NSW Rental Bond Maximum: The Four-Week Cap and What Landlords Can't Charge

The Cap: Four Weeks' Rent, Full Stop

Under Section 159(1) of the Residential Tenancies Act 2010, a landlord in NSW cannot require or receive a rental bond exceeding four weeks' rent. The calculation uses the weekly rent stated in the tenancy agreement at the time the agreement is entered into.

For a property rented at $600 per week, the maximum bond is $2,400. For a furnished executive rental at $1,400 per week, the maximum bond is $5,600. The maths is always the same: weekly rent multiplied by four.

No Exceptions for Furnished Properties or High Rents

Unlike some other Australian states, NSW has no high-rent threshold that unlocks a larger bond. It doesn't matter if the property is a fully furnished inner-city apartment with $30,000 worth of furniture — the four-week cap still applies. A landlord who collects $5,000 on a $1,000-per-week apartment because of "premium furnishings" has committed a statutory offence.

Pet Bonds Are Illegal

NSW is unambiguous on this: a landlord cannot require a pet bond, pet deposit, or increased rent as security for keeping an animal. Section 160 of the Act prohibits any additional security beyond the standard four-week bond.

The general pet-consent rules started on 19 May 2025. From 2 October 2026, a tenant who applies within seven days after entering the tenancy agreement can keep the pet at the property while waiting for the landlord's response (due within 21 days). The landlord can refuse only on statutory grounds: an unreasonable number of animals; unsuitable fencing or insufficient open space; inability to keep the animal humanely; a high probability of property damage exceeding the bond; a conflict with other laws; the landlord living in the same home; or the tenant refusing reasonable conditions. Financial security for the pet is not one of those grounds.

Under Section 19(2), a professional carpet-cleaning condition is allowed only if it is stated in the response to the pet application, the pet lives indoors, and cleaning is appropriate for that animal and property. Without an applicable pet-related condition, a landlord may still claim reasonable cleaning costs if the carpet was left less clean than it was at the start of the tenancy, allowing for fair wear and tear.

What Other Upfront Charges Are Allowed

The four-week bond isn't the only upfront payment a landlord can collect, but the list is short:

• Rent in advance: maximum two weeks' rent at the start of the tenancy (Section 33)
• Holding fee: maximum one week's rent, collected only after approving the application, applied to rent if the lease proceeds (Section 24)

Since 31 October 2024, background check fees and lease preparation fees are expressly prohibited. A landlord cannot pass these costs to the tenant in any form — no "administration fees," no "document processing charges," no creative relabelling.

The Penalty for Exceeding the Cap

Requiring or receiving a bond over four weeks' rent is an offence under Section 159(1), carrying a maximum court penalty of 20 penalty units — $2,200 at the current NSW rate of $110 per unit. The same penalty applies to taking a prohibited security like a pet bond (Section 160) or requiring a bond top-up during the tenancy (Section 161).

NSW Fair Trading can issue penalty notices directly. A landlord who collects an extra two weeks' rent "just in case" and calls it something else is taking the same legal risk as one who openly exceeds the cap.

Multiple Tenants Don't Change the Maths

In a share house with three co-tenants, the total bond across all tenants combined cannot exceed four weeks' rent. Each tenant's share is whatever they agree between themselves (and since 21 September 2026, the lease must record each co-tenant's individual contribution), but the landlord's total take is still capped at four weeks of the agreed weekly rent.

Our NSW Rental Bond guide covers the full bond process from the four-week cap through lodgement, condition reports, mid-tenancy changes, and end-of-tenancy claims.

See more New South Wales guides →