Rent bidding, applications and option fees

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There are rules to how a property is advertised and how applications are managed.

Tenants should visit as many properties as they can to see which one meets their needs. Check if the property has the features you want for example fencing, yard space, air conditioning or off-street parking. Check if the location is close by to important services like schools, shops, medical centres and transport.

Advertising the home for rent

Landlords must:

  • advertise properties at a set amount. For example: ‘$425 per week’, not ‘offers between $400 and $500 per week’.
  • not encourage a potential tenant to offer to pay more than the advertised rent amount.
  • not pressure a tenant into paying more rent than the amount advertised.

Rent bidding

Rent bidding is banned in Western Australia. This means a landlord cannot encourage or pressure a tenant to offer more than the rental amount.

A landlord cannot say phrases like:

  • “someone else has made an offer, would you like to match it?”;
  • “there are lots of people interested in this property, you can secure it if you offer more rent”; and
  • “you have not been working full time for very long, you might want to strengthen your application by offering more rent.”

A tenant can offer to pay more rent if they want to. A landlord can not suggest this as an option.

If a tenant asks if they should offer a higher rent, the landlord must not encourage a higher rent. The landlord should say something like “I am not able to comment on that. You need to make your own decision about the rent you can pay”.

If a landlord or agent asks or encourages a tenant to offer more money, report them to us on 1300 30 40 54.

Applying to rent a home

Landlords can ask a new tenant to complete an application form. The landlord can use the applications to assess which tenant they would like in the home.

A landlord can also check a tenancy database. The landlord must let the tenant know, in writing, if use a tenancy database. The landlord must give the tenant a copy of any information they find.

A landlord must treat rental applicants equally and fairly.  The Equal Opportunity Commission has further information about anti-discrimination.

Option fee

A landlord can charge an option fee to tenants who apply for the home. The fee is capped at $50 or $100 (depending on the rent and location of the property as below). It must be returned to the tenant at the end of the application process.

Option fee table based on location
Weekly Rent of the Property Location of the Property
  Above 26th parallel (Shark Bay)  Below 26th parallel (Shark Bay)
$0 to $500 $50 maximum $50 maximum
More than $500 and less than $1200 $100 maximum $100 maximum
$1200 or more $100 maximum $1200 maximum

* Note: The town of Denham in Shark Bay is just north of the 26th parallel.  It is the extension of the boundary line between Norther Territory and South Australia 

Map indicating the 26th Parallel (South)
Map indicating the 26th Parallel (South), by tvanderloo
Map indicating the 26th Parallel (South),

Paying back the option fee

If the application is successful, the option fee paid must be deducted from the first rent payment or paid back to the tenant.

If the application is refused, the money must be returned within seven days.

Preparing to rent checklists

Whether you are a landlord or tenant make sure you do your homework before signing a rental agreement.  

Tenants checklist

Before you apply or sign an agreement:

  • Does it suit your budget? Make sure you include paying for other bills 
  • Does it have the minimum standard security
  • Does it have all the features and services you need?
  • Is it suitably maintained and secure?
  • What type of agreement would suit you (periodic or fixed-term)?
  • Check your upfront payments
    • rent in advance (two weeks)
    • a security bond (equivalent to a maximum of four weeks’ rent)
    • a pet bond if applicable
    • setting up phone, internet, power, gas and water and
    • other costs associated with changing house, such as moving furniture etc.

Landlords checklist

Make sure you know your rights and responsibilities.

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