Rental Bonds And Property Management
Moving into a new rental property mean many costs, such as adjustments according to your requirement, purchase of certain furniture or other articles of use, and lump sum rental payments. Another cost that is often overlooked by the tenants is that of rental bonds. A rental bond is the amount of money that the landlord asks the tenant to pay in order to make the deal more secure. In any case that the tenant defaults in making any of the rental payments, this money can be used in order to recover the loss. If there is no default till the assigned period, the money is then returned to the tenant. Having information about rental bonds is a part of property management.
Rental bond is essentially treated as a security deposit and payment for this is made when you sign the lease agreement. Many view rental bonds as a protection in the best interests of the landlord. In case of damages to the rental property or in instances of unpaid rents, bonds are something the landlords can fall back on. In addition, these are also useful of the tenants. They are also able to have financial protection as rental bonds have a legal standing. It is paid to the Rental Bond Authority whenever a new lease agreement is signed. The tenant has the assurance that besides the normal wear and tear, if there are no significant damages to the property and all rental payments are made regularly, the rental bond amount will be returned to them in full. The only thing is that the tenant needs to be more careful in handling the property and avoid any damages.
There are different kinds and amounts of rental bonds depending on the circumstances. A general rule is that if your weekly rent is $500 or less, the maximum bond of the unfurnished property is up to four weeks' rental payment. For rental payments more than $500, the bond amounts may vary from property to property. It is better to engage a real estate agent to make negotiations with the landlord.
Landlords are more secured and protected by rental bonds in any event that tenants fail to follow the rental arrangement. It is, however, not mandatory to have rental bonds. Property managers provide guidance and assistance to both parties to settle the lease agreement and rental bonds arrangements.
About the Author
Ray White Bunbury http://www.propertymanagementbunbury.com.au/ is an established property management Brisbane company with a dedicated staff of property managers Brisbane to assist property owners for good returns on their properties.
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