Entry Payment
Understanding Entry Payments: What You Need to Pay Before Moving In
When preparing to move into a rental property, you’ll need to make several upfront payments. These are often confused with bond payments, so let’s break it down below!
What Are Entry Payments?
Entry payments are rent payments made in advance before your move-in date. These are separate from your bond, which is a security deposit held for the duration of your lease and does not count toward your rent.
Why Are Entry Payments Required?
Rental payments are typically made in advance, based on your payment cycle. For example:
- If you’re on a fortnightly payment cycle, you’ll need to pay 2 weeks of rent in advance.
- Since your holding deposit (equivalent to 1 week’s rent) is converted into your rental payments, you’ll need to make an additional 1 week’s payment to cover the advance rent requirement.
What Does the Total Upfront Payment Include?
Before moving in, your total payment will typically include:
- 4 Weeks Bond: A refundable security deposit held for the duration of your lease.
- 1 Week Holding Deposit: Paid earlier to secure the property, which is then converted into your rental payments.
- 1 Week Rent: An additional payment to cover the advance rent requirement.
When combined, your holding deposit and the additional 1 week’s rent will cover the 2 weeks of rent in advance required for your payment cycle.
Example Breakdown:
For a property with a weekly rent of $500:
- 4 Weeks Bond: $2,000 (refundable at the end of your lease).
- 1 Week Holding Deposit: $500 (converted into your rent).
- Entry Payment: $500 (combined with deposit to make fortnight payment in advance )
- Total payable: $3000
Have Questions?
If you’re unsure about entry payments or need further clarification, feel free to:
- Email us at support@sydneyrealtygroup.com.au.
- Chat with us using the chatbox on our website, and we’ll get back to you right away.