Help. We didnt lodge the lodge the bond

[jkc]

Hi. Please help. We are first time landlords and overlooked lodging the bond with the tenancy tribunal. Yes i know, serious issue. We are 8 months into the tenancy and need to forward this to the TT but the fine is more than the bond amount. The tenant has 2 dogs that were locked inside so they have deficated on the carpet daily. It is ruined and needs replacement. If we lodge the bond and get fined for the delay then we effectively has no bond to pay for the carpet repairs. I need some advice as to what to do. Lodge the bond, receive a fine then lodge a claim for damages? The tenant has not signed the bond lodgement form so we will need to tell her we didnt lodge it. With the trouble she has caused us im sure she will use this as an opportunity against us. Help

[Keys]

Lodge the bond now. Put all of the tenant details in. Send it away without her signature. Terminate the tenancy as soon as you can.

[vegemiteman]

I also did not lodge a bond. i got legal advice to lodge it despite a forthcoming tribunal hearing. I got screwed by the biased judge over all the other claim issues - but surprisingly was only fined $100 for not lodging bond. I didn't mind this fine as it was fair - I had not lodged bond so i paid a small penalty.

Good luck

Vegemiteman

[jkc]

Ok thankyou for your input. I will look to lodge the bond and be done with her

[td91]

Maybe use a property manager for a bit too. They're excellent for catching dogs on properties where they aren't permitted and they lodge your bond.

Bad tenants rely on private landlords who don't have a clue.

[teamchase]

Maybe use a property manager for a bit too. They're excellent for catching dogs on properties where they aren't permitted and they lodge your bond.

Bad tenants rely on private landlords who don't have a clue.

very true comment and good idea here, a pm will handle the process effectively if you cant

lodge the bond immediately, your holding money that isn't yours.

[Razzzor]

very true comment and good idea here, a pm will handle the process effectively if you cant

lodge the bond immediately, your holding money that isn't yours.

It's not the governments to hold onto either. I know someone who's had rental properties for 30 years and never lodged a bond, ever. When it comes to paying it back, they simply have to find it out of their own pocket.

I don't really understand how I can be fined for it, it should be optional. In fact I didn't even realise you can be fined for it. How about instead of calling it bond, I just call it some other fee, maybe 4 weeks advance payment which is reimbursed post tenancy, on top of the already 2 weeks in advance. To the tenant, it's pretty much bond. If DBH come knocking I just tell them there was no bond, it was advance rent, so eff off.

How much interest does DBH collect with holding all these bonds... they certainly don't pay it back to the true owner, which should probably be the tenant.

Well, that's my morning rant

[Hound]

On occasion I've lodged a bond late. You don't get fined automatically, you just get a reminder of your bond obligations in writing. Lodge it immediately, it won't be a problem unless the tenant chooses to complain through tenancy services.

[Edwood]

It's not the governments to hold onto either. I know someone who's had rental properties for 30 years and never lodged a bond, ever. When it comes to paying it back, they simply have to find it out of their own pocket.

I don't really understand how I can be fined for it, it should be optional. In fact I didn't even realise you can be fined for it. How about instead of calling it bond, I just call it some other fee, maybe 4 weeks advance payment which is reimbursed post tenancy, on top of the already 2 weeks in advance. To the tenant, it's pretty much bond. If DBH come knocking I just tell them there was no bond, it was advance rent, so eff off.

How much interest does DBH collect with holding all these bonds... they certainly don't pay it back to the true owner, which should probably be the tenant.

Well, that's my morning rant

I wonder if you're a teenager... Your rationale is 'i dont like the law, so i dont obey it'. You legally have to lodge a bond with tenancy services. You legally can not charge 4 weeks rent in advance. (2 weeks max). I wonder if you evade tax using the same logic.

jkc - just lodge the bond today. I have, on several occassions, neglected to lodge the bond for many many months. When i've eventually got around to it, i just submit the bond lodgement (and payment), and the world continues to revolve. No fines.

It sounds to me like you should also engage a property manager immediately. Give them the management of the property and they can deal with all the hard stuff of booting out your tenant, dealing with the tribunal, etc... they'l earn their money many times over. Just dont be a <expletive> and take it back off them as soon as they've found you a decent tenant.

Good property management is largely about following robust, reliable processes... something a decent management company will have down pat.

