What can a landlord deduct from my bond in NSW?
Your landlord can only deduct from your bond for specific costs allowed under the Residential Tenancies Act 2010 — not whatever they feel like charging.
Bond disputes are one of the most stressful parts of moving out. You’ve handed over hundreds or thousands of dollars, and now you want it back. Knowing exactly what the law allows — and what it doesn’t — puts you in a much stronger position. This article covers the legal list, the things landlords often try to claim but can’t, and how to protect yourself before you leave.
What the law actually says
Section 166 of the Residential Tenancies Act 2010 is the key provision. It lists specific categories a landlord can claim — the reasonable cost of repairs for tenant-caused damage, unpaid rent and other charges, reasonable cleaning costs, and the reasonable cost of replacing locks or security devices the tenant altered, removed or added without consent. The Act says these are the main categories, but doesn’t fully close the list, so a landlord could in principle claim other amounts — each claim must still be justified, and disputes go to NCAT.
Section 160 of the same Act adds an important limit. It prohibits a landlord from requiring anything other than a rental bond as security for the tenancy. So they can’t top up a bond claim with some other payment they’ve invented.
Section 172 is also worth knowing. It states that the Secretary — the government agency that holds bonds under the Rental Bonds scheme — will not pay out more than the amount of bond actually held. Even if a landlord claims more, they can only receive what’s there.
What CAN be deducted from your bond
Under section 166 of the Residential Tenancies Act 2010, a landlord can claim for:
Unpaid rent
If you owe rent when you move out, that amount can come out of your bond. This is the most straightforward deduction.
Damage beyond fair wear and tear
Fair wear and tear means the normal deterioration that happens from ordinary, everyday use of a property over time. A carpet wearing thin after years of normal use is fair wear and tear. A carpet stained or torn because of something you did is damage — and that’s claimable.
The landlord can only claim repair costs for damage they can show wasn’t caused by ordinary use. They cannot claim for things that were already worn out before you moved in.
Cleaning costs
If you didn’t leave the property in a reasonably clean condition, the landlord can claim the cost of having it cleaned. The trigger is important here: it’s not that any cleaning was done after you left. It’s that the property wasn’t left reasonably clean, which is a standard applied at the end of the tenancy.
Locks or security devices you altered, removed or added without consent
If you altered, removed or added a lock or other security device during your tenancy without the landlord’s consent, the reasonable cost of replacing it can be claimed under s166.
Other unpaid charges
Any rent or other charges owing and payable under the agreement or the Act can also be claimed under s166 — for example, unpaid water usage charges that the landlord had properly billed you for during the tenancy.
What CANNOT be deducted from your bond
Just as important as the list of what’s allowed is what isn’t.
Normal wear and tear
As noted above, fair wear and tear is not your financial responsibility. A landlord who tries to charge you for faded paint, minor scuffs on walls from furniture, or a worn carpet in a high-traffic area is claiming for something the law doesn’t allow.
Amounts over the bond held
Under section 172 of the Residential Tenancies Act 2010, a landlord cannot receive more from the bond than was actually lodged. If they claim $3,000 but only $2,000 is held, they get $2,000 at most through the bond process. They would need to pursue any extra amount separately, through the NSW Civil and Administrative Tribunal.
Other types of security
Section 160 of the Residential Tenancies Act 2010 is clear: a landlord cannot require you to provide anything other than a rental bond as security. This means they can’t demand extra deposits or side payments — and they can’t use a bond claim to recover costs that aren’t legally connected to the tenancy.
Pre-existing damage
If damage existed before you moved in and was noted on the condition report, or can otherwise be shown not to be your responsibility, the landlord cannot charge you for it.
How to protect yourself
The single most important thing you can do is complete the ingoing condition report carefully on the day you move in.
The condition report documents the state of the property before you take possession. If you disagree with anything the landlord or agent has written, note it in writing and take photographs on the same day. Keep a copy.
When you move out, photograph every room, every wall, every fixture — date-stamped if your phone allows it. Do this before you hand back the keys. A landlord claiming for damage that already existed before you arrived will have a much harder time if you have dated photos showing the property’s condition when you arrived and when you left.
If the landlord makes a bond claim you believe is incorrect, you can apply to the NSW Civil and Administrative Tribunal for an order about how the bond should be paid out. The Tribunal can examine evidence from both sides and decide what’s fair.
The process for actually getting your bond returned, including what happens when there’s a dispute, is covered in our article on how to get your rental bond back in NSW. If you’re also wondering about timing, see how long it takes to get a rental bond back in NSW.
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A note on water charges
Water usage is a separate topic from bond deductions. Whether a landlord can charge you for water usage during the tenancy is governed by section 39 of the Residential Tenancies Act 2010 (and section 40 for landlord-side utility charges). Section 39 sets conditions around separate metering and water efficiency measures. If those conditions aren’t met, the landlord can’t charge you for water usage in the first place — so there’s nothing to claim from the bond at the end.
If water usage was properly billed during the tenancy and you didn’t pay it, that amount can be claimed from the bond under s166 as a charge owing (see the “Other unpaid charges” point above).
Bond disputes are decided on evidence. The condition report and your own photographs are your strongest tools.