At the end of a tenancy in NSW, one of the final steps is refunding the bond that was lodged at the start of the agreement. This guide walks you through how the bond refund process works, what’s required, and how to resolve any issues that may arise.
The bond should be paid back to the tenant in full at the end of their tenancy unless money is owed for rent, damages or other costs. In NSW, a tenant may also claim their bond in full directly through the bonds online portal.
The bond is held and is intended to cover things like:
Unpaid rent
Damage to the property beyond fair wear and tear
Cleaning or unpaid bills that the tenant is responsible for
✅ Best Practices for Landlords
Always complete thorough entry, routine and exit condition reports
Keep copies of photos, communications, and invoices for any damages or cleaning
Communicate openly with the tenant to avoid disputes
Steps to Refunding the Bond
Conduct a Final Inspection
At the end of the tenancy, you should carry out a final inspection and complete an exit condition report, comparing it to the condition report completed at the start.
Tenants should be present if possible
All cleaning and repairs should be completed before this inspection
Agree on the Bond Refund Amount
If both parties agree that the property has been left in good condition and there are no outstanding issues, the full bond can be refunded to the tenant.
If there are any damages, rent owing, or other deductions, the landlord must notify the tenant of the intended deductions and ideally reach a mutual agreement.
Submit a Claim through Rental Bonds Online
Either the tenant or landlord can initiate the bond refund by submitting a claim in Rental Bonds Online (RBO):
Tenant-initiated claim: The tenant can lodge a claim for the full bond. The landlord will be notified and has 14 days to respond, otherwise it will be paid out to the tenant.
Landlord-initiated claim: The landlord can also lodge a claim with proposed deductions. If the tenant agrees, the bond will be paid out as per the claim.
Getting Started on the Bond Release
Before submitting a refund, you should discuss any deductions first with your tenant. This may help avoid a dispute about a bond claim later, and may result in the tenant agreeing to the claim.
Log in to Rental Bonds Online: Landlords' login
If you (as the landlord) are starting the claim, you first need to enter the amount to deduct from the bond. ⚠️ This will be zero if you are releasing the full bond to the tenant.
Release of the bond (Via Bank account)
When tenants first register for Rental Bonds Online, they enter the details for the bank account where they would like any bond refund owed to them deposited.
All refund payments for landlords and principal tenants registered in Rental Bonds Online will be by direct deposit to their bank accounts.
What happens if there's a dispute?
If the tenant and landlord don’t agree on the amount to be refunded:
The party disputing the claim can apply to NSW Civil and Administrative Tribunal (NCAT) within 14 days.
The Tribunal will consider both sides and issue a legally binding decision.
Important: The bond is not released until the dispute is resolved or an NCAT order is made.
Read more about submitting a claim for the bond - https://www.service.nsw.gov.au/transaction/lodge-a-residential-bond-claim-landlords-and-agents
Recording a Bond Refund on RentBetter
At the start of the tenancy on RentBetter, you will have entered the bond amount into the platform. If you'd like to record a refund or claim, you can do this via the Bond section of the platform.
Click on the bond to open it in the side panel and then on 'Mark as bond returned'
Then on the following screen, you can enter the details of the return whether that be in partial or full, as well as upload any other documentation relating to the release of the bond:
Bond Refund FAQs
Can 'Wear and Tear' be claimed against the bond?
Normal wear and tear of the property caused by everyday use is not entitled to be claimed through the bond. Tenants are only liable for negligent, irresponsible or intentional actions that cause damage to the premises.
Examples of wear and tear vs damage:
Paint that has faded, cracked, or chipped is usually fair wear and tear, but unapproved painting may mean that the tenant is liable.
Markings on floorboards usually are usually general wear and tear, but badly scratched floorboards could mean that the tenants are liable.
Do I need the tenant’s permission to claim from the bond?
If the tenant agrees with your proposed claim, they can approve it through RBO. If they disagree or do not respond, you may still proceed after 14 days or take the matter to NCAT.
What if I want to make a partial claim on the bond?
You can specify the amount you wish to claim when lodging the refund request. The remaining portion will be proposed for refund to the tenant. If the tenant agrees, it will be processed. If not, the matter may need to go to NCAT.
If the bond claim is not made with the tenant's consent, you will need to give certain information to the tenant within 7 days of making your claim.
This information includes:
copies of the condition report completed at the end of the tenancy, and
any estimates, quotes, invoices or receipts for work being claimed from the bond.
Can I submit a claim if the tenant has already submitted a refund request?
Yes. If the tenant lodges a refund claim first and you disagree with it, you’ll be notified via RBO and have 14 days to dispute it. If you submit a counterclaim, the matter may need to be resolved through NCAT..
Need further help or information?
For additional help, you can contact Rental Bonds Online Security and Support directly by emailing rbosupport@customerservice.nsw.gov.au or call 1800 990 724.