18 Bonds to be no more than 4 weeks’ rent

(1)

A landlord shall not require payment by way of bond of an amount greater than 4 weeks’ rent lawfully payable under the tenancy agreement.

(2)

On the lawful increase of the rent, the landlord may require payment by way of bond of a further sum not exceeding the amount by which the rent payable for 4 weeks has been increased.

(3)

On the decrease of the rent, the amount by which the total sum already paid by way of bond exceeds the rent payable for 4 weeks following the decrease shall, on application to the chief executive by the person who paid the bond, be refunded to the tenant.

(4)

Requiring payment by way of bond of an amount greater than that permitted by this section is hereby declared to be an unlawful act.

Compare: 1973 No 26 s 21; Residential Tenancies Act 1978–1981 s 32(1), (1A), (1B) (SA)

Section 18(3): amended, on 18 August 1992, by section 19 of the Residential Tenancies Amendment Act 1992 (1992 No 79).