We’ve all navigated the complexities of bond disputes, and with the recent rent reforms now in full swing, the process has changed. It’s a tricky situation to manage, but here are some practical takeaways to help us all stay ahead of the game.
Why “Evidence is King” Now
The new process moves away from the Magistrates Court as the default for bond disputes for residential tenancies, shifting toward a Commissioner-led system. This new system allows tenants to initiate a bond release application themselves. This introduces a tight 14-day window for us to respond, agree, or lodge a dispute once an application is made. If all parties can’t reach an agreement or if there is no response within that window, the matter is automatically referred for a Commissioner Determination.
We must clearly explain our claims under specific categories if we are making a claim against the bond.
Documents all parties are required to present:
Evidence we should provide to support the Landlord’s claim are:
- Lease agreement
- Ingoing and outgoing property condition reports
- Photos of damage
- Invoices from a business with an Australian Business Number
- Receipts for products purchased to undertake the repairs
- Receipt for payment of insurance excess
- Rental ledger and payment records
Evidence the tenant could provide to dispute the claim would include:
- Dated photos to show the claimed damage was existing at the start of the tenancy
- Ingoing property condition report, with tenant’s mark-up, noting existing condition of the property
- Email correspondence with the landlord about the claim
- Landlord’s written agreement that an approved modification to the property didn’t need to be removed, or the property restored, at the end of the tenancy
- Payment records for rent and utilities
- Any other evidence showing why they are not responsible for the claim
Key Documentation to Protect Your Position:
• The Power of the PCR: We know an Ingoing Property Condition Report (PCR) and an Outgoing Property Condition Report (final bond inspection) are the foundation of every claim. As always, these documents must be solid, and the same level of detail is just as vital for your exit/outgoing condition reports.
• Routine Inspections are a Lifeline: Routine inspections give you a picture of what the property requires and provide both you and the tenant an opportunity to address issues early.
• The “Pre-Final” Strategy: Conducting inspections a few weeks before the lease ends is a game-changer. It gives tenants a chance to address issues and gives us the lead time needed to get quotes and line up trades before the final inspection. (Of course, keep in mind that the works required are always dependent on the final condition at the time of the handover). This proactive approach helps meet the response deadlines.
Note: If you find yourself in a bind, ensure you are aware of the communication requirements under the Act; always keep your records of attempted contact current.
Can you go directly to the Magistrates Court?
In the updated system, the Commissioner determination process is the standard pathway, unless the claim is more than the bond. You generally cannot bypass this process to go straight to the Magistrates Court.
However, there is a specific exception where the Commissioner is legally unable to decide an application. This occurs if all persons listed on the bond are individuals (not companies/organisations) and at least one person listed on the bond was living in another Australian state at the time the application was referred. In this specific case, the matter falls outside the Commissioner’s power and must be resolved through the court system.
Additionally, if the Commissioner issues a notice declining to decide the application, that notice will provide instructions on how you can then apply to the Magistrates Court.
If the bond claim exceeds the bond amount held
The landlord’s total claim is for more than the bond held, the landlord has two options:
- Follow the normal bond release process (including Commissioner determinations if required) to release the bond first and then make a separate application to the Magistrates Court for the remainder of the claim.
- Apply directly to the Magistrates Court for both the bond release, and the additional amount owed o that exceeds the bond amount held.
If you are dissatisfied with a binding determination made by the Commissioner, you have 7 days to lodge an appeal with the Magistrates Court. To prevent the bond from being paid out during this time, you must provide the Bonds Administration with proof of your appeal (such as a receipt from the eCourts portal) within that same 7-day window.
Let’s Keep the Conversation Going
These reforms are a lot to take in. I’ve found the Consumer Protection WA site to be a lifesaver for checking the latest rules. How are you guys finding the new Commissioner submission portal? I’d love to hear how you’re managing the new timelines.
Sources for Further Reference
• Consumer Protection: Bond disputes for residential tenancies
• Consumer Protection: Rental bonds
• Consumer Protection: New bonds process FAQs
• Consumer Protection: WA Rent Reforms
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legislation and Commissioner Guidelines can change, and you should consult the official Consumer Protection WA website or a legal professional regarding your specific circumstances.