An Australian renter was left stunned after she was told she would have to pay more than twice the amount of an average security deposit to secure a property.
Erin and her partner, who live in Queensland, found a house they both liked that would cost them about $800 a week to live in.
The couple thought they only had to post a $3,200 deposit.
Tenants across the country are generally required to pay a deposit equivalent to approximately four weeks’ rent.
Erin (pictured) said she was shocked after being confronted with the huge sum after finding a rental property they liked in Queensland with her partner
Erin was stunned to find out that she and her partner would have to pay more than double the amount when they applied for the home.
She took to TikTok to express her shock after being confronted with the huge amount.
“When we went to file, there was a fee of $6,500,” Erin said.
“I didn’t know that moving into a rental house costs $700 or more [in rent]can charge the owner in advance how much he wants to charge.’
According to the Residential Tenancies Authority, landlords can negotiate the price of the bond if the weekly rent exceeds $700.
The Residential and Tenancies Accommodation Act (2008), which governs rental and tenancy law in the Sunshine State, does not specify the maximum amount a tenant can be charged.
The property listing had indicated the couple would have to pay $3,200 in security deposits, but the amount exceeded this figure as the rent is worth more than $700 per week (photo stock image)
“It makes you wonder why we have a rental crisis, woah!” Erin said.
Hundreds of social media users were shocked and shared similar experiences.
“We had a $10,000 security deposit at the request of a landlord. Our property cost $850 a week, it was insane,” one person wrote.
“If this happened they would need $7,800 for a security deposit and then two weeks rent,” another tenant wrote.
Others expressed disbelief at the enormous amount of bond money renters have to pay to afford a rental property.
“These prices are insane,” one person wrote.
“So wrong it should be illegal,” another person added.
Tenants who uploaded their comments to social media shared similar experiences they encountered when paying deposits for a rental property (pictured a rental property for rent in Melbourne)
Some suggested the couple should find a cheaper rental property until they could afford a down payment.
‘Maybe [save enough for a deposit] if you move somewhere for 450 a week for a few years… you can’t live in the moment and prepare [for] the future it is a sad reality,” one person wrote.
Real Estate Institute of Queensland CEO Antonia Mercorella said these bond rules came into place a long time ago when the property market was different.
“The $700 threshold was established many years ago at a time when weekly rental values were vastly different from the values we see in the market today,” she shared. Yahoo.
Queensland passed new rental laws last month to limit the amount of security deposits to no more than four weeks’ rent.
Tenants can request a refund of a security deposit if it exceeds the maximum amount before the new laws come into effect.
The new laws, which will be implemented in two phases, have yet to be enforced and an official date has yet to be announced.