The tenant is generally required to pay a security bond (also known as security deposit or rental bond). This is paid by the tenant before moving into the house or flat. The security bond is calculated by reference to the weekly rent; where the rent does not exceed $250 per week, the maximum bond is four weeks rent. However, where the weekly rent is more than $250, the maximum bond is the equivalent of six weeks rent. A landlord who breaches these requirements may be fined up to $1000 [Residential Tenancies Act 1995 s.61].

All security bonds paid in relation to premises in South Australia must be lodged with, and are held by, the Commissioner for Consumer Affairs as security against the tenant being in arrears of rent or if damage is done to the premises by the tenant or if the premises are not left reasonably clean or for other losses which are the tenant's responsibility. It is the responsibility of the landlord to lodge the security bond with the Commissioner within seven days (registered agents have up to 30 days). Once a bond has been lodged a landlord can ask a tenant to increase this bond by giving sixty days notice, but only at two yearly intervals and it cannot be increased beyond the ceiling referred to above. Failing to lodge a bond carries a maximum fine of $1000 [Residential Tenancies Act 1995 s.61(2), Reg 10].

When bond money is paid the landlord or real estate agent should always be asked to give a receipt. The tenant must also sign a form which the landlord or real estate agent must send with the bond money to the Commissioner. After the Commissioner has received the money and the properly signed form, a bond number and receipt are sent to the tenant. If this number is not received within a reasonable time it is possible that the bond money has not been lodged and the Office of Consumer and Business Affairs, Tenancies Branch should be notified immediately.

For the return of the security bond, see: ending a tenancy.