Security Bond
A security bond is a payment made in advance by the tenant to cover any costs for which the tenant may be liable at the end of the tenancy, for example unpaid rent, outstanding water usage charges, or damage to property or chattels.
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You do not need to charge a security bond. If you do take a bond, there are restrictions on the amount of bond allowed. For most properties, the bond must not be more than four times the weekly rent. if the weekly rent is $1,200 or more per week, then you may charge a bond higher than four weeks rent.
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If more than one person has paid money as part of the bond, it is important the names of all parties appear on the lodgement form, to protect each person's share.
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If you have more than one rental property, you must have a separate bond for each property.
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If you permit the tenant to keep any pet capable of carrying parasites that can affect humans (such as cats, dogs, rats or birds) on the property, an additional amount of no more than $260 (regardless of the number of pets) can be charged as a pet bond to meet the cost of fumigation at the end of the tenancy. A pet bond cannot be taken for assistance dogs.
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Receiving and depositing the Security Bond
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If you receive a security bond from a tenant, you must immediately issue a receipt. The receipt must show the name of the person who paid, the amount paid, the date of payment and the address of the rental premises. All security bonds must be lodged with the Bond Administrator (a section of the Department of Commerce) as soon as practicable and in any event within 14 days of receiving it. If you do not pay the bond money to the Bond Administrator within 14 days of the receipt of the bond you will be in breach of the Act and can be prosecuted.
The Bond Administrator will send you and the tenant a record of the payment. Bonds can be lodged by email to bondsadmin@commerce.wa.gov.au by post or in person at one of the Department of Commerce’s offices. Alternatively, if you are eligible to use BondsOnline, bonds can be lodged electronically using eTransactions. The service is free and the interest on residential tenancy bond accounts goes towards the cost of administration, dispute resolution and tenancy education, such as this document.
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RentCollect does not offer it's clients the servicing of the security bond on behalf of you, the Landlord.
This service comes inclusive in the standard service of property management. If you wish to have your property managed in full by a licensed Real Estate, you may seek further information on our Services page.