Renters across NSW will save thousands of dollars when they move home under the Minns Labor Government's new Smart Rental Bonds scheme, meaning they no longer have to find money for a second rental bond before getting their first one back.
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.
Around 330,000 households move each year, with most rental tenancies lasting less than two years, meaning thousands of renters face repeated upfront costs when changing homes.
Many renters are forced to spend months saving for another bond before they can move, or take out loans or rely on family and friends if they need to leave unexpectedly because a property is sold or an owner moves back in.
As part of the phased rollout, renters moving into or within the Parramatta, Central Coast and Penrith Local Government Areas (LGAs) can now use Smart Rental Bonds. The scheme will be progressively expanded across the state, with all NSW renters expected to have access by the end of the year.
Saving renters money
Renters in these LGAs are now able to 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.
This reform 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.
Making renting fairer
Landlords and agents will also benefit from Smart Rental Bonds because there are no changes to the current bonds process; agents will continue to notify renters there is a new bond to pay via Rental Bonds Online. The process for paying agreed bond claims to the landlord remains the same and the dispute process through the NSW Civil and Administrative Tribunal will not change.
Landlords will continue to be fully protected even when a bond has been transferred through the government-backed guarantee, as the Government will cover any agreed bond claims from the original tenancy, up to the transferred bond amount. This includes instances where a renter leaves the property in a damaged state.
This is all part of the Minns Labor Government's reforms to make renting fairer. This 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:
"Over two million people in New South Wales are renters - one of the highest proportions of the population ever living in rental accommodation.
"For a lot of renters, moving home can mean finding another $3,000 or $4,000 before you've even had your old bond returned. That's a huge financial hurdle for families already doing it tough.
"Smart Rental Bonds removes that barrier by letting renters transfer their bond instead of paying for two at once."
Deputy Premier of New South Wales and Minister for Western Sydney Prue Car said:
"This reform will ease pressure on hundreds of thousands of families renting across Western Sydney.
"Making renting fairer is an important step as the Minns Labor Government rebuilds the NSW housing system, which was left in a mess by the Liberals and Nationals.
"Every dollar counts and ensuring that renters don't have to put additional money forward for a new bond while waiting for the return of their current bond will save them money."
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
"Today is a huge milestone for renters in NSW, with the Minns Labor Government delivering another election commitment to make renting fairer for the people of NSW.
"Renters in Parramatta, the Central Coast and Penrith now have access to Smart Rental Bonds, allowing them to digitally transfer their bonds between properties.
"This is the first exciting step in a state-wide rollout that will see millions of renters in NSW save thousands of dollars by avoiding the dreaded 'double bond' when moving home."
Member for Parramatta Donna Davis said:
"Renters in Parramatta are leading the pack in this first phase of Smart Rental Bonds' rollout.
"This isn't just about saving money - it's about building a fairer, more transparent property market for the thousands of renters in our community."
Member for Penrith Karen McKeown said:
"The Minns Labor Government is making renting fairer, so that families in Western Sydney can put down roots and build flourishing communities.
"Renters in Penrith can now use Smart Rental Bonds, so it's important that everyone understands how the new system works to make the most of it."
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 begin the rollout in Penrith, Parramatta and the Central Coast and look forward to seeing more renters benefit from a simpler, more flexible bond system as it expands across NSW."
