Understanding Bonds in Rental Agreements: What You Need to Know

Rental Bonds in WA: What They Cover and How Much You Can Pay

Moving into a rental property involves several upfront costs. One of these is the security bond. Understanding how rental bonds work in Western Australia helps tenants and landlords avoid confusion.

What Is a Security Bond?

A security bond is money a tenant pays at the start of a tenancy. It provides security against certain costs the tenant may owe when they leave.

For example, a landlord may claim unpaid rent, outstanding water usage charges or costs to repair tenant damage. The bond remains the tenant’s money unless a valid claim entitles the landlord to a payment.

A bond is separate from rent in advance. Tenants should continue paying rent throughout their tenancy.

How Much Security Bond Can a Landlord Charge?

For most WA residential tenancies, landlords can charge a security bond of up to four weeks’ rent.

For example, a weekly rent of $650 allows a maximum security bond of $2,600, excluding any permitted pet bond.

The four-week limit does not apply when the weekly rent exceeds $1,200. For long-stay residential park tenancies, the security bond cannot exceed four weeks’ rent.

How Much Is a Pet Bond?

For residential tenancies, landlords can charge a pet bond of up to $350 in total, regardless of the number of pets.

The pet bond can cover fumigation or damage that a pet causes. Landlords cannot charge a pet bond for an assistance animal.

Different pet bond rules apply to residential parks, so check the requirements for your tenancy type.

Who Holds the Bond?

The landlord or property manager must lodge the bond with Bonds Administration as soon as possible. They must complete lodgement within 14 days of receiving payment.

The lodgement must identify any pet bond amount. Bonds Administration then sends a payment record directly to everyone listed on the bond.

Should Tenants Receive a Receipt?

Yes. The landlord or agent must issue a receipt immediately after receiving the bond.

A private landlord’s receipt must include:

• The payment date.

• The names of the tenants paying.

• The amount paid.

• Any pet bond amount.

• The rental property address.

Real estate agents must issue a trust account receipt that meets additional requirements. Keep your receipt and bond payment record for future reference.

What Happens in a Shared Tenancy?

For tenants sharing one tenancy agreement, the bond lodgement must name every tenant. This applies regardless of who contributes the money.

Listing everyone helps protect each tenant’s interest in the bond. Check the details carefully and notify the property manager if anything needs correcting.

Can Tenants Get Help Paying the Bond?

Eligible tenants can apply for an interest-free bond assistance loan through the Department of Housing and Works.

The scheme can help with the bond and up to two weeks’ rent in advance. Eligibility and loan limits depend on the applicant’s circumstances. Tenants must repay the loan.

Before signing a lease, check the bond amount and understand your payment obligations. Our guide to understanding rental agreements explains other key details to review.