A rental security bond is a payment made by the tenant(s) at the start of a tenancy.

Bonds must be lodged with Bonds Administration within 14 days of being paid. Bonds Administration holds the bond money until the end of the tenancy.

A landlord does not have to take a bond, but they can if they want to. If they do take a bond, then these rules apply.

Key terms:

• Tenant – the person renting the home.
• Landlord – the owner, manager or agent renting out the home.

What a bond can be used for

The landlord can make a claim to use the tenant’s bond to cover costs when the tenant moves. This may include covering costs for repair of damage caused by the tenant or outstanding payments. Property condition reports (PCRs) are important evidence for bond claims. Landlords must give two copies of the PCR to tenants before they move in.

The bond can only be released when Bonds Administration has received:

• written agreement from all the tenant(s) and landlord(s) on a bond disposal form
• a court order.

Bond amounts

Residential tenancy bond amount

The bond must not be more than four times the weekly rent unless the weekly rent is more than $1200 per week. 

Residential parks long-stay tenancy bond amount

The security bond must not be more than four times the weekly rent. 

Pet bonds

Tenants may have to pay a pet bond of up to $260 if they are allowed to keep a pet. More information is available on Renting with pets page.

Where the bond is kept

Bond money must be lodged with Bonds Administration (Consumer Protection).

Bonds Administration will send a record of the bond payment directly to everyone named on the bond when the payment has been received.

Bonds for shared tenancies

How bonds are managed in shared tenancies depends on the type of rental agreement the tenants have.

Co-tenancy

Multiple tenants on one rental agreement

All names of the tenants on the rental agreement should be on the bond lodgement form. This protects the interest of each tenant for their share of the bond. The tenant(s) can claim their share when they leave the home.

All co-tenants contribute to one bond. If co-tenants move in or out of the property, the bond will need to be changed using the bond variation form. Tenants should settle any bond amounts privately before signing the variation form. Remaining co-tenants may need to ‘top up’ the bond.

Subletting

If the sub-tenants pay a bond, the head-tenant must lodge it with Bonds Administration. They must list the sub‑tenant as the tenant, and themselves as the landlord.

Multiple rental agreements for one home

Where tenants have their own rental agreement, each bond must be lodged separately.

Bond assistance 

A tenant can apply to the Department of Communities to pay the bond on their behalf.

The bond must be lodged with the tenant’s name and dealt with like any other bond.

Bond Receipts and records

Landlords must issue a bond receipt and keep records of bonds.

All receipts must be issued immediately after receiving payment. Hand-written receipts must include the name and signature of the person who received the money.

Bonds paid to private landlords

The receipt must include the:

• date the bond was received
• name(s) of the tenant(s) paying the bond
• amount paid
• amount of the pet bond (if one is paid)
• address of the rental premises.

Bonds paid to real estate agents

The receipt must include:

• the heading ‘Trust Account Receipt’
• the business name of the agency
• the name of the agent in charge of the agency as recorded in the real estate agent’s register
• the receipt number
• the date the money was received
• the name(s) of the tenant(s) paying the bond
• the amount paid
• a brief description of the purpose of the payment.

Bond replacement products

Bond replacement products are schemes advertised as cheaper alternatives to rental bonds. They are illegal in Western Australia.

Bond replacements can work in different ways. Generally, a tenant pays a regular fee to a company. The company then guarantees an agreed amount to the cover the bond.

Unlike a traditional bond, bond replacement products:

• are not refundable
• may have renewal fees which can increase over time and end up costing more than the original bond

If the amount guaranteed does not cover all the landlord’s claims, the:

• landlord can claim more money directly from the tenant.
• company might pay out the landlord and then take legal action against the tenant for any extra amount paid.

Report anyone trying to sell you these products to Consumer Protection on 1300 30 40 54.

More information

The following pages provide more information about how to lodge, vary and release a bond. 

• Bonds forms
• Lodging a bond
• Changing a bond (bond variation)
• Releasing or claiming a bond (bond disposal)