Changes to the rental bond scheme
The New South Wales Government consulted with the public earlier in the year on possible reforms including those affecting property industry stakeholders.
The rental bond scheme affecting over 300,000 tenancies annually in NSW, will be improved through tenancy legislation to make it easier for a bond to be transferred from one property to another at the end of a lease.
Tenants will no longer need to have multiple bonds lodged at one time, which reduces bridging costs when they move.
It can be difficult for tenants to find funds for a new bond while waiting for their old bond to be returned.
The reform will prevent tenants from having to access the funds through expensive lenders such as payday lenders or other short term lenders who can charge excessive interest rates for the period that the loan is required.
Landlords will be protected and can obtain any shortfall in the transferred bond amount.
Key stakeholders will be consulted throughout the implementation process.