Section 112 Bond Retention Notice NT — How to Prepare It

If a tenant vacates and you believe you are owed money for damage, unpaid rent, or cleaning, use the Section 112(5) notice to notify them that you intend to retain the relevant part of the bond. Section 113(2) provides a limited exception for specified claims if you miss the notice deadline.

The Seven-Day Deadline

Section 112(2) of the Residential Tenancies Act 1999 requires you to reimburse the tenant within seven business days for the amount you are not entitled to retain. If you intend to retain or continue holding part of the bond, Section 112(5) requires you to give notice and attach the required documents within that same window. Section 113(2) lets NTCAT permit retention after a missed notice only for claims under Section 112(3)(d)–(g), if the circumstances justify it.

What the Notice Must Contain

Use NT Consumer Affairs Form RT08. Section 112(5) requires written notice of the amount and purpose, a statutory declaration and supporting documents, and return of any amount not retained or held within the seven-business-day window:

1. Itemised deductions. Each claimed amount must be broken out separately — not lumped into a single figure. List the specific head of loss (rent arrears, damage to a named item, cleaning of a specific area, lost keys, unpaid utility charges) and the dollar amount for each.

2. Supporting documentation. Attach copies of receipts, invoices, or other documents that support the amounts claimed. For damage or cleaning claims, the documents must specify the amount required to make good the damage or clean the premises.

3. A statutory declaration. Attach a statutory declaration attesting that retaining the amount is required for the purpose in the notice and that the attached documents relate to the claims. This declaration carries legal consequences for false statements.

Any amount not being retained or held must be returned within the seven-business-day deadline. You cannot hold the entire bond while disputing a fraction of it.

Preparing the Notice Before the Tenant Leaves

Seven business days sounds reasonable until you try to get trades quotes, compare condition reports, and draft a statutory declaration from a standing start. The practical approach is to prepare before the tenant vacates:

• Line up trades. Have your cleaner, handyman, and locksmith ready to inspect and quote within 24–48 hours of move-out.
• Pull the condition reports. You will compare the exit inspection against the entry report. For damage, cleaning, or lost-property claims against the bond, Section 112(4) requires a condition report accepted under Part 5 and an outgoing report given to the tenant under Section 110.
• Photograph everything. Date-stamped photos of the property at move-out, compared to your entry photos, give NTCAT the visual evidence that supports your written claims.

What Happens After You Serve the Notice

If the tenant accepts the deductions, you retain the claimed portion and refund the balance. If the tenant disputes any deduction, either party can apply to NTCAT for an order.

At the Tribunal, the burden is on you — the landlord — to prove each deduction is lawful, properly evidenced, and within the statutory categories. The amount claimed for damage must be what is necessary to make good the damage. For damage, cleaning, or lost-property claims against the bond, Section 112(4) requires a condition report accepted under Part 5 and an outgoing report given to the tenant under Section 110.

The Full Retention Workflow

The free Northern Territory Rental Bond Checklist covers the seven-day clock and the deduction categories. The complete guide includes the Section 112 retention notice preparation log, the evidence assembly sequence, and a depreciation estimate for assessing damage claims.

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