What To Do With Bond?

[grotto]

I'm after a bit of advice.

I pay the bond I receive from tenants to the Bond Deposit place (I forget the proper name).

I'm just about to send them another cheque for bond I've received, but was talking to someone who has a rental, and they said just to keep it. They said they always do this, and have never had any problems. They reckoned they took their last tenants to the tribunal over damage/unpaid rent, and the tenants brought up the issue of bond not being paid over, but they still won their case, and got no reprimand for holding the bond themselves.

Any know the down side of retaining the bond yourself?

[drelly]

Yes... a mediator told me that you can be fined up to $750. They were very lucky.

It's pretty stupid to hold onto a bond if you know better. I suspect that the only reason that they weren't fined is because the tenant needs to counter-claim. If they did, the mediator would have had to rule under the Residential Tenancies Act.

[Marcus]

I agree with everything Dave has said.
You get 23 working days to lodge bond monies received. The bond centre will then send you and the tenant acknowledgement of this along with refund forms for when the tenancy ends. A tenant that is "in the know", or that reads the front page of the standard res. tenancy agreement purchased at bookstores post shops etc will have you over a barrel.

Don't bother trying to cut the corner on this one. Your friend has merely been lucky so far.

Regards.

[pixie]

Give the bond to Tenancy Services - there is no point in being on the wrong side of them if you need their assistance.

Two things I wish I did more of:
Firstly - save yourself admin by getting the bond payment as a separate cheque made out to tenancy Services. Then if it bounces it is their headache to sort out - not yours.
Secondly - don't go writing cheques out to tenancy services until after any cheque you have been paid has been cleared by the bank. In the past I have been a bit over efficient by paying it out within days (as part of setting up my own admin on the tenancy). They pay you, their cheque bounces but meanwhile you have already paid the dosh across to tenancy services. This happened to someone I know of. I don't know how it got sorted.

[drelly]

Hey Pixie,

There's a very good reason I can't remember for not having bonds paid directly to tenancy services. Can anyone help? Perhaps it's been discussed previously?

[Marcus]

Hey Pixie,

There's a very good reason I can't remember for not having bonds paid directly to tenancy services. Can anyone help? Perhaps it's been discussed previously?

If the cheque proves to be made of latex and bounces, you are automatically on the back foot and :
A. You may have to serve a 10 day notice to remedy to try and get the money from them (assuming they may now have taken possession of your IP).
or
B. If you had a clause in your agreement that "the tenancy" was conditional upon receipt of bond as cleared funds, you are still having to evict and start looking again.

I'm still liking the cash option.

Regards.

[grotto]

Thanks

Thanks for the quick replies.

I've always paid bond over, and didn't really want to hand onto it, but was thinking maybe I was being naive.

cheers

[Fritz]

how much bond

Hi ya,

quick survey, how much upfront bond do you guys and PM's take ?

We take the weekly rent and multiply it by 3.9 to the next ten dolllars. Then the question of 'how many weeks rent is this' meaning 'when can I stop paying rent before I move out' has come to a surprising stop.

We ask for all of it up-front (no exemptions not even WINZ) in cash. No bond, no key or signed RTA, and our option contract makes that clear. Bounced cheque still makes the tenancy binding, no matter what clause, and you then have to go to TS to sort it out. Not a good start, and labour intensive.

We are constantly surrprised taking over rentals there is either minimum bond or no bond. And yes, agree, SEND it to TS. You got away on this one but I would not retain any bond past the 23 days unless you want to start paying some off your rent money in fines. They are getting bigger and more of them.

Fritz.

[Julian]

And there I was thinking the bond was meant for the landlord's social fund! Hell, I would have been insisting on four weeks bond, and cashing it down at a local bar - could have provided a couple of night's worth!
Julian

[Paren]

Bond Money

We have just one property and I have always paid over the bond as I understood it to be a legal requirement. However, I am in a situation where I forgot to bank the cash and send in the cheque. If I send the cheque now (some months down the track from occupancy) am I still going to get fined? Keen to know that one!

Incidentally- how much?: We only demand 2 and 2 - two weeks in advance and 2 weeks bond. This seems to be expected by tenants and we feel is reasonable. However I guess it could be a disadvantage if you get a really lousy tenant trumping up damages.

Cheers

[Marcus]

Hi Paren and welcome to PT,

If I send the cheque now (some months down the track from occupancy) am I still going to get fined?

From what I understand the answer is no. You may get a letter advising you of your obligations telling you what you should have done. I have spoken with people that have been in a similar situation to you that have sent bond monies in late without incident.

One friend I have that is a property manager lodges his bonds received in monthly bundles so inevitably some do run slightly over the 23 working day limit.

Incidentally- how much?: We only demand 2 and 2 - two weeks in advance and 2 weeks bond.

I collect the eqivalent of 4 weeks rent as bond and one weeks rent in advance (in cash) prior to handing over keys.

Regards,
Marcus.

[fudosan]

I collect the eqivalent of 4 weeks rent as bond and one weeks rent in advance (in cash) prior to handing over keys.

Very good tip. Thanks Marcus

[Paren]

Hi, and thank you for your welcome Marcus

I have spoken with people that have been in a similar situation to you that have sent bond monies in late without incident.

I feel a little better about sending the cheque now!
Perhaps I will sleep after all.

Karen