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5 months ago
22
An Aussie renter was left stunned after she was told she would need to pay more than twice the amount of an average bond to secure a property.
Erin and her partner, who live in Queensland, found a property they both liked that would cost them around $800 a week to live in.
The couple believed they would only have to pay a bond of $3,200.
Renters across the country generally have to pay a bond that is the equivalent to around four weeks' worth of rent.
Erin (pictured) said she was shocked after being confronted by the huge amount, after she found a rental property along with her partner in Queensland that they pair liked
Erin was stunned when she found out she and her partner would have to pay more than twice the amount of money, when they went to apply for the property.
She took to TikTok to express her shock after being confronted with the huge amount.
'When we went to apply, there was an amount owing of $6,500,' Erin said.
'I didn't realise that when you move into a rental that's $700 or more [in rent], the owner can charge how much they want to charge upfront.'
According to the Residential Tenancies Authority, if the weekly rent is higher than $700, landlords can negotiate the price of the bond.
The Residential and Tenancies Accommodation Act (2008), which governs rental and tenancy agreement laws in the Sunshine State, does not specify a maximum amount a tenant can be charged.
The property listing had indicated the pair would need to pay $3,200 in bond money however, the amount exceeded this figure because the rent is worth more than $700 a week (pictured stock image)
'You wonder why we have a rental f*****g crisis hun, woah!' Erin said.
Hundreds of social media users were left shocked and shared similar experiences.
'We had a bond of $10,000 at the request of a landlord. Our property was $850 a week it was insane,' one wrote.
'Had this happen, they required $7800 for 'bond ' then 2 weeks rent,' another renter wrote.
Others expressed their disbelief over the huge amount of bond money, tenants will have to fork out to be able to afford a rental property.
'These prices are insane,' one wrote.
'So wrong that should be illegal,' another person added.
Renters who uploaded their comments on social media, shared similar experiences that they encountered about making bond money payments for a rental property (pictured a rental property for lease in Melbourne)
Some suggested that the couple should find a cheaper place to rent until they can afford a deposit.
'You might [save enough for a deposit] if you move somewhere for 450 a week for a few years...you can't live in the now and prepare [for] the future it's a sad reality,' one wrote.
Real Estate Institute of Queensland CEO Antonia Mercorella said these bond rules came into effect a long time ago when the property market was different.
'The $700 threshold was set many years ago at a time when weekly rent values were vastly different to those we are seeing in today's market,' she told Yahoo.
Queensland passed new tenancy laws last month to limit the amount of bond to no more than four weeks of rent.
Tenants can request a refund on a bond payment if it exceeds the maximum amount prior to the new laws coming into effect.
The new laws, which will be implemented in two stages, are yet to be enforced with an official date yet to be announced.
What are the bond laws in Australia
Victoria
Bond amount cannot exceed more than one month worth of rent.
A property manager or landlord can only ask for a higher bond, if the weekly rent is above $900 or the VCAT (Victorian Civil and Administrative Tribunal) has set a higher bond for the property.
NSW
Tenants are only required to pay a bond amount worth four weeks in rent.
Queensland
Tenants are charged a bond amount worth four weeks of rent if the rent for the property is less than $700.
There is no maximum bond amount set for tenants who pay more that $700 a week in rent.
These laws however have been changed to limit the bond to a maximum of four weeks in rent however, the laws are yet to come into effect.
ACT
Bond amounts can only be worth up to a maximum of four weeks in rent.
South Australia
The maximum bond that can be requested for residential tenancy agreements is up to four weeks in rent, if the weekly rent is less than $800.
A bond amount of six weeks worth of rent can be requested by landlords and property managers, if the weekly rent is more than $800.
Western Australia
The bond amount must not be worth more than four weeks of rent if the weekly rent is less than $1,200 a week.
Property managers can charge more than four weeks worth of rent, if the weekly rent for a property is worth $1,200.
Tasmania
The bond amount cannot be worth more than four weeks worth of rent.
Northern Territory
Landlords and property managers can only ask tenants to pay a bond amount worth four weeks in rent.
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