30th September 2012
Does your Property Manager increase the Bond held with every Rent increase?
As a general rule, a security bond will generally amount to the equivalent of four to six weeks' worth of rental payments for the property being leased. This means that if a tenant falls into arrears and absconds, the relevant number of weeks of lost rental income can easily be recovered from the bond, provided your Property Manager has an arrears procedure in place.
Therefore, it is a necessity to increase the bond amount when implementing rental increases.
Tenants need to be given written notice of the increase in the timeframe required by legislation in your state or territory and to lodge the additional funds with the relevant tenancy authority.