Bond change to save renters
The NSW Government has committed to developing the nation's first Portable Rental Bonds Scheme.
This $6.6 million initiative will allow millions of renters across New South Wales to transfer their rental bond from one property to another, in order to provide cost-of-living relief.
Currently, over 330,000 tenancies change hands annually across the state, with the average tenancy lasting just 1.6 years.
High rents, low vacancy rates, and general cost-of-living pressures compound the financial strain on renters, who typically face moving costs averaging $4,000.
One of the most significant financial hurdles is the need to pay a new bond before the previous one is refunded.
The new scheme addresses this issue by enabling eligible tenants to digitally transfer their existing bond to their new rental property.
The government says the measure maintains the integrity of the bond system, ensuring homeowners retain security while significantly improving cash flow for renters and reducing their financial stress.
Premier Chris Minns highlighted the stress and expense associated with moving house, noting that renters can be out of pocket for several weeks during the transition period.
“The NSW Government’s portable bonds scheme will give cost-of-living relief to renters moving homes, by making sure they don’t have to set aside extra money while they wait for their bond to be refunded,” Minns said.
The development of the Portable Rental Bonds Scheme, spearheaded by the Rental Commissioner, is currently out for public tender.
This initiative involves upgrading the existing rental bonds system, with completion anticipated in 2025.