Renters across New South Wales can now access Smart Rental Bonds statewide, allowing them to transfer an existing rental bond to a new property instead of finding thousands of dollars for another bond while waiting for their previous one to be returned.
The Minns Labor Government has expanded the scheme across the state after an initial rollout in Penrith, Parramatta and the Central Coast last month. The trial phase has already facilitated almost $1 million in successful bond transfers, allowing the statewide launch to take place months earlier than originally planned.
Under Smart Rental Bonds, eligible renters can move the bond attached to their current property directly to their next rental. The NSW Government says the system could help renters avoid finding up to $4,000 upfront when changing homes, providing relief at a time when moving costs can place significant pressure on household budgets.
The process begins after a landlord or property agent submits a bond request online. The renter is then notified and can log into Rental Bonds Online to decide whether to pay the new bond in the traditional way or transfer their existing bond through Smart Rental Bonds. A $25 fee applies when using the transfer system.
Where the bond required for the new property is higher than the renter’s existing bond, the renter must pay the difference. If the new bond is lower, the remaining amount can be returned to the renter, provided there is no agreed claim against the original bond.
The scheme also includes arrangements designed to protect landlords. If a landlord at the previous property has a finalised claim against the renter’s bond, the NSW Government will pay the landlord upfront, with the renter subsequently repaying the government. This means landlords do not have to wait for the transferred bond or carry the associated financial risk.
Premier Chris Minns said the initiative was intended to address one of the significant upfront costs faced by people moving between rental properties. He noted that more than two million people rent in NSW, saying the new system would make moving home easier by removing the need to temporarily provide a second bond.
Housing Minister Rose Jackson said having to pay a new bond before receiving the previous one back could create considerable financial pressure. She described the transfer system as part of broader efforts to improve housing stability and make renting less financially burdensome for people across the state.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the statewide availability of Smart Rental Bonds would give renters an opportunity to avoid what he described as the “double bond” problem when moving properties. He encouraged renters to consider the scheme when they next change homes.
NSW Rental Commissioner Trina Jones said moving was already among the more expensive and stressful experiences for renters. She said Smart Rental Bonds was designed to reduce some of that pressure by allowing people to avoid finding additional money for a new bond while waiting for their previous bond to be refunded.
The statewide launch is part of the NSW Government’s broader rental reforms, which also include banning no-grounds evictions, limiting rent increases to once a year, providing fee-free rent payment options, banning background-check fees and making it easier for renters to keep pets.
With the system now available across NSW, renters preparing to move can use Smart Rental Bonds through Rental Bonds Online to transfer their existing bond rather than paying a full new bond upfront. The NSW Government has provided further information about eligibility and the process through its rental services website.
