Renters wanting to transfer their bonds online can now do so in NSW — for a $25 fee.
The state government’s new Smart Rental Bonds system is now being tested before its launch around June.
The government claims the new system means tenants will no longer have to find a “second” bond to move as they wait for their previous bond refund; it estimate renters need to spend an average of $4000 every time they move.
But a $25 fee will apply.
The government says the IT ‘build’ is done and extensive system testing is now under way for more than 2.3 million renters.
Housing Minister Rose Jackson says: “… the message we heard from renters was clear – having to fork out for two bonds at once when moving properties is a major expense that many just cannot afford”.
“It’s creating stress, real hardship and even homelessness for some people.”
“More people (are) renting in NSW, many of them for extended periods, involving multiple moves,” she says.
NSW Rental Commissioner Trina Jones says: “The government is aware of the challenges renters face when moving home” and says technology like Smart Rental Bond is just one way they are helping renters; click here to visit the commission’s website.
“Allowing the bond to be a portable asset which can move between properties digitally will alleviate the financial strain which comes with moving such as having to hire a van or organise connecting utilities,” she says.
“Nothing will change for landlords in the process either because the government will pay out the agreed claim to the bond once a tenant moves out.”
RENTERS ON THE MOVE
The government estimates that 330,000 households are on the move annually, with most rental tenancies lasting less than two years and involving repeated upfront costs.
This requires people to save for months before they can leave or potentially have to take out hefty loans if they have to move out unexpectedly due to the property’s sale or the homeowner moving in.
HOW IT WORKS
Renters will be notified once a landlord or agent lodges a bond request online.
The renter logs onto Rental Bonds Online and can pay their new bond upfront or use Smart Rental Bonds to move their existing bond to the new property.
If the new bond is higher than the old one, the renter pays the difference.
If the bond is cheaper, the renter gets the difference back provided there is no agreed claim on it.
If a landlord makes a claim on a bond and the renter agrees, the government will pay the landlord upfront and the renter repays the government with no financial risk to landlords, it says.
For more details, visit: https://www.nsw.gov.au/housing-and-construction/renting-a-place-to-live
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