what the bond can't pay for

claire You're probably making at least one of these mistakes.

eddie The owner's side raised the water bill. And the member explained the bond can't pay it.

claire Can't? It's a bill. Isn't that what the bond's for?

eddie That's the mistake.

claire Welcome to Both Sides of the Lease. I'm Claire, from Distinct Properties.

eddie And I'm Eddie. I know the bond rules better than my own phone number.

claire It's true. He had to look it up for this. One real story at a time, told from both sides of the lease.

claire Today, what the bond can and can't pay for.

claire By the end of this one, you'll know the list of things a bond can actually cover, and the bill everyone expects to be on it, that isn't.

claire So Eddie, what is the bond actually for?

eddie In the ACT, there's a list. Damage beyond fair wear and tear. The cost of securing the place if the keys don't come back. Rent that's owing when the tenancy ends. Fuel the owner supplied, like gas or wood. Plus a couple of narrower items, like an amount in a clause the tribunal has endorsed.

claire So it's a shopping list. Is water on it?

eddie Water usage isn't on that list. The tenant still owes it, it's their bill under the standard terms. But because it's not a bond item, they pay it directly.

claire Okay. Take me to the hearing.

eddie This was a rent arrears hearing. The tenants had already moved out, and they didn't turn up.

claire Can it go ahead without them?

eddie The member checked first. Had they been told about the hearing, and how. Once the member was satisfied they had, it went ahead without them.

claire So, tenants, ignoring the letter doesn't make it go away.

eddie It doesn't. Then the owner's side asked for two things. The rent that was owing, and the water.

claire And the water's where it got interesting.

eddie The member explained that the bond can't be used for water consumption. The tenants could still be ordered to pay it, but directly, not through the bond.

claire So the bill's still real. It just goes somewhere else.

eddie Exactly. And then a second thing came up. The owner was planning a bigger claim for damage, and expected to claim the whole bond.

claire Uh oh.

eddie The member pointed out that an order for the rent that day would, the word was, crystallise that debt. Settle it, on its own. And the member thought the bond might all need to be dealt with at one time. Under the Act, a second release application needs special permission.

claire So grab the rent now, and you might make the bigger claim messier later.

eddie That's the risk. So instead, the member noted what was owing, and held everything over, the rent, the water and the damage, into one compensation claim, at a conference a few weeks later.

claire One claim, one go at the bond. I do like tidy.

eddie Tidy wins. And the owner's side got homework. An itemised list of every amount claimed, with the evidence, sent to the tenants by a set date. The tenants could respond at or before the conference. And the member said that if they didn't come, the tribunal may be able to make final orders.

claire Okay, lessons. Tenants?

eddie If a hearing notice comes, respond or turn up. This one went ahead without the tenants. And know what the bond can be used for, so you can check any claim against it.

claire Owners?

eddie Water usage is paid by the tenant directly, not from the bond. And think before you split a claim. One claim with everything in it is usually cleaner.

claire And us, the agency in the middle?

eddie Be able to show the tenants were told about the hearing. And bring an itemised list, with evidence for every amount.

claire Okay, Swap Sides. I'm the tenant. I've already moved out. Why shouldn't I just ignore the whole thing?

eddie Because in this story, the hearing went ahead without the tenants. And if you miss the conference, the member said final orders may be made. If you think the list is wrong, the time to say so is at or before the conference.

claire Over the Border. Bonds and water bills in New South Wales?

eddie Flip it. In New South Wales, the tenant pays for water usage if the place is separately metered and water efficient, and the owner asks for it, with a copy of the bill, within three months. And because that's a charge the tenant owes under the agreement, the owner can claim it from the bond. The bond's lodged through Rental Bonds Online, and a dispute goes to NCAT, where it starts with conciliation.

claire Same bill, opposite answer.

claire So, three takeaways. In the ACT, the bond covers a set list, and water usage isn't on it. If a hearing notice comes, respond. This one went ahead without the tenants. And owners, one claim with everything in it beats splitting it up.

eddie Know the list.

claire Love that. Quick reminder: this is general information, not legal advice, and the details are in the show notes.

claire Next time, another real story from the tribunal, and both sides of it.

eddie Always both sides. That's us for this one. I'm Eddie.

claire And I'm Claire. If this helped, follow and subscribe wherever you're listening, so you don't miss the next one.