BOND ACCRUAL POLICY

Homeswest charges a rental bond for all ingoing tenants and tenants requesting a transfer, equal to four weeks market rent. In recognition of the fact that many Homeswest tenants are on reduced incomes, a Homeswest bond does not have to be paid in a complete lump sum. Homeswest tenants may pay off their bond in affordable installments. The bond will assist tenants to avoid accumulating a debt on cessation of the tenancy. They will also be able to use any residual bond money to help secure new accommodation.

Ingoing Tenants 1. All ingoing tenants will be required to pay a rental bond equal to four (4) weeks cost or market rent.	1.1 This amount will not vary once the bond threshold has been reached and payments have ceased. 1.2 Any increase in the market or cost rent for the property before the bond threshold has been reached, and payments are still being made, will be included in the bond payment. 1.3 Discretion may be exercised where it is considered that the payment of the bond would be inequitable. Example: A new tenancy being created due to the fact that an existing tenancy is being transferred into the name of a surviving senior on the death of his/her partner, after a long tenancy.
2. The bond will be held in the names of all signatories to the Tenancy Agreement.
Tenants Transferring (Wait turn and Priority) 3. All tenants transferring on a wait-turn or priority basis to alternative accommodation will have their existing bond or their key deposit transferred to the new tenancy.	3.1 This will apply to tenants transferring at Homeswest’s request. 3.2 If a rental bond has been paid on the previous property, this will be transferred to the new property. The tenant being required to make up any shortfall if the full bond has not been paid on the previous tenancy or a higher market value rent on the new property.

Bond Payments 4. Bond payments will consist of an initial minimum payment of $50, with the remainder to be repaid in affordable installments.	4.1 In cases of hardship, this figure may be variable and negotiated with the tenant.
5. Tenants will be required to pay a minimum bond accrual repayment of $5 per week from the date of the commencement of the tenancy.	5.1 At the commencement of the tenancy, a tenant will be required to pay: two weeks rent in advance $50 bond payment or negotiated amount two weeks bond accrual payments in advance. 5.2 Bond accrual payments are payable through all existing rental payment options, viz: Direct Deduction (Centrelink) Direct Debit (from a Bank account) Direct Deduction from wage/salary Homeswest Card
6. A bond accrual payment takes precedence over a tenant’s rental payment.	6.1 A bond accrual payment must be fully balanced before any monies are credited to a tenant’s rental account. 6.2 A rental surplus will be transferred to make up for any deficiency in a tenant’s bond accrual account.
7. Homeswest will lodge all bond monies in a trust account.
Vacating Bond Payments 8. No monies can be deducted from a bond accrual account until the vacation of the property.	8.1 Any debt related to a tenancy while a tenant is in occupation can not be taken from the bond, but must be repaid by lump sum or in affordable installments.
9. Upon vacation of a Homeswest property, a tenant will be repaid the full bond amount, less any deductions for a debt relating to the property.	9.1 e.g.: rental arrears, tenant liability, water consumption. 9.2 Repayment will occur as soon as possible after the finalisation of vacation of the property. 9.3 See also 3.2 if transferring to alternate Homeswest accommodation.

Disposal of Bond Monies 10. Homeswest is exempt from the clauses of the Residential Tenancies Act relating to the collection and disposal of bond monies. At finalisation of an account, Homeswest will offset any HAL debt against the bond monies with the tenant receiving the credit of the account.	10.1 The tenant will be notified of the status of the account, and has the right of appeal against any such decision.
Community Housing Programs 11. For all Community Housing properties (CFAP, CDHP, CHP, CAP, J/V), the bond will be paid as a lump sum at the commencement of the tenancy and not on an accrued basis.