On paper, the changes were sensible. The goal was to reduce delays, simplify disputes and minimise the need for court intervention.
But in practice, many property investors are already finding the new system comes with unintended consequences and increased risk.
What is WA’s new bond disposal system
The new system forms part of the WA government's changes to the Residential Tenancies Act (RTA), which are the state’s biggest rental reforms in decades.
Under the previous bond system, rental bonds were typically released only when both the landlord and tenant agreed on how the funds should be distributed.
If an agreement couldn’t be reached, the matter would proceed to the Magistrates Court, often a slow and costly process.
The new bond reforms were introduced to streamline the process. Here’s how it works:
- Tenants, landlords or property managers can initiate a bond release request independently.
- All parties are notified once a request is submitted.
- If there’s agreement, the bond is released quickly.
- If there’s a dispute, it is referred to the Commissioner for Consumer Protection, rather than going to court.
Keeping bond disputes out of the courts should save time and money for everyone involved. But as with many legislative reforms, the devil is in the details, and several practical problems are already emerging for property investors.
What problems are emerging for landlords
One of the most significant challenges for property investors is the tight timeframe to respond.
Under the new system, tenants can submit a bond release request as soon as they hand back the keys.
From that point, self-managing landlords or property managers have just 14 days to respond.
If no response is received within 14 days, the matter is referred to the Commissioner for Consumer Protection for determination.
Self-managing landlords are notified of bond release requests via mail, which can take 3-5 business days to arrive, even longer if they live remote. Property managers are notified via a digital portal if the bond was initially lodged this way.
Given any claim needs to be made within 14 days, this leaves only a very narrow window.
Additional onus at the end of a lease
To make a legitimate claim against a bond, a self-managing landlord or property manager needs to:
- Complete a thorough final routine inspection of the property
- Identify any damage, cleaning issues, or outstanding charges
- Contact appropriate trades for quotes or bookings
- Have repairs or cleaning completed
- Receive and pay the invoice
- Compile documentation to support the claim
In reality, less than 14 days is a tight turnaround to complete all these tasks, particularly when damage or repairs are required and trades are busy.
What evidence do you need to make a claim
Another key shift under the new system is the importance of evidence.
To successfully claim against the bond, property investors (or their property managers) need to provide clear documentation. The strongest form of evidence is typically a paid invoice or receipt for completed works.
If this isn’t available, other supporting documents such as quotes and booking confirmations may be considered, but they carry less weight.
This means self-managing landlords and property managers need to act quickly and proactively to ensure any claims are properly supported.
How property investors can stay ahead
Preparation before a tenancy ends is now more critical than it has ever been.
At Rent Choice, we’ve already adapted our processes to reduce risk under the new system.
This includes conducting pre-final routine inspections before the tenancy ends. This allows us to identify potential issues early, not after the keys are returned.
Where maintenance or damage is identified, it’s important to engage trades quickly so works can be completed (and invoices issued) within the required timeframe.
With only 14 days to act, having systems and processes in place is essential to ensure no deadlines are missed.
Understanding WA’s new bond disposal system
The new bond disposal process represents a significant shift in how bonds are handled in Western Australia.
While the process is more streamlined, it also requires greater vigilance, faster action, and stronger documentation.
For self-managed landlords, the key takeaway is simple: The end of a tenancy is no longer a process you can afford to take your time with.
Our team at Rent Choice has been trained across all changes to the new bond disposal system and is already implementing pre-final inspection processes to protect our clients. If you have questions about how these reforms affect your property, contact us today.
Image by Vitaly Gariev on Unsplash
