Does bond need to increase when rent increased...?

S

Superstitionist

I start off with 4 weeks rent as the bond, but after a number of rent increases, it is pretty much go down to around 3 week rents for the current rate.

How is that work....does the bond needs to top up somehow...:confused:

Super.
 
many PMs forget. over a duration of time you may find you only hold 2 weeks rent instead of 4! If it is concernign you then I would nudge your PM
 
Do you mean increase the bond for a new tenancy? the PM should be advertising & charging a bond equivalent to a months rent (Vic). so what ever the rental figure the property is advertised at then the bond would be calculated from that weekly rental figure. We charge a calendar months rent for the bond. (weekly rent amount X 52 weeks / 12 months). Example if the rent was $300 per week - 300 X 52 / 12 = $1300 for the bond amount. So the bond automatically adjusts alongside the rent figure.

If you mean that you have increased the rent with a current tenant in place and want to increase the bond??? In Vic the bond connot be increased during the tenancy. This may not be the case in other states.
 
the later Calendar. I find it odd that they wouldn't allow that... so even after 20 years, if the initial bond was say 4 x $20 = $80 and the current rent is now 4 x $500 = $2000, you aren't allowed to collect the additional $1920?

is definitely allowable in WA, in fact a PM could be accused of non-performance of their duties if they didn't do it, which they most often don't
 
Ausprop said:
is definitely allowable in WA, in fact a PM could be accused of non-performance of their duties if they didn't do it, which they most often don't
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Im not too sure on that Aussie.........I have PM's that tell me you can only increase the bond under a new tenancy, not just on a rent increase.

Do you have the relevant section of the act that states otherwise?
 
well Super said they had several rent increases so I thought it safe to assume the tenant had been there for a long time, even if they were just on periodical. It's all an interesting point, when I get some time I will look it up. The point definitely came up when i was doing the agents course recently and it was noted that bond needs to be topped up, I just can't recall the specifics
 
The Y-man said:
http://www.taswa.org/downloads/All/2_9.pdf

The Y-man
Click to expand...

Not too sure if that will apply in Vic.

A quick search in the Consumer Affairs Victoria web site, it states that:

"The bond cannot be increased once you have signed a Residential Tenancy Agreement, unless ordered by the Victorian Civil & Administrative Tribunal (VCAT)."

Not sure the renewal of agreement will consider as stop-and-start a new agreement or extend an existing agreement......just confuse.....:confused::D

Super.
 
Pablo said:
Super,

Why not just ring the RTBA, their phone no. is 1300 13 71 64.
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Because it is not a real concern to me and have faith in my managers.

With such a small amount of money involved, which is covered by insurance anyway if things did ever go pear shape, I have no real reason for concern.

P.S. different rtba here in WA.
 
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