If you dont want to engage a PM, just call tenancy services and talk with them about your issues. (I wouldn't volunteer your tardy bond info).

edit: If at all possible, you should get the tenant to sign the bond lodgement. Bond refunds become a lot more complicated in when signatures dont match.

Good luck!

[teamchase]

It's not the governments to hold onto either. I know someone who's had rental properties for 30 years and never lodged a bond, ever. When it comes to paying it back, they simply have to find it out of their own pocket.

I don't really understand how I can be fined for it, it should be optional. In fact I didn't even realise you can be fined for it. How about instead of calling it bond, I just call it some other fee, maybe 4 weeks advance payment which is reimbursed post tenancy, on top of the already 2 weeks in advance. To the tenant, it's pretty much bond. If DBH come knocking I just tell them there was no bond, it was advance rent, so eff off.

How much interest does DBH collect with holding all these bonds... they certainly don't pay it back to the true owner, which should probably be the tenant.

Well, that's my morning rant

the whole point in bond lodgment is there is a neutral third party holding the money, a landlord is not a neutral third party.
"Department of Building and Housing (DBH) client services manager Jeff Montgomery says, “Bond money does not belong to the landlord and cannot be held in a private bank account. It is the tenant’s money held in trust by the government until the end of the tenancy or a circumstance that enables the landlord to claim the bond”

with regards to the interest made, i would agree if we paid for a bond to be lodged but we don't (well technically we pay $5 for a cheque, but thats neither here nor there).

Id suggest brushing up on your legal rights and obligations at the DBH website, its free, and may save you a headache later.

[Razzzor]

I wonder if you're a teenager... Your rationale is 'i dont like the law, so i dont obey it'. You legally have to lodge a bond with tenancy services. You legally can not charge 4 weeks rent in advance. (2 weeks max). I wonder if you evade tax using the same logic.

jkc - just lodge the bond today. I have, on several occassions, neglected to lodge the bond for many many months. When i've eventually got around to it, i just submit the bond lodgement (and payment), and the world continues to revolve. No fines.

It sounds to me like you should also engage a property manager immediately. Give them the management of the property and they can deal with all the hard stuff of booting out your tenant, dealing with the tribunal, etc... they'l earn their money many times over. Just dont be a <expletive> and take it back off them as soon as they've found you a decent tenant.

Good property management is largely about following robust, reliable processes... something a decent management company will have down pat.

If you dont want to engage a PM, just call tenancy services and talk with them about your issues. (I wouldn't volunteer your tardy bond info).

edit: If at all possible, you should get the tenant to sign the bond lodgement. Bond refunds become a lot more complicated in when signatures dont match.

Good luck!

You're making quite a few assumptions on me there on completely unrelated things. No I'm far from a teenager. I have an accountant which handles all taxes, I wouldn't risk tax evasion.

I never said I don't lodge the bond, I'm merely speaking from a 'what if' situation. All my bonds are lodged properly, and probably always will be. It's probably also considered illegal for a tenant to not pay rent, and cause damage to property - they still do it though, don't they.

But yes there are many things wrong with the law, especially for landlords. Just look at the thread about the property owner who has squatters/trespassers for over a year and can't even get them out, there's something really wrong with the law in that situation.

[Keys]

Just look at the thread about the property owner who has squatters/trespassers for over a year and can't even get them out, there's something really wrong with the law in that situation.

Absolutely not. They just didn't use the appropriate law to sort things out.

[PTWhatAGreatForum]

With the trouble she has caused us im sure she will use this as an opportunity against us. Help

And so she should. You should be ashamed to have the audacity to come here and complain about her dogs when you haven't lodged bond, despite it being common knowledge you are required to do so. For this reason I don't buy the whiney and pathetic "we're first time landlords" line. I'm sure the tenant has an excuse too. This is not an esoteric angle of legislation.

While overseas I lost bond to someone who spent it and couldn't afford to pay it back when I moved. I have no sympathy for you or your tenant. Sounds like you deserve each other.

[Razzzor]

Wow someone woke up on the wrong side of bed.

[Perry]

Curious media item here.

Is it usual to pay the 'fine' for bond non-lodgement to the tenant? Or is that item just sloppy reporting?

The TTKK also awarded the couple $500 because Eblett had failed to lodge their bond within the 23 working day timeframe required by the Residential Tenancies Act.

The other aspects of the claim were a bit hair-raising.