Moving is tough enough without paying for two bonds at once. Until now, tenants usually had to find a new bond before the old one was refunded.
Smart Rental Bonds change that. According to the NSW Government, every renter in NSW has been able to use them since 16 September 2026. They let tenants move their existing bond to a new rental instead of paying a second one.
For landlords and agents, there's no change. The security and value of the bond stay the same, and there's no financial risk.
What is a smart rental bond?
A smart rental bond is a simple way to transfer your bond from your current rental to your new one, using Rental Bonds Online. Until now, tenants usually had to pay a new bond before the old one was refunded. Now your existing bond moves across instead. It's optional, and the NSW Government says it can save renters up to $4,000 each time they move, with only a small fee of $25.
If the new bond is higher, you must also pay the difference. If it's lower, the leftover amount is held until any claim on your old bond is finalized, then refunded to you. For example, if your old bond is $2,000 and your new one is $2,400, you pay $400 plus the $25 fee, so $425 upfront.
Who is eligible for a smart rental bond?
You can use Smart Rental Bonds if you're an individual over 18 moving between two NSW rentals with the same tenants, and you're leaving your old home within 4 weeks of entering the new one. You'll need an existing bond linked to a Rental Bonds Online account, and you'll pay the $25 fee plus any extra bond money. Companies can't use it, and neither can tenants who owe money from a previous transfer.
There are a few other times you can't use it. For example, if a claim is already in progress on your old bond, if share house members are moving to different homes, if you have a RentStart bond loan with money still owing to Homes NSW, or if the bond is a retail bond. For the full list of requirements, check the Smart Rental Bonds page on the NSW Government website.
What does this mean for landlords and agents?
For landlords and agents, nothing changes. The security and value of the bond stay the same, so there's no financial risk. If a claim on the old bond is agreed, the NSW Government pays the landlord or agent directly and then recovers the money from the tenant. Bonds are still lodged and claimed the same way, and disputes still go through the NSW Civil and Administrative Tribunal (NCAT).
If you're an agent, there are a few practical points. Check whether a new tenant already has a Rental Bonds Online account before you submit a pending lodgement. Tenants don't have to tell you on their application how they'll pay their bond, and you won't be notified when a tenant transfers one. If you manage the old tenancy, a claim already in progress means the tenant can't transfer the bond. Keep lodging claims the usual way, but keep the timing in mind.
Need help with Smart Rental Bonds?
Our property lawyers at Law Team are ready to help. If you are a property agent, we can help you and your team understand how Smart Rental Bonds work. Contact us for advice on how you can support your tenants and landlords with confidence.
This article is general information only and doesn't constitute legal advice. If you'd like advice tailored to your business, get in touch with our team.
About the Author: Erin Vassallo
Erin Vassallo is the Principal Solicitor and founder of Law Team, a values-led law firm with a strong reputation across New South Wales and Queensland. With over two decades of experience in commercial, construction, and property development law, Erin is a trusted advisor to developers, landowners, and business owners navigating complex projects and legal risk.
Her hands-on experience includes joint ventures, structuring development deals, contract negotiation, risk mitigation, and project governance across residential, commercial, and mixed-use developments. Erin holds qualifications in law, political science, mediation, and disruptive strategy (Harvard Business School) and is the founder of Certified BCorp Law Team, committed to ethical business practices and social impact.
Frequently Asked Questions
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No. Tenants can still pay a new bond upfront.
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Yes, if the same tenants move together and all other requirements are met. If one tenant stays behind, the bond can't be transferred.
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Agreed claims are paid to the landlord by the NSW Government. The tenant then repays the government. Disputes still go through the usual process, including NCAT.
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No. They aren't notified when a tenant transfers a bond.
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Revenue NSW can start recovery action if an invoice isn't paid within 28 days. Tenants who owe money may also be blocked from using the scheme again.