More than 2.3 million NSW renters face a game-changing reform as the government prepares to end a costly burden that forces many into debt.
Set to give renters cost-of-living relief, the Minns Labor Government has begun testing of a new system ahead of its launch in the middle of the year.
Smart Rental Bonds will allow tenants to digitally transfer their bond between properties for a fee of $25.
This means renters no longer have to have thousands of dollars for a second bond while waiting for their previous bond to be refunded.
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Premier of New South Wales, Chris Minns and Minister for Better Regulation and Fair Trading, Anoulack Chanthivong are joined by a renter Jess, to addresses the media to announce new cost-of-living relief for NSW renters. Picture: NewsWire / Gaye Gerard
The initiative will deliver on the Minns Labor Government commitment to introduce portable rental bonds system to provide cost-of-living relief.
Around 330,000 households are said to move each year, with most rental tenancies lasting less than two years leading to thousands of renters facing repeated upfront costs when changing homes.
In the 2024-25 financial year, around 330,000 new residential rental bonds were lodged in NSW.
The average renter is said to spend $4,000 each time they move with some having to take out loans if they face unexpected relocation.
That means a total of around $1.32 billion could be held lodged in portable bonds each year.
And around $9.2 billion if all of NSW”s 2.3 million renters moved their bonds to a portable holding over time.
Renters will be notified once a landlord or agent lodges a bond request online, the renter then logs onto Rental Bonds Online and chooses to either pay their new bond upfront or use Smart Rental Bonds to move their existing bond to the new property.
If the new bond is higher than the previous bond, the renter will pay the difference but if the bond is cheaper they will receive the difference back provided no agreed claim was made on the old bond.
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Smart Rental Bonds will allow tenants to digitally transfer their bond between properties for a small fee of $25
If a landlord makes a claim on a bond and the renter agrees, the NSW Government will pay the landlord upfront.
The renter will then repay the Government meaning landlords face no financial risk.
The area covers a somewhat grey area for rental bonds, one which embattled radio king Kyle Sandliands attempted to get into, before his Bond Replacement Product and Bond Reversal product ZeroBonds was found to be unlawful by the NSW Supreme Court om April last year.
Premier of NSW Chris Minns said this reform is about easing cost-of-living pressure and making renting fairer, simpler and more flexible for more than 2.3 million renters in the state.
“Every cent counts and making sure that renters don’t have to put money forward for a bond while waiting for a refund will save them thousands of dollars each time they move,” he said.
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Premier Chris Minns said this reform is about easing cost-of-living pressure and making renting fairer, simpler and more flexible. Picture: NewsWire / Gaye Gerard
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said Smart Rental Bonds is not only a win for renters, but a solution which won’t disrupt how landlords and real estate agents conduct their business either.
“No one likes having to put forward thousands of dollars while waiting days, possibly weeks for their old bond to come back – that’s money which renters need to set up their new home,” he said.
NSW Rental Commissioner Trina Jones said this technology is just one they are empowering renters by alleviating financial pressure.
“Allowing the bond to be a portable asset which can move between properties digitally will alleviate the financial strain which comes with moving such as having to hire a van or organise connecting utilities,” she said.
The Rent Fairy director and founder Sarah Elkordi said this would help renters to ease the cost of moving, including fees such as carpet steaming or pest control.
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Director and founder of The Rent Fairy Sarah Elkordi
“Saving that additional four weeks rent is very, very hard, especially in today’s world that we live in with everything that’s so expensive,” she said.
“Sometimes when you’re caught off guard and you get notice to vacate, you don’t have those kind of savings, you’re struggling to one secure a property, but then you’re also struggling to be able to secure a property in a time when you have the bond.”
However, Ms Elkordi spotlighted the standard and quality of properties should be of foremost focus for renters.
“I think that the quality and standard of properties that we’re seeing not just in Sydney, but across the whole of Australia is not what people would normally live in,” she said.
“Due to the crunch on price and increases on rental prices and cost of living people aren’t able to actually spend on maintenance in properties and fixing things, then others have no option but to move in.
“So, bonds, yes, fantastic that we can move over, but I think in my opinion there needs to be strict regulations around the quality of properties and the standards of properties when we’re paying top dollar for rent.”
Kyle Sandilands’s rental bonds option ZeroBonds was struck down by the Supreme Court. Picture: Daily Telegraph/Monique Harmer
In April last year, Rental bond alternative company backed by radio and TV personality Kyle Sandilands suffered a major blow, in a huge win for renters.
Then, the Supreme Court dismissed an application by ZeroBonds, a company offering an alternative to upfront rental bonds.
Previous reports showed Sandilands had a 95 per cent stake in ZeroBonds, which had billed itself as ‘The Ultimate Rental Bond Solution.’
The website previously stated the Australian Idol host was “the company’s co-founder and brand ambassador.”
NSW Fair Trading raised concerns about ZeroBonds’ model in 2024 and warned the company its approach to rental bonds did not comply with the law.
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ZeroBonds was ruled unlawful by the NSW Supreme Court.
The Supreme Court this month found the company’s model, which requires tenants to make a non-refundable payment instead of a bond, violates legislated protection for renters from unauthorised fees under the Act.
The court ruled that its Bond Replacement Product and Bond Reversal product were non-refundable and did not line with the Residential Tenancies Act 2010.
Residential bonds are not mandatory, however if one is collected, it must be lodged with the NSW Rental Bond Board, which is fee-free and provides protections under the Residential Tenancies Act.
Sandilands $100m radio deal with ARN is currently up in the air over a contract dispute.
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