RENTAL BONDS ONLINE

A New System to Reduce Misappropriation of Bond Money

The misuse of trust money is still a hot topic in Real Estate. We have previously written about bond theft and how it is the most common cause of misappropriation of funds in the industry. Unfortunately the message seems to still have not gotten through with agents continuing to misappropriate bond monies for their own gain.

The latest case in Victoria saw the agency representative (and Director), accept bond money into his own personal account before passing on to the Residential Tenancies Bond Authority. Then yet again, he accepted bond returns into his own personal account before passing back on to tenants, resulting in a five year ban.

Is it really worth the risk?

Are agents ill informed or is it just a case of gross negligence and fraud? It is an issue that has plagued the industry for too long and now some states have introduced a new system to help fix the problem.

ELIMINATING BOND THEFT WITH RENTAL BONDS ONLINE

Rental Bonds Online in NSW has been launched to streamline the payment of bonds and make the whole process more transparent for tenants. The system is designed to help tenants, agents and landlords lodge, manage and refund bond money simply and easily – and most importantly… correctly.

HOW DOES IT WORK?

The system offers a transparent system that allows users to set up their own private and secure account to:

  • Pay bond directly to NSW Fair Trading with a credit card or BPAY
  • Check the status and progress of your bond lodgement or refund
  • Receive alerts via email or SMS in relation to your
  • Submit a claim for your bond refund once your tenancy has ended

HOW TO SIGN UP?

For Agents and Landlords

Simply Register for an account online and NSW Fair Trading will send you an email with log in information

For Tenants

You need to be invited by your agent or landlord to utilise the system. They will send you information on how to register as well as this Information Booklet. If your agency is not registered, you are entitled to ask them to register with the system to manage your bond.

Having a clear and transparent system will hopefully reduce the incidence of agents misappropriating bond money. It gives tenants confidence that their bond money is in safe hands.

The Rental Bond service is available in South Australia, Victoria and will roll out in other states as the technology develops.

Are you currently using a version of Rental Bonds online in your office? Do you feel that this process helps make your job easier? Are there any drawbacks to using bonds online? We’d love to hear your thoughts/comments.

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~ Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 19 years industry experience. Don’t trust just anyone with your trust accounting. Trust End of Month Angels and get back to what you do best – growing your business.