Renters in Parramatta, the Central Coast and Penrith will be first to experience Smart Rental Bonds with a phased rollout across NSW starting in August, the NSW Government has announced.
Smart Rental Bonds will allow the state’s 2.3 million renters to digitally transfer bonds between properties, which is expected to save renters up to $4,000 each time they move home.
The fast-growing communities in the Paramatta, the Central Coast and Penrith Local Government Areas have some of the state’s highest rates of daily bond lodgement.
Now is the best time for renters, landlords and agents in these areas to understand how the system will work, with new rules of operation recently made publicly available, said Minister for Better Regulation and Fair Trading, Anoulack Chanthivong.
“This is the first time in our state’s history that renters will have access to a simple, no-fuss way to transfer their bond when moving house,” the Minister said.
“We’re proud to deliver this crucial reform to flourishing communities like Parramatta, the Central Coast and Penrith – and soon, to every single renter in NSW.
“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.
To be eligible to participate in Smart Rental Bonds, renters must:
- Be at least 18 years old;
- Be moving between two rental properties in NSW within four weeks of the tenancy ending;
- Have no current claim against their bond at the time of transferring, with most renters expected to be eligible as a claim on a bond can typically only be made after the lease has ended;
- And ensure they pay back any future agreed claims on the bond.
With Smart Rental Bonds expected to be popular, the Government says a phased approach is the most responsible way to roll out the system. Renters moving into or within Parramatta, the Central Coast and Penrith Local Government Areas will be able to use Smart Rental Bonds in this initial phase of the rollout. It is expected that all renters in NSW will have access to the system by the end of this year.
“This is a significant moment for renting in NSW, and it’s important that everyone involved understands how these changes will work in practice,” said NSW Rental Commissioner, Trina Jones.
“In a tight rental market, tenants should feel empowered to move when the time is right, not 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.”
For more information on Smart Rental Bonds, visit: https://www.nsw.gov.au/housing-and-construction/renting-a-place-to-live/residential-rental-bonds/smart-rental-bonds.
