Rental Bond Updates
Smart Rental Bonds NSW are now live in NSW, providing eligible tenants with greater flexibility when moving between rental properties.
The program is being rolled out across the state to make moving less stressful and help reduce the financial pressure on renters. It allows eligible tenants to transfer their existing rental bond to their new rental property for a fee of $25.
This means tenants may no longer need to find thousands of dollars for a second bond while waiting for their previous bond to be refunded.
Rental bonds in NSW
What are Smart Rental Bonds NSW?
Smart Rental Bonds allow eligible tenants moving between two rental properties in NSW to transfer their existing bond through Rental Bonds Online.
Previously, tenants could be required to pay a new bond before their existing bond was released. Depending on the weekly rent, this could mean temporarily funding thousands of dollars across two separate bonds.
Under the new system, an eligible tenant can transfer their existing bond to their new tenancy and pay any additional amount required—for example, if the bond for the new property is higher.
A $25 Smart Rental Bonds fee applies.
Who is eligible to use Smart Rental Bonds?
Firstly, to use Smart Rental Bonds, tenants must:
- Be moving between two rental homes in NSW.
- Use Rental Bonds Online.
- Have an existing rental bond linked to their Rental Bonds Online account.
- Tell the new landlord or managing agent about their existing Rental Bonds Online account.
- Be moving to a new NSW rental property with the same tenants listed on the current rental property.
- Not have an active claim against the bond for the current rental property.
- Be vacating the current rental property within four weeks of entering the new rental property.
- Be at least 18 years of age.
- Be a natural person rather than a company or corporation.
- Pay the $25 Smart Rental Bonds fee.
- Pay any additional money required towards the bond for the new property.
- Not owe money to the NSW Government for a bond loan, such as RentStart.
Tenants who do not meet these requirements will need to follow the standard rental bond process.
How does a Smart Rental Bonds NSW transfer work?
Eligible tenants can arrange the transfer through Rental Bonds Online when moving to their new property.
To transfer a bond, here are the steps:
- Tenant notifies landlord or agent that they have an existing Rental Bonds Online account
The tenant advises the landlord or agent for the new home that they have an existing Rental Bonds Online account.
- Landlord or agent submits the pending bond lodgement including bond holder details
The landlord or agent enters the details for the new bond and submits a pending lodgement. The bond holder’s first and last name must match the previous bond holder information for the transfer to be eligible. The system sends an email with a unique code to the renter.
- Renter selects the option to transfer their bond
The renter logs in to Rental Bonds Online, enters the unique code for the new bond and selects the option to transfer your bond. The renter must ensure the first and last name entered matches the previous bond details.
- Tenant pays Smart Rental Bonds fee and additional bond money
The tenant chooses their preferred payment method and pays:
- $25 fee
- additional bond money, if the new bond is more than the original bond.
- Claim on original bond is submitted
In the first instance, the tenant and the landlord or agent should try to reach an agreement on any deductions to be paid to the landlord or agent from the original bond.
Either the tenant, landlord or agent submits a claim on the original bond in Rental Bonds Online. A claim must be submitted within 4 weeks of the tenant requesting to transfer their bond to a new home.
- Undisputed deductions are paid out
After the bond claim request is submitted, undisputed deductions are paid to the landlord or agent.
- Tenant receives an invoice or refund for any difference in the bond amounts
After the deductions are paid to the landlord or agent, the principal tenant may receive an invoice or a refund depending on whether the NSW Government has paid claims on behalf of the tenant.
The principal tenant will receive an invoice from Revenue NSW for any amount the NSW Government paid for claims to a landlord or agent for the original tenancy. The principal tenant must pay the invoice within 28 days or Revenue NSW may commence recovery action.
If the new bond is less than the original bond, only the amount needed for the new bond will be transferred to the new tenancy. The remaining amount will be available to meet any claims made by the landlord or agent for the original tenancy. If the remaining amount is not fully used to pay claims, the tenant can claim a refund of the remaining balance.
In all cases, the entire bond for the original tenancy needs to be claimed (by the landlord, agent or tenant), even though the funds have been transferred, to finalise the process.
The transfer does not remove the tenant’s obligations under their current tenancy. Tenants must continue paying rent, return the property in the required condition and meet all other responsibilities under their tenancy agreement.
What happens if the landlord makes a bond claim?
If deductions are claimed from the original bond—for example, for unpaid rent, cleaning or damage—the NSW Government will pay approved landlord or managing-agent claims through the usual process. The tenant will then be responsible for repaying the relevant amount to the Government.
The existing process and time frames for paying approved bond deductions to landlords and managing agents remain unchanged.
What changes for landlords and property managers?
There are no changes to the existing bond processes or obligations for landlords and real estate agents.
Importantly:
- Landlords and agents can continue to make legitimate claims against a rental bond.
- The process and time frames for paying approved deductions remain the same.
- The NSW Government will pay approved landlord or agent claims where a bond has been transferred.
- The tenant will be responsible for repaying the Government.
- The option to transfer a bond is visible only to tenants.
- No additional functionality will appear in the landlord or agent sections of Rental Bonds Online.
Landlords and property managers should continue completing outgoing inspections, comparing the property against the ingoing condition report and submitting any legitimate bond claims in the usual way.
Do tenants still need to complete the usual vacating process?
Yes. A Smart Rental Bond transfer does not replace the normal end-of-tenancy requirements.
Tenants must still:
- Provide the required notice before vacating.
- Pay rent and other charges up to the end of the tenancy.
- Return all keys, remotes and access devices.
- Clean the property to the required standard.
- Repair or pay for damage beyond fair wear and tear.
- Participate in the outgoing inspection and bond process.
- Pay any valid amounts claimed against the bond.
An active claim against the current bond may affect a tenant’s eligibility to complete a Smart Rental Bond transfer.
Greater flexibility with continued protection for landlords
Smart Rental Bonds are designed to provide tenants with greater financial flexibility while preserving the existing protections available to NSW landlords and property managers.
For tenants, the program may make moving more manageable by removing the need to fund two full rental bonds at the same time. For landlords, the existing bond claim process and payment arrangements remain in place.
Learn more about Smart Rental Bonds
Tenants and landlords can find information, including current eligibility requirements, on the NSW Government Smart Rental Bonds website.
Need help managing your rental property?
Moshav Realty provides boutique residential and commercial property management services across Sydney, with a strong presence throughout the Eastern Suburbs.
We manage every stage of the tenancy process, including leasing, inspections, rent collection, maintenance coordination and end of tenancy bond matters.
To discuss how we can assist with your investment property, contact Moshav Realty on 02 9188 5000 or visit moshav.com.au.
This article provides general information only and does not constitute legal advice. Eligibility requirements, fees and procedures may change. Visit the NSW Government website for the latest information.
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