In a long-term lease agreement using Form 2, the landlord can ask the tenant to top up the bond amount after five years by giving them 120 days’ written notice of the request.
This can only occur if there are five or more years left on the lease, or the lease is extended so that there are five or more years left. The top-up process will be similar to the bond lodgement process via the RTBA Online website.
A landlord cannot require the tenant to top up the bond more than once in every five years of the lease.
If the landlord chooses to topup the bond, and the rent is less than $760 per week at the time of top-up, the total amount of bond after the top-up cannot be more than four weeks’
There are no limits to the bond top-up amount where the initial rent is more than $760 per week, or increases to more than $760 per week during the tenancy.
If the tenant does not pay the required amount on the date specified in the 120 days’ written notice, it will be treated the same way as rent arrears. For more information, view our Rent arrears page.
A landlord cannot require the tenant to top up the bond if the tenant has a short-term fixed agreement (up to five years).