Bond and condition report: why care from day one matters

The bond (security deposit) and the condition report directly affect whether you get your money back at the end of a tenancy. Getting them right from the start will spare you unnecessary disputes.

What is the bond and who holds it?

The bond is an amount you pay before you move in, as security for the landlord. But unlike in many other countries — the landlord is not allowed to hold the bond money themselves.

Under the law in every Australian state, the bond must be lodged with a state government authority that specifically manages rental bonds:

• NSW: Rental Bond Board (administered by NSW Fair Trading)
• VIC: Residential Tenancies Bond Authority (RTBA)
• QLD: Residential Tenancies Authority (RTA)
• WA: Bond Administrator (administered by Consumer Protection WA)
• SA: Consumer and Business Services SA
• TAS, ACT, NT: The equivalent authorities in each state or territory

This protects you: the landlord cannot use the bond money at will, and there is an official process to resolve disputes at the end of the tenancy.

How much is the bond?

The maximum bond is set by each state’s law and is usually linked to the rent. You should not accept a bond higher than the legal limit — check the specific rules for your state on the website of the relevant bond authority.

Receipt and confirmation of bond lodgement

After you pay the bond, the agent or landlord has a legal obligation to:

1. Lodge the money with the state bond authority within the required time (usually a few weeks after receiving it)
2. Provide you with a bond lodgement receipt from the bond authority

Keep this receipt safe — it is evidence that your bond has been registered. If you don’t receive a receipt within a few weeks of paying, contact the state bond authority directly to check.

What is a condition report?

A condition report is a document recording the state of every room, surface, and fixture in the property at the time you move in. This is the most important document you will receive when you rent.

When the tenancy ends, the condition report is compared with the state of the property when you hand it back. If there is damage not noted in the original report that goes beyond fair wear and tear, the landlord can claim a deduction from the bond.

Your right to annotate and add to the condition report

When you receive the condition report, you have a set period of time (depending on the state) to review it, add your own comments, and return it to the agent. Don’t skip this step.

The right way to do it:

1. Walk through each room with the condition report in hand
2. Compare what is noted in the report against what you actually see
3. Add every bit of damage, scratch, or stain you see that hasn’t been recorded — no matter how small
4. Sign and date it, then return it to the agent within the required time

If you don’t annotate it, the default is that you accept the property is in the condition described in the report — and you will be asked to pay for that damage when you move out, even though it was there before you arrived.

Photograph on move-in day

In addition to the written condition report, photograph the entire property on move-in day — or, best of all, before you move your belongings in. The photos should:

• Have a clear timestamp — most phones save this metadata automatically, but you can also photograph a screen showing the date and time next to the shot
• Cover every corner of every room, the walls, floors, kitchen, bathroom, and outdoor areas
• Specifically capture any damage you noted in the condition report

Store the photos somewhere you won’t lose them — cloud storage is a good option.

When and how do you get the bond back?

When the tenancy ends and you have handed back the property, there are two scenarios:

When both parties agree: The agent or landlord fills in a bond claim form, you sign to confirm, and the bond authority transfers the money to your account within a few business days.

When there is a dispute: If the landlord or agent wants to deduct part of the bond and you don’t agree, you can lodge a dispute with the state’s rental dispute resolution body (a tribunal or tenancy authority). It will consider evidence from both sides — this is when the condition report and your move-in day photos carry decisive weight.

You don’t need a lawyer to lodge a bond dispute — the process is designed so ordinary people can do it themselves. Look up the guidance on your state authority’s website.

Fair wear and tear vs. tenant damage

A common point of contention: fair wear and tear (the natural deterioration from normal use) cannot be charged to the bond. For example:

• Timber floors fading over time: fair wear and tear

• Timber floors deeply scratched from dragging heavy furniture: can be charged

• Wall paint fading after many years: fair wear and tear

• Nail holes in the wall from hanging too many pictures: can be charged

Understanding this line will help you protect yourself in a dispute.