Improving bond lodgements for tenants and property managers

As seen in The West Real Estate

Providing security and transparency for tenants in bond transactions is a goal REIWA is working to achieve.

When you move into a new rental there are many costs and stresses, and one of them is paying a rental bond and transferring the money for it. 

Bonds are payable by the tenant to act as a safeguard fund for the property owner in case the home is damaged during the tenancy, rent or utility bills are left unpaid, or the house is left unfit for a new tenant and needs cleaning and other works.

A bond is usually about a month’s rent, a substantial sum, and not one you wish to be subject to delays or cyber security threats.

The process of paying a bond is largely a manual one involving the tenant, the property manager or landlord and the ultimate receiver and holder of the bond, the Bond Administrator within the Department of Local Government, Industry Regulation and Safety.

Under the present system, property managers are responsible for collecting, receipting, reconciling and lodging tenant bonds through BondsOnline. This process involves significant manual handling, compliance oversight and exposure to cyber risk.

The property manager has up to 14 days to lodge the bond received from the new tenant and our REIWA property managers spend considerable work hours acting as an intermediary in the transaction.

We believe it's time for a new solution that would allow tenants in Western Australia to directly pay their bond to the Bond Administrator.

An automated notification or receipt would then be issued to both the tenant and the property manger, saving up to two weeks processing time, and ensuring the visibility and accuracy of the transaction.

This simple reform strongly supports improving security, efficiency and consumer confidence in the rental system.

Direct bond payments would enhance tenant certainty in the transaction and significantly reduce administration time and red tape for property managers and landlords.

REIWA believes it a win-win for property managers, tenants and the Department, and we will be working with Government to encourage adoption of the change. 

Suzanne Brown
REIWA President