BondAssist is compliant under Section 18A of the Residential Tenancies Amendment Act 2010 which permits Landlords to obtain guarantees in respect of tenant obligations.
The payment of the fee by the tenant for the guarantee is not deemed payment of ‘outgoings’ or ‘key money’. BondAssist is a Guarantee (which is permitted under the Act), not an insurance policy, and is optional, therefore no element of ‘demanding’ or ‘requiring’ the tenant to purchase BondAssist.
With BondAssist no bond is paid or lodged with the Department of Building and Housing, therefore Section 18 is not breached, allowing us to offer more than 4 weeks maximum cover.
Section 77 of the Act, which sets out the Tenancy Tribunal’s jurisdiction, states that the tribunal has jurisdiction over “any tenancy to which the act applies” in relation to determining disputes (i.e. obtaining a tribunal order).
This means that whether or not a bond has been lodged is irrelevant to whether the tribunal has jurisdiction – the tribunal can hear all disputes relating to residential tenancies.