bonds Online (see below); or
2. To the landlord or real estate agent who must lodge the bond money with NSW Fair Trading. The landlord/agent must give you a receipt and a lodgement form to sign.

You can pay the bond:

1. as a lump sum, or
2. in instalments starting from when you sign the tenancy agreement, if the landlord agrees.

Check your bond is lodged correctly

Once your bond is lodged, you will get a deposit notice from NSW Fair Trading along with a rental bond number. If you do not get it within a few weeks, contact NSW Fair Trading to make sure your bond is safely stored. If the landlord/agent does not deposit the bond within the required period, they can be fined up to $2,200; you can send them our Sample letter: Bond not lodged.
 

Rental Bonds Online is an online system that allows tenants and landlords to manage their bonds. The system is managed by NSW Fair Trading (part of the NSW Government). The system is secure and allows payments of bonds through Visa, Mastercard, BPay and bank transfer.

Rental Bonds Online is the best way to pay the bond. You can be sure that your bond has been lodged correctly. It is also easier to claim your bond back at the end of your tenancy. It’s a good idea to keep your own records of the bond you paid, as well as your login details somewhere safe you’ll remember. All landlords and agents must give you the option to use Rental Bonds Online if you want. The vast majority of renters use Rental Bonds Online to pay the bond. 

Homes NSW operates the Rentstart Bond Loan scheme to provide financial assistance to help tenants set up or maintain a tenancy in the private rental market. The loan is interest-free and repayable to Homes NSW. There are certain eligibility requirements. See Applying for a Rentstart Bond Loan (NSW government). 

There are steps you can take during your tenancy to give you the best chance of getting your bond back when you leave.

1. When you move in, take lots of photos and fill in the condition report thoroughly. Note anything that is dirty, damaged or broken. Return the report to the landlord/agent within 7 days.
2. Keep a good record of what happens during the tenancy – such as when things break.
3. Communicate with the landlord/agent when needed (preferably in writing, and keep a copy). Tell them about any repairs that are needed.
4. Follow your responsibilities:
   • Pay the rent on time
   • Keep the property reasonably clean and cared for
   • If you want a pet, you need the landlord’s consent, and you may have additional cleaning responsibilities
   • If you want to transfer or sub-let your tenancy, you need the landlord’s consent, and other people’s actions may become your cost

For more tips and steps you can take during your tenancy to help protect your bond, see our Bond Kit.

If you want to transfer your bond to a new tenancy, or to a different person, you have limited options.

Currently, transferring your bond to a new tenancy relies on the former agent or landlord releasing the bond early. In 2026 the NSW government plans to bring in a portable bonds scheme which will aim to reduce stress and financial pressure on renters. When that happens we will update this factsheet.

For more info see our Bond Kit and Factsheet: Transfer and sub-letting. If you need advice, call your local Tenants Advice and Advocacy Service or NSW Fair Trading on 13 32 20.

If damage was done to the property during an incident of domestic violence, only the offender should be held responsible for that damage. The victim-survivor (and other tenants who are not the DV offender) should not be held responsible.

It is a good idea to inform the landlord in writing about the damage. You may need to keep evidence, such as a DV Termination Notice, photos, police report, or a report from a support worker or medical professional. If police attend the premises due to DV, record their names and the event number.

More info: Factsheet: Domestic violence and renting.

The bond is your money and it should be returned to you in full when the tenancy ends, unless the landlord has a valid claim. If the landlord wants to claim from your bond at the end of the tenancy, they need to prove why and what the bond money is needed for – with evidence such as quotes, invoices. Keep in mind that most bonds are returned to tenants in full.

Make sure you give the correct notice and time period for ending your tenancy. If you are breaking a fixed-term lease, a break fee may apply. See Factsheet: How do I end my tenancy?

When you move out, your responsibility is to return the property in a similar condition to how it was when you started renting it (taking into account the normal wear and tear of living somewhere).

The condition report and photos from the start of your tenancy become important here, because they are proof of what the property was like when you got it.

Make sure you take lots of photos when you move out.

You have the right to attend the final inspection of the property, and it is a good idea to do so. This is when the landlord/agent (and you) complete the outgoing condition report. See our Sample letter: Request for joint final inspection.

It is usually a good idea to put in your bond claim as soon as you have moved out and returned the keys (see below). You can do this through Rental Bonds Online if that’s how your bond was lodged at the start of the tenancy.

When you finalise your bond, look out for an email from NSW Fair Trading asking you to participate in an end-of-tenancy survey. We encourage all tenants to fill out this survey – it is confidential and the data helps organisations like ours advocate for law reform and renters' rights.

What might the landlord claim for?

The landlord/agent may claim:

• unpaid rent or other charges you owe
• break-lease fees (if you left the tenancy during a fixed term without a legal reason) – see Factsheet: How do I end my tenancy?
• the reasonable cost of:
  • fixing damage: if you, another occupant or a guest has damaged the premises or goods leased with the premises (other than ‘fair wear and tear’)
  • cleaning: if you have left any part of the premises not reasonably clean
  • replacing locks or other security devices: if you have altered, removed or added these without their consent

The landlord/agent may make other claims, but all claims must be reasonable and backed up with evidence.

Cleaning

You need to return the property reasonably clean. ‘Reasonably’ clean does not mean ‘pristine’, ‘perfect’ or ‘spotless.’ It just means what a sensible person would think is clean, also considering how the property was when you moved in.

You do not have to hire a professional cleaner at the end of the lease. In general, a professional clean will be beyond the standard of a ‘reasonable clean’ so you should not feel that you have to pay for a professional end-of-lease cleaner if you would rather do it yourself. If you do decide to pay a professional cleaner, tell the landlord/agent, and keep the receipt.

