A Residential Bond is a security deposit paid by the resident at the beginning of their tenancy, accounting for an amount worth four weeks of rent. Bonds are lodged with a state government statutory authority such as the Residential Tenancies Authority (RTA). The bond acts as a financial guarantee for the property manager or owner of the apartment/ room against any unpaid rent, damages or any other costs not paid during the tenancy.

The residential bond cannot be used for rent unless authorized by the property manager. At the end of the tenancy, the bond will be refunded to the resident. In circumstances where there are outstanding repairs for damage to the apartment or unpaid monies on the rental account, deductions will be made against the secured amount to cover these expenses.