March 2023
Dear Client
CHANGES TO RENTAL BONDS
Please note important changes affecting the payment of new tenancy bonds starting 1 April 2023.
This South Australian Government will lower bonds paid for most rental properties. This is being implemented while the government works through further reforms to the Residential Tenancies Act 1995
You can read more on the CBS website at https://www.cbs.sa.gov.au/campaigns/review-of-sas-renting-laws
Currently landlords can claim residential bonds equivalent to a maximum six-weeks rent when the weekly rent is $250 or greater, with only a four-week bond entitled to be claimed for properties falling below that threshold.
The bond threshold will now be raised to $800 to ensure that for most rental properties in South Australia, only a four-week bond will be required.
The new amount will apply to any bond paid or payable under an agreement entered on or after 1 April 2023. Any bond paid before this date will remain lodged with CBS until the conclusion of the tenancy agreement.
The points below are provided to help with questions that may arise.
· If a tenant signs a lease in March but does not take possession of the property until after 1 April 2023, the current limit ($250) applies
- A tenancy renewal or extension is not considered a new lease agreement.
- The current limit ($250) continues to apply for any bond top-ups if the agreement was entered into before 1 April 2023.
- This will bring South Australia into line with other jurisdictions.
If you have any questions arising from this information you can contact us or CBS www.cbs.sa.gov.au/contact-cbs
Thank you for your ongoing support!
Regards David, Benjamin & the Team at DB Philpott Real Estate
