29Security deposits

29 Security deposits

(1)  A retail lease is to specify any amount that is to be paid by a tenant to the landlord as a security deposit for the performance of the tenant’s obligations under the lease.

(2)  A security deposit must be held in trust by the landlord on behalf of the tenant.

(3)  A landlord must not –

(a) require more than one security deposit for the same retail lease; and

(b) unreasonably refuse to accept a guarantee from an authorised deposit-taking institution in satisfaction of any requirement to provide a security deposit for the performance of the tenant’s obligations under a retail lease.

Penalty:  In the case of –

(a) a body corporate, a fine not exceeding 50 penalty units; and

(b) an individual, a fine not exceeding 25 penalty units.

(4)  A landlord that has received a security deposit from a tenant –

(a) must account to the tenant for the interest earned on the security deposit; and

(b) is entitled to keep the interest earned on the security deposit and deal with the interest as money paid by the tenant to the landlord that does not form part of the security deposit; and

(c) must advise the tenant in writing of –

(i) the terms and conditions on which the security deposit is held; and

(ii) the grounds on which the landlord may refuse to refund all or part of the security deposit; and

(d) is not entitled to keep a guarantee from an authorised deposit-taking institution, provided to the landlord in satisfaction of any requirement to provide a security deposit for the performance of the tenant’s obligations under the retail lease, for more than 2 months after a tenant completes the performance of his or her obligations under the retail lease for which the guarantee was provided as security.

(5)  This section does not affect any lawful entitlement of a landlord to appropriate security deposit payments.