Every renter in NSW can now avoid having to find thousands of dollars for a second bond when they move home, with the Minns Labor Government's Smart Rental Bonds scheme rolling out statewide today - months ahead of schedule.
With a successful first phase of the rollout in the local government areas of Penrith, Parramatta and the Central Coast last month, the new system is now being launched in all areas of NSW.
Almost $1 million worth of bond transfers have now successfully been made, meaning a statewide rollout can begin earlier than anticipated.
The new scheme allows renters to transfer their existing bond from one property to the next, eliminating the need to come up with thousands of dollars upfront every time they move home. This is expected to save renters up to $4,000 each time they move home.
Renters can use Smart Rental Bonds through a few easy steps.
- Renters will be notified once a landlord or agent lodges a bond request online.
- The renter logs onto Rental Bonds Online and chooses to either pay their new bond upfront or use Smart Rental Bonds to move their existing bond to the new property. They will then pay a small fee of $25.
- If the new bond is higher than the old one, the renter will need to pay the difference - but if the bond is cheaper, they will get the difference back provided there is no agreed claim on the bond.
- If a landlord at the original property makes a finalised claim on a bond, the NSW Government will pay the landlord upfront. The renter will then repay the Government, meaning landlords face no financial risk.
Smart Rental Bonds delivers on the Minns Labor Government's election commitment to introduce a portable rental bonds system and provide important cost-of-living relief for renters.
This is all part of the Minns Labor Government's reforms to make renting fairer. The Government has:
- Banned no-grounds evictions.
- Limited rent increases to once a year.
- Ensured renters have fee-free ways to pay rent.
- Banned fees for background checks.
- Made it easier to have pets in rentals.
To find out more about Smart Rental Bonds, please visit: https://www.nsw.gov.au/housing-and-construction/renting-a-place-to-live/residential-rental-bonds/smart-rental-bonds.
Premier of New South Wales Chris Minns said:
"Moving home is expensive enough without having to find thousands of dollars for a second bond while your first one is still tied up.
"For a family or household already juggling the rent, groceries, power bills and everything else, that's a lot of money to find at once.
"More than two million people rent in New South Wales. This is a practical change that makes moving home easier and takes one big financial pressure off their shoulders."
Minister for Housing Rose Jackson said:
"The cost of paying a new bond before the old one is refunded can create significant financial pressure for renters moving home.
"Building greater housing stability for renters across the State requires practical changes that make moving home simpler, fairer and less financially burdensome.
"We know there's more work to do, but allowing renters to save thousands of dollars by transferring their bonds between properties is a key part of our plan to make renting fairer.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
"Smart Rental Bonds is here - and it's working to save renters money every day.
"Now, every renter in the state can access this landmark cost-of-living relief.
"So, our message is clear: next time you move property, avoid the dreaded double bond and take advantage of Smart Rental Bonds to save yourself thousands of dollars.
"The Minns Labor Government promised to make renting fairer, and Smart Rental Bonds is just the latest way we're delivering on that promise."
NSW Rental Commissioner Trina Jones said:
"Moving home is already one of life's more expensive and stressful events. Smart Rental Bonds is designed to reduce that pressure by helping renters avoid the need to find money for a second bond while they're waiting for their first bond to be returned.
"We're pleased to be rolling this out statewide and look forward to seeing more renters benefit from a simpler, more flexible bond system as it expands across NSW."
