Have you ever been a tenant and asked to transfer your bond from one property to another? Or, have you been a landlord and had a Tenant ask to transfer the bond from one property to another?
To the inexperienced this could seem like a reasonable thing to do. But, please…don’t ever take this risk. Yes, risk. I’m forever talking about risks in my articles and that’s because Real Estate is full of risks that need to be avoided.
Depending on how you view a bond could result in how you interpret this situation. Technically the bond belongs to the Tenant and it is allocated to the property they are renting. So what happens if you allow a tenant to transfer their bond from one property to another? The property owner with the departing tenant ends up with no bond for any potential cleaning, damages or monies owing! Then, how is that owner going to recover the money if the tenant refuses to pay? Pay to go though the courts? Pay for a bailiff? Pay for a debt collector? It really wouldn’t be worth it so the best thing to do is avoid the situation completely.
Even when I have a tenant who I think will leave the house perfect, I still wouldn’t allow it because that is not acting in my principal’s (the landlords) best interest.
Now’s the time to ask…is your investment protected by a Property Manager with experience and knowledge?