If you have a pet, the landlord may have set conditions on cleaning and fumigation for the end of the tenancy as part of their permission for you to keep your pet. These conditions must be ‘reasonable and appropriate.’ 

Damage and ‘fair wear and tear’

You are responsible for any damage you have caused or allowed to happen, including by other occupants or guests.

However you are not responsible for ‘fair wear and tear’ – this is the normal ageing that happens to a property through everyday use or the forces of nature. For example, a carpet with a burn mark you caused is damage, but a carpet that is worn from walking on it, or faded by the sun, is normal wear and tear. 

Also, you are not required to make old things new again. ‘Depreciation’ is the name for the reduction in the value of something over time. So even if it is decided that you have to pay for something, you do not have to pay the new price – you only have to pay the appropriate value for something that age.

For more information on depreciation and examples of damage vs fair wear and tear, see our Bond Kit.

You can claim your bond as soon as you move out

It’s usually a good idea to put in your bond claim as soon as you have moved out and returned the keys. You can do this whether you and the landlord agree or disagree on the amount to be returned. You do not need to wait for the landlord/agent, although you may wish to inform them and request their agreement (see below). 

Put in your bond claim through Rental Bonds Online if that’s how your bond was lodged at the start of the tenancy, or use the Claim for Refund of Bond money form.

You can claim your full bond, or if you agree you owe a certain amount (for example unpaid rent or repairs to damage you caused), you can put in a claim less the amount you agree you owe.

The landlord/agent will be notified by NSW Fair Trading when you put in your bond claim. If they want to dispute your claim, they will need to apply to the NSW Civil and Administrative Tribunal (NCAT) within 14 days. 

If you agree with the landlord/agent

If you can agree with the landlord about the bond, you can get it back more quickly – often within 24 hours of you both telling NSW Fair Trading.

Make sure that it's an agreement you are happy with and, if they are claiming any money, that you agree with their claim. Keep in mind that most bonds are returned to tenants in full.

If the landlord/agent asks you to sign a blank form, or a claim that you disagree with, do not sign. 

If you reach an agreement, it’s a good idea to get something in writing (you can follow up a verbal conversation with an email that outlines what was agreed). You can ask the landlord/agent to tell NSW Fair Trading as soon as possible.  

If the landlord puts in the bond claim first

If the landlord/agent puts in the bond claim before you do, you will be notified by NSW Fair Trading. If you agree with the landlord’s claim you can confirm with NSW Fair Trading to finalise the process as quickly as possible. If you do nothing, the bond will be paid into your nominated bank account (less any amount claimed by the landlord) after 14 days. If you disagree, you will need to apply to the Tribunal to dispute their claim (see below). 

What if there is a dispute about the bond?

Sometimes, even when you do everything right, you and the landlord might still disagree about the bond. If that happens, you can ask the NSW Civil and Administrative Tribunal (NCAT) to decide.

Some landlords/agents will threaten an unreasonable claim on your bond – but some will not follow through at NCAT.

If they want to make a claim on your bond, the landlord/agent must provide evidence. They must consider fair wear and tear, and depreciation, and take steps to minimise their losses.

If they want to make a claim on your bond without your agreement, they must give you a copy of the condition report completed at the end of the tenancy agreement, and copies of estimates, quotes, invoices or receipts for work they are claiming, within 7 days of making the claim.
If there is a dispute, start by writing to the landlord/agent. Tell them you disagree with their claim and:

• Ask for an itemised list of what they’re claiming
• Request photos, quotes and receipts supporting their claims. 

You can use our sample letter: Bond dispute.

You can also try negotiating – see Tips: Negotiating with the landlord.

The NSW Civil and Administrative Tribunal (NCAT)

If the landlord/agent makes a claim on your bond first you will be notified. If you disagree with their claim you need to make an application to NCAT. If you do not respond within 14 days, the bond will be paid out according to their claim. But, you still have up to six months to apply to NCAT to challenge their claim.

If you put in your bond claim first, and the landlord/agent disagrees, they will need to make the Tribunal application. You’ll receive a notice from NCAT with the details of the hearing.

The Tribunal is an independent body that has the power to decide disputes between landlords and tenants. It is not a Court. It is a more informal setting where you can speak for yourself. Renters usually represent themselves at NCAT. NCAT expects this. To make things easier, NCAT uses simple processes, plain language, and a minimum of formality.

For the best chance of success at the Tribunal, try to present your story clearly, backed up with strong evidence.

To prepare for your Tribunal hearing, read our Bond Kit and NCAT Factsheet, and contact your local Tenants Advice and Advocacy Service well before your Tribunal hearing if you need advice. 

• Bond Kit: Guide to protecting you bond
• Factsheets: Overdue rent, NSW Civil and Administrative Tribunal, Starting a tenancy, How do I end my tenancy?, Eviction, Repairs and maintenance, Domestic violence and renting, Share housing, Transfer and sub-letting, Rent payment, Pets.
• Sample letters: Bond dispute, Request for joint final inspection, Bond top-up, Bond not lodged, Bond repayment to co-tenant Statutory Declaration.
• New Renters Kit
• Tips: Negotiating with the landlord, Avoiding rental scams.
• Podcasts: Bond, Getting a foot in the door, Get me outta here, and Negotiation for renters.

NSW Government

• Residential rental bonds
• Getting your bond back at the end of a tenancy 
• Examples of 'fair wear and tear' and damage 
• Dealing with bond disputes for tenants
• Rental property condition reports
• Rental Bonds Online
• NSW Fair Trading (phone 133 220)
• Homes NSW (phone 1800 422 322)
• NSW Civil and Administrative Tribunal (phone 1300 006 228)