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NSW digital bond transfer scheme to launch with protections for landlords
NSW’s new scheme allowing renters to digitally transfer their bond between properties will launch next month, with the government vowing there won’t be any financial risk to landlords.
The NSW government has announced that its new Smart Rental Bonds scheme is set to initially launch in parts of Western Sydney and the Central Coast, starting in August.
The initiative will allow 2.3 million renters across NSW to digitally transfer bonds between properties with a $25 fee, eliminating the need to fork out thousands for another bond.
Given its expected popularity, a phased approach will be used to launch the scheme, with all NSW renters to have access by the end of the year.
According to the state government, an initial rollout will take place in the fast-growing areas of Parramatta, the Central Coast, and Penrith, which have some of the state’s highest rates of daily bond lodgement.
The Minns government said the move will deliver cost-of-living relief for renters while still protecting landlords through government-backed guarantees for claims against the bond.
If a landlord makes a successful claim on the bond, the government must pay them back upfront, and the tenant will reimburse the government, with no financial risk to owners.
It also said that, ahead of the rollout, new rules of operation had been made publicly available to allow renters, landlords and agents to understand how the system will work.
To be eligible to participate in Smart Rental Bonds, renters must be at least 18 years old and moving between two rental properties in NSW within four weeks of the tenancy ending.
Additionally, they must have no current claim against their bond at the time of transferring and ensure they pay back any future agreed claims on the bond.
According to Better Regulation and Fair Trading Minister, Anoulack Chanthivong, the scheme will be the first of its kind in NSW, and will particularly benefit flourishing communities across the state.
“I encourage renters in these areas to learn how Smart Rental Bonds works so they can take advantage of this cost-of-living measure the next time they move,” he said.
NSW rental commissioner, Trina Jones, said that in a tight rental market, tenants should feel empowered to move when the time is right, and not be held back by the cost of paying two bonds at once.
“Smart Rental Bonds strikes the right balance, making renting fairer for tenants while maintaining strong protections for landlords,” Jones said.
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