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The establishment of a rental bond authority in Queensland has been approved by State Cabinet.
The authority will protect the rights of both landlords and tenants.
We've recently introduced a rental bond authority legislation into Queensland Parliament
and the idea of that is that an independent bond authority will be set up to hold bonds on behalf of tenants who rent from landlords.
Under this legislation the Tribunal can make an order and the rental bond money will be returned either in whole or in part to the tenant or to the landlord, whatever the case may be.
The return or non-return of rental bond money has been the cause of much anger, distress and at times financial hardship to both landlords and tenants.
The tenant usually needs the return of bond money to secure alternative accommodation.
On the other hand, many landlords are left out of pocket through damaged tenants of left behind.
They not only have to pay for repairs but are unable to re-let the property until the work has been completed.
The legislation demands a detailed report of the property's condition be lodged with the authority and a copy be kept by the landlord and tenant
so when the property is vacated there is no disputing the original condition.
Bond boards in other states are profitable and the profits are spent on worthwhile social projects such as rental advisory services and the construction of welfare housing.
Well in New South Wales it's been immensely successful. It has in fact contributed to the housing industry by some 6,500 homes since 1979
which have been built on the profits from the rental bond board down there.
Landlords will benefit from the provision of ex gratia payments in cases where tenants have left after creating more damage than can be covered by the bond.
The system will be more efficient as it will take less than 15 minutes for the vacating tenant to obtain the return of bond money over the counter
and four days if the money is being refunded through the mail.
Once the authority is running at a profit, the extra money gained from interest will fund community benefit projects
such as rental advisory services, assist research into rental patterns and help improve relationships between landlords and tenants.
The rental bond authority in Queensland is designed not to cost the Queensland public any money at all.
In fact initially there will be some outlays necessary for the setting up and operation of the board
but in the long term it's been indicated that the board will make a profit and that profit can go to housing and the industry associated therewith.