Who are boarders and lodgers?

Boarders and lodgers live in premises where the landlord (or a caretaker living on the premises) keeps control of the premises. The landlord may be the owner or a tenant who has a residential tenancy agreement in their name only (a head-tenant).

Boarders usually receive meals as part of their agreement. Lodgers do not.

So what? - Legal status
Boarders and lodgers have few rights under NSW laws. They are not covered by the Residential Tenancies Act 1987 – the Act that sets out tenants' rights. However, you are likely to be a tenant covered by this Act, rather than a boarder or lodger, if you:

• have exclusive access (no-one else uses your room and you can lock it)
• do not get meals, linen, or cleaning as part of your agreement
• have your own cooking facilities
• do not have house rules enforced.

The Consumer, Trader and Tenancy Tribunal (CTTT) can decide whether you are a tenant or a boarder/lodger:
if you claim rights as a tenant at the CTTT in a dispute with your landlord, or
if your landlord evicts you (or threatens to) and you challenge this in the CTTT.
If the CTTT decides it has jurisdiction to handle the matter then you are a tenant. If not, you are a boarder/lodger.

Is there any minimum or maximum period of a tenancy agreement?

No.

The agreement should define a period of time called the 'fixed-term'. Generally, tenancy agreements have a fixed term of either 6 or 12 months but the parties can agree to have a tenancy agreement for any length of time.

When the fixed-term period ends the tenancy agreement does not end unless it is terminated by the tenant or the landlord. If it is not terminated, the agreement becomes a continuing agreement with the same terms and conditions.

Interest on the rental bond

The rental bond does accumulate interest. But don't expect you can get much even you have a few thousand dollars sitting with the bond board for quite some years.

Let's have a look what the legislation says:

Under Landlord and Tenant (Rental Bonds) Act 1977 No 44

11A Payment out of amount equivalent to interest

(1) This section applies to amounts paid out by the Board under section 11 on or after 1 January 1990 in respect of rental bonds lodged with the Board before, on or after that date.
(2) The total amount available to be paid out in respect of a rental bond is to include an amount equivalent to interest at the rate prescribed by the regulations for the time being:
(a) calculated on the minimum monthly balances from time to time of the rental bond held by the Board, and
(b) compounded as prescribed by the regulations.
(3) In subsection (2), minimum monthly balance means the minimum balance during January 1990 or any later, complete named month during which money in respect of a rental bond is held by the Board.


Landlord and Tenant (Rental Bonds) Regulation 2003
[2003-608]

10 Interest payable on rental bonds (section 11A)

(1) The object of this clause is to fix the rate at which interest is payable, and the period over which interest is to be compounded, on a rental bond that has been lodged with the Board.
(2) For the purposes of section 11A (2) of the Act:
(a) the prescribed rate at which interest is payable on a rental bond is the rate payable (as at the last day of the month for which the interest is being calculated) by the Commonwealth Bank of Australia on a Streamline Account balance of $1,000, and
(b) the interest payable on a rental bond is to be compounded on 30 June and 31 December in each year.


Now, what on earth is the interest rate?
Check this link: http://www.commbank.com.au/personal/accounts/streamline/rates-fees/
You will find that the intere rate the above talking about is: 0.01% p.a.

So if you have $5000 as a rental bond and leave it for 3 years. The accumulated interest on your bond in the end of 3 years is a 'mighty' $1.50. LoL!

Can the landlord keep the bond with him/herself?

No.

The landlord or agent must send any bond paid to NSW Fair Trading, within 7 days. A lodgement form is needed to do this and can be obtained from any Fair Trading Centre or by calling 13 32 20. Lodgement forms cannot be downloaded from this website as they have a unique barcode.

Bonds can be lodged by posting the Lodgement Form along with a cheque/money order for the bond amount to Renting Services, Locked Bag 19 Darlinghurst, 1300. Bonds can also be lodged in person at any Fair Trading Centre during office hours, 8:30am - 5:00pm Monday to Friday.

After the bond is lodged, all parties should receive an advice of lodgement that includes the unique rental bond number. If the advice is not received, the tenant should contact Fair Trading to confirm that the bond had been lodged. It is an offence for a landlord/agent to request a rental bond from their tenant and then not lodge it with Fair Trading.

During the tenancy, the bond is held by the Rental Bond Board and accumulates interest. The Rental Bond Board is the independent custodian of rental bonds paid by tenants to landlords for residential tenancies. NSW Fair Trading administers the day to day functions of the Board, providing rental bond lodgement, custody, refund and information services.

The maximum bond that the landlord can ask for

Charging a rental bond is not mandatory, however the maximum rental bond that can be asked for is:

• four weeks rent, for unfurnished premises
• six weeks rent, for fully furnished premises with a rent of $250 or less per week
• unlimited, if the rent for fully furnished premises is more than $250 per week.

The amount of bond that is to be paid (if any) must be written on the agreement.
Demanding or receiving a written guarantee from a tenant, or somebody on their behalf, is not permitted. A rental bond must be in the form of money and not as a guarantee.

The above is applied in NSW and for residential tenancy.

Documents that must be given to tenants before they move in

Before a tenant enters into a tenancy agreement (lease) or moves in to a residential property they must be given the following documents by the landlord or the landlord's agent:

• a copy of the proposed tenancy agreement (filled out by the landlord or agent where appropriate in the spaces provided) which comes in two parts: 

1. the terms of the agreement
2. a report on the condition of the property (called the condition report)

• a written statement of the costs payable by the tenant on signing the agreement  
• a copy of the Renting guide.

 The tenant must be given time to read and understand the terms of the tenancy agreement before being asked to sign it.
 

Attachement:

1. Sample residential tenancy agreement
2. Renting guide