Bond Extra

About the Bond Extra program

The Bond Extra program helps clients secure private rental accommodation by providing extra security to landlords and agents from the start of their tenancy. It guarantees up to $1500 to landlords or agents if they move out of a property and their bond is not enough to pay for back rent or damage to the property. 

How the Bond Extra works

1. Clients can be offered a Bond Extra by Homes NSW or by a Social Housing Management Transfer community housing provider.
2. Clients show the offer letter for the Bond Extra to the agent or landlord they want to rent from.
3. If the landlord or agent accepts, the Bond Extra will be available to them for the length of the client’s fixed-term tenancy. This can be up to 12 months or until their tenancy ends (whichever is first). 

Eligibility for the Bond Extra program

You may be offered a Bond Extra if you:

• have been assessed as able to afford private rental
• have a household income within the income limit at the time of application
• have already looked for private rental accommodation without success
• do not have a current Bond Extra
• have agreed to the conditions for receiving a Bond Extra
• are trying to rent an eligible property.

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

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
• 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
• making courtesy contact with tenants if rent falls behind.

Liaise 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 happy with the tenancy, we encourage you to continue the residential tenancy agreement.

How landlords and agents make a claim against the Bond Extra

How to claim and time frames

To make a claim:

• the money owed from rent arrears or damage must exceed the bond
• the agreement and premises must be covered by the Residential Tenancies Act 2010.

If you plan to lodge a claim, you must notify the social housing provider within 28 days of:

• the end of the tenancy, or
• the expiry of the Bond Extra,

whichever happens first.

Steps to claim the Bond Extra

1. claim the rental bond in full
2. seek an order from NCAT for the amount exceeding the bond owed to you from rent arrears or property damage
3. send a completed Bond Extra Claim DH2053 form to the social housing provider.

The claim must include:

1. copy of the tenancy agreement
2. 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
3. evidence that all of the bond has been paid to you in full
4. a forwarding address for the tenant (if available).

The social housing provider must lodge all final claims with evidence within 3 months of the expiry of the Bond Extra.

Unsupported claims

If the social housing provider decides your claim is 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 are excluded from further participation.

If your 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 Response Centre on 1800 422 322, or visit your local Homes NSW office or Social Housing Management Transfer community housing provider office.