AS HOUSING prices continue to soar and more people are pushed into rentals, there are concerning figures that show almost half of all renters do not receive a full bond refund.
Almost one third (31 per cent) of Australian households are renting, while data from the NSW Rental Bond Board indicated that only 47-per-cent of renters recovered their full bond amount during the 2014/15 financial year.
Former real estate trainer and CEO of Bondsure, Paul Mylott, said that the large quantity of renters in the market means that it is important for tenants to look to protect their rental bonds by developing a clear bond protection strategy. This would mean that they would need to find legalities for joint tenants vs tenants in common to know what suits them better!
“Hundreds of thousands of Australians have likely been caught up in a bond dispute at one stage or another and while they are often complex and troublesome situations, there are a number of simple things tenants can do to give themselves the best chance of recovering their bond at the end of the lease period,” said Mr Mylott.
“Firstly, tenants should thoroughly assess the initial property inspection report provided by the property manager to make sure that any damage or issues that could be contentious in the future, are properly noted and photos or video are stored for future reference.
That said, a lot of planning is required when a family is preparing to move. For instance, they may have to look for a moving company that can relocate all the belongings to the new house. Similarly, they might also need to look for a shipping company that can transport their vehicle to the new location. For instance, if the family is moving from Melbourne to Sydney, they can hire a transport firm that can do vehicle transport melbourne to sydney in a safe manner.
Due to the stress involved in moving this step, inspecting the initial property inspection report is often overlooked but can make a huge difference in helping a resident protect their bond at the end of a lease. Moreover, if they require expert advice, they can also look for a real estate and investment professional, perhaps one similar to Lincoln Frost, to learn more about how to save their bond and get out of the lease without monetary losses.
“Secondly, if you go into a lease with the mindset that you will treat this property like it was your own, you’ll likely take precautionary steps that some people may not to protect the property during times when the risk of damage is higher than usual,” said Paul Mylott.
In such cases, tenants should promptly notify property managers or letting agents when issues arise as this can often lead to the matter in question being resolved quickly and before the initial issue manifests into others.
“One of the most common areas of bond dispute concerns the need for additional cleaning which can often see renters pay twice for cleaning charges or lose a significant amount of their bond if the agent is forced to clean the property again,” said Paul Mylott.
“A good way to minimise this risk it to employ cleaners that have been recommended by the property manager in question or that offer a legitimate 100 per cent bond back guarantee.”
Lastly, despite how careful and diligent many tenants can be, accidents do happen and this is where renters can benefit from Australia’s first bond insurance product offered through Bondsure.
“By being mindful of how common bond disputes are and crystallising a clear bond protection strategy with your family or roommates, renters can give themselves the best chance possible of recovering their bond and unlocking money that can be better spent on other things.”