Renters get long awaited break
By Natasha Fujimoto
WIDELY recognised as one of life’s most stressful events, moving house often combines significant financial strain with physical exhaustion and the emotional upheaval of leaving a familiar environment.
For renters, these pressures are compounded by a deepening financial crisis and intense competition, particularly in inner-city Melbourne suburbs, where rental listings can attract more than 50 to 100 applicants per property. This demand is driving up rents, which already consume around 30 per cent of tenants’ pre-tax income on average.
For Shepparton local Jackson, moving to the city after school was a thrilling rite of passage and a brave first step towards independence. However, like many others, it soon became a demoralising and relentless exercise, as he struggled to secure a rental and faced repeated rejections.
Finally securing an exorbitantly priced two-bedroom “dingy box” in Carlton with a friend, Jackson said it was when the lease ended and he had to find a new place that the financial logistics of renting in Melbourne became “scary”.
“Paying a month’s bond and rent upfront was hard enough when I moved into my first place in Carlton. But having to come up with it all over again to secure a new place felt almost impossible, despite a steady income — especially with no guarantee we’d get our original bond back after the final inspection. When you need to move quickly and your spare cash is tied up in a bond, the pressure is intense.”
A gut-wrenching dilemma faced by many across the state — and indeed the country — a new state government initiative, the Portable Rental Bond Scheme, will come into effect on July 1. It will mean renters no longer need to save thousands for a second bond, instead allowing them to transfer their existing bond to a new property.
In essence, renters will no longer be out of pocket while waiting for a bond refund.
From the first day of the new financial year, renters across Victoria will be able to apply to transfer their bonds online through the Residential Tenancies Bond Authority system.
Often at the mercy of property managers, with limited recourse if a bond refund is disputed, the government has also introduced a requirement for rental providers to present evidence before making any claim on a bond from October this year.
Pleased with the new Portable Rental Bond Scheme, Jackson said:
“When so much of life is a challenge, and where things don’t always go your way — especially when it comes to living arrangements — having flexibility with your bond payments, at least, is an important thing.”
