Reservation fee

A reservation (deposit) fee is an amount of money (no more than one week's rent) that is sometimes paid to reserve the premises while an application for tenancy is being considered. A reservation fee is a sign of good faith, but does not guarantee that the tenancy will go ahead.

If the landlord or agent decides not to go ahead with the tenancy, on the agreed terms, or makes no decision within one week of the fee being paid, the full amount must be refunded. Should the tenancy go ahead the reservation fee is applied to the first week's rent.

If the applicant withdraws, the landlord may retain rent for the days the premises were reserved. This is provided the premises were not let or occupied during the period of reservation, no more than one reservation fee was being held at the same time and a proper receipt and written acknowledgment were given to the prospective tenant when the fee was paid.

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Rental bond

A rental bond is an amount of money paid by a tenant as a form of security for the landlord against any future breaches of the tenancy agreement. The maximum rental bond that can be asked for is:

• Four weeks rent, for unfurnished premises, or
• Six weeks rent, for fully furnished premises with a rent of $250 or less per week, or
• Unlimited, if the rent for fully furnished premises is more than $250 per week.

The amount of bond that is to be paid (if any) must be written on the agreement.

The landlord or agent must send any bond paid to the Renting & Strata Services Branch of the Office of Fair Trading, within seven days. A lodgement form is needed to do this and can be obtained from the Renting & Strata Services Branch of the Office of Fair Trading, any Fair Trading Centre or from any branch of the Commonwealth Bank.

Demanding or receiving a written guarantee from a tenant, or somebody on their behalf, is not permitted. A rental bond must be in the form of money and not as a guarantee.

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Advance rent

A tenant must pay the rent in advance from the first day of the tenancy. The tenant can be required to pay:

• two weeks rent in advance, if the weekly rent is $300 or less, or
• one month rent in advance, if the weekly rent is more than $300.

It is important to remember that a tenant cannot be required to pay the rent other than on a weekly or fortnightly basis if the weekly rent is $300 or less.

Advance rent is not money that the landlord can keep in reserve as some form of extra rental bond. A tenant cannot be asked to make any more rent payments until the rent which they last paid has been used. For example; on the day the tenancy commences the tenant may pay two weeks rent and be 14 days in advance. As each day passes the tenant becomes oneday less in advance, so that when the rent next falls due (a fortnight later) the tenant is no longer in advance with the rent. By making their next fortnightly payment the tenant is again 14 days in advance and the cycle continues.

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Agreement costs

The landlord can ask the tenant to pay half the cost of preparation of the tenancy agreement, but only up to a maximum of $15 (GST inclusive).

This means that if an agent or solicitor charges more than $30 to prepare an agreement the landlord must pay the balance over $15.

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Keys

All tenants listed on the agreement must be given a set of keys and all other lock opening devices, swipe cards, remote controls, etc., so that they can enter and secure any part of the premises. This includes keys to any door, window, garage, or letterbox locks. Under no circumstances can any tenant be charged a separate fee, bond or deposit for keys.

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