Rental Guarantee Bonds - Important Information
What should a Landlord do in the event of a payment default by the tenant?
The
Landlord must notify Aussie Bonds of a potential claim within 2 months of the first unpaid rental. This is an important requirement,
so that Aussie Bonds can maximise any recovery possibilities against the defaulting tenant. Claims must be made within 4 months of
the first rental payment default, otherwise the claim may be declined. Once a default has occurred the Landlord must consult Aussie
Bonds before taking action against the tenant.
What must the Landlord do in the event it wishes to claim?
The Landlord must
notify Aussie Bonds as soon as possible about the potential claim, and before taking action under the Lease. This is important to
ensure that any rights of recovery are maintained.
Is there a claim excess?
There is a wait period equivalent to one months
rent, which is a once only deduction.
If there is a claim, can the Bond be reinstated, for a new tenant?
No, a new Bond
will need to be issued in respect of a new tenant.
If there is a rental increase in future does the Bond pay the higher amount?
The
Bond is for a set amount based on the initial rental and any covered outgoings. It does not automatically increase with rental reviews.
You may apply for an endorsement to the Bond to cover the rental increase, in which case an additional premium based on the increased
rental will be charged.
