South Australian Consolidated Acts

LANDLORD AND TENANT ACT 1936 - SECT 59

59—Regulation of security bonds

        (1)         Subject to subsection (2), a person shall not in relation to a commercial tenancy agreement—

            (a)         require more than one security bond; or

            (b)         require the payment of, or receive, under a security bond, an amount exceeding—

                  (i)         the rent payable for one month's occupancy of the premises to which the agreement relates; or

                  (ii)         one-twelfth of the rent for one year's occupancy of the premises to which the agreement relates,

whichever is the lesser.

Penalty: Division 9 fine.

        (2)         Subsection (1) does not apply to a security bond under which a tenant agrees to pay to a landlord an amount as security for the payment of government charges that are payable by the tenant under a commercial tenancy agreement.