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The Bond Extra program encourages private sector landlords and agents to rent properties to people who may be experiencing difficulty entering the private rental market even though they have the income and skills to sustain a successful tenancy.

What is a Bond Extra?

A Bond Extra offers up to $1,500 (including GST) to landlords/agents to cover rental arrears and/or property damage over and above the rental bond. The Bond Extra is valid for the fixed-term period of the tenancy agreement for up to 12 months, or until the tenancy is terminated, whichever is sooner.

A Bond Extra can be issued by the Department of Communities and Justice and Social Housing Management Transfer community housing providers.

Why do we offer a Bond Extra?

A Bond Extra offers an incentive and added security for landlords and agents to accept people they might otherwise be hesitant to consider as a tenant. The Bond Extra is intended to supplement the rental bond for the initial fixed-term period of the lease.

The Bond Extra also helps tenants build a successful tenancy history, thus reducing or eliminating the disadvantages they previously experienced when trying to access the private rental market.

Eligible clients

A Bond Extra is available to people who:

  • have a household income within the low income limit at the time of application
  • have already looked for private rental accommodation without success,
  • have been assessed as able to afford private rental,
  • do not have a current Bond Extra, and
  • have agreed to the conditions for receiving a Bond Extra.

Eligible properties

The Bond Extra only applies to agreements or premises that are covered by the Residential Tenancies Act 2010. Please refer to sections 6 and 7 of the Act.

Steps to establishing a tenancy with a Bond Extra

There are three simple steps to establishing a tenancy with a Bond Extra.

1. Offer

Clients can be offered a Bond Extra by DCJ or Social Housing Management Transfer community housing providers.

2. Landlord or agent Accepts the offer

If the client is approved, we will provide a letter confirming the TBond Extra offer.

A client with a Bond Extra will show the offer letter when seeking to rent from you. The letter will be printed on letterhead and will include:

  • confirmation of the Bond Extra offer and expiry date, and
  • maximum weekly rent to which a client can apply for properties and still be eligible for a Bond Extra;
  • instructions on how to accept the offer, and
  • contact details of the social housing provider issuing the offer.

If you are able to offer the client a tenancy, please return the following via email to the social housing provider shown on the offer letter:

3. Activating the Bond Extra

Once the above documents are received, the social housing provider will:

  • confirm that the property is eligible for a Bond Extra, and
  • confirm your Acceptance of a Bond Extra and condition report, and
  • confirm with you in writing that the Bond Extra has been activated.

Landlord/agent responsibilities during the tenancy

By signing the landlord/agent’s acceptance of Bond Extra, you have a responsibility to mitigate loss, act if a tenancy breach occurs, and liaise with the social housing provider if problems arise.

Duty to mitigate loss

In accepting the Bond Extra, you agree to take prompt and appropriate action to avoid or minimise loss if the tenancy agreement is breached. This includes notifying the social housing provider of any breaches, conducting regular property inspections, and making courtesy contact with tenants if rent falls behind.

Liaison with the social housing provider

You should contact the social housing provider if:

  • You are aware of problems affecting the sustainability of the tenancy.
  • The tenancy has been breached.
  • The tenant fails to rectify tenancy breaches.

At the end of the tenancy

You will be informed when the Bond Extra has expired. If you are satisfied with the tenancy, you are encouraged to continue the residential tenancy agreement beyond the fixed-term period.

Making a claim against the Bond Extra

Timeframe

The social housing provider must be notified of your intention to lodge a claim within 28 days of the termination of the tenancy or expiry of the Bond Extra, whichever occurs first.

If you intend to claim, please first claim the rental bond in full and seek an order from NCAT for the amount exceeding the bond that is owed to you from rent arrears or property damage

All final claims with evidence must be lodged by the social housing provider within three months of the expiry of the Bond Extra.

The Bond Extra only applies to agreements or premises that are covered by the Residential Tenancies Act 2010.

Submitting a claim

To make a claim, the money owed from rent arrears or damage must exceed the bond. When this is the case, take the following steps.

Send a completed Bond Extra Claim DH2053 form to the social housing provider. The claim must include:

  • A copy of the tenancy agreement, and
  • A copy of the Tribunal order from the NSW Civil and Administrative Tribunal (NCAT) specifying the amount owed to you, that is greater than the bond including interest, and
  • Evidence that all of the bond has been paid to you in full, and
  • A forwarding address for the tenant (if available).

Unsupported claims

If the social housing provider deems the claim unsupported you will be informed in writing about the decision.

If a social housing provider believes that the Bond Extra has been abused, it can recommend that you be excluded from further participation.

If the claim is deemed fraudulent, the matter will be referred to the social housing provider’s Legal Services for further action.

Summary of Bond Extra conditions

The Bond Extra is offered subject to the following conditions:

  1. The offer only applies to private rental properties covered by the Residential Tenancies Act 2010 when there is a signed residential tenancy agreement in place. A Bond Extra covers the fixed-term period of the lease, to a maximum of 12 months or until the termination of the tenancy, whichever occurs first.
  2. The Bond Extra offer only applies to properties with a maximum weekly rent equal to or less than the amount identified in the Bond Extra Offer letter.
  3. The social housing provider reserves the right to inspect the property before the completion of the condition report and in the event of a claim.
  4. All claims must be lodged to the social housing provider within three months of the expiry of the Bond Extra and you have claimed the rental bond in full and have an order from the NCAT for the amount exceeding the bond that is owed to you from rent arrears or property damage.
  5. All claims must include copies of orders from NCAT specifying the amount owed to you, that is greater than the bond and evidence that all of the bond has been paid to you in full.

Are all your questions answered?

For more information call the Housing Contact Centre on 1800 422 322, or visit your local DCJ Housing or Social Housing Management Transfer community housing provider office.

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Last updated: 09 Jul 2020