Rent in advance

Property managers have legal obligations when a tenant or prospective tenant offers to pay more than two weeks’ rent in advance.

A lessor may only ask a tenant for up to two weeks’ rent in advance; a security bond equivalent to four weeks’ rent; and if applicable, a pet bond of no more than $260.

Once a tenancy has commenced, a lessor cannot ask the tenant for rent until the period covered by the previous payment is finished. Asking for rent before the previous period has ended could be a breach of the Residential Tenancies Act 1987 (WA) and result in a fine of up to $5,000.

A tenant may offer to pay rent in advance to secure a rental property or suit their personal financial circumstances. In this case, a lessor should ask the tenant to put the offer in writing.

This document goes on to address:

• Definitions under the Act
• Instructions for property managers and lessors

Tenants deserve peace of mind knowing their money is being handled by lessors and property managers in accordance with the law.

References

Residential Tenancies Act 1987 (WA) (RT Act)

Real Estate and Business Agents Act 1978 (WA) (REBA Act)