When you first moved into your rental property, you would have paid a bond to the real estate agency or landlord, depending on how the property was managed.  

The bond is a security deposit that serves as a form of financial protection for landlords in case of damage to the property or unpaid rent. 

Despite many believing otherwise, property managers and landlords do not hold onto your bond for the duration of your tenancy. Bonds in WA are held by the Western Australian Bond Administrator, a specific government managed trust account that sits under the Department of Mines, Industry Regulation & Safety. 

When is a Tenant Entitled to their Full Bond Refund?  

A tenant is entitled to receive their full bond refund if they leave the property in the same condition, minus any fair wear and tear. But this is generally where we see an issue – that description of “fair” can be different for everyone.  

So, what do we mean about fair wear and tear? 

Fair wear and tear are generally things that happen in the day to day living in a property- minor chips and marks on benches and walls, water marks on showers, or mulch in the garden breaking down. These are things that can be expected to happen.  

Damage on the other hand, are those things that really shouldn’t happen if care had been taken – coffee or red wine stains on the carpet, chips or knife marks in benchtops, or gardens being destroyed. Damage doesn’t need to be intentional, but it is those things that won’t happen if some precautions are taken.  

Of course, items like carpet are depreciated over time, so the tenant may not be liable for the full cost of replacing those items. They will however be liable for a pro-rata cost for the damaged area.  

What is the Property Condition Report and Why is it Important When Vacating? 

A Property Condition Report (PCR) is a document that outlines the condition of a rental property at a specific point in time, typically when a tenant is moving in or out. The report includes details about the condition of various aspects of the property, such as walls, floors, appliances, fixtures, and any existing damages. 

When vacating a rental property, the Property Condition Report becomes particularly important for several reasons:  

Documenting Property Condition: The report serves as a detailed record of the property’s condition from when the tenant moved in, compared to when they move out. This can help prevent disputes between the tenant and landlord regarding damages or wear and tear that may have occurred during the tenancy. 

Determining Responsibility for Repairs: By having a clear record of the property’s condition, landlords can assess whether any damages are the result of normal wear and tear or tenant negligence. This helps in determining which party is responsible for repairs or maintenance costs. 

Protecting the Bond: You will be required to pay a rental bond before moving in. The Property Condition Report can be used as a reference point when refunding the deposit. If there are damages beyond normal wear and tear, the landlord or agent may deduct the necessary repair costs from the bond. 

Legal Protection: A well-documented Property Condition Report can provide legal protection to both landlords and tenants. In the event of a dispute, the report can be used as evidence to support claims made by either party. 

Communication: Going through the Property Condition Report with the landlord or property manager at the time of moving in and out allows for open communication regarding any issues or concerns. This can help resolve potential disputes amicably and clarify expectations. 

The condition report should be as detailed as possible, including both inside and outdoor areas, with the main purpose of the report being a benchmark from which to assess at the end of tenancy all damages and property changes that have occurred during tenancy. 

A property condition report is required by legislation and will be the document that is referred to if bond disputes end up in court.  

Important Steps to Getting Your Bond Refunded 

There are several steps involved for securing the refund of a rental bond here in Western Australia. We’ve outlined them below, but of course, if you have any questions around getting a bond refund, you can always reach out to our property management team, or from Tenancy WA.  

Condition Report: Complete a thorough condition report at the beginning of your tenancy. Document any existing damage or issues with the property. Take photos to support your claims and ensure they are date-stamped. 

Rental Agreement: Understand the terms of your rental agreement, especially regarding the return of the bond. 

Final Inspection: Schedule a final inspection with your landlord or property manager before moving out. Address any issues raised during the inspection promptly. 

Cleaning: Clean the property thoroughly, ensuring it meets the standards outlined in your lease agreement. Pay attention to carpets, walls, windows, and appliances. 

Repairs: Make necessary repairs for any damages caused during your tenancy. Keep records of repairs and receipts as proof. 

Notice Period: Provide the required notice period before moving out, as specified in your lease agreement. 

Return of Keys: Return all keys and access devices to the landlord or property manager. 

Forwarding Address: Provide your landlord with a forwarding address for the return of your bond. 

Bond Release Form: Submit a Bond Release Form to the Bond Administrator when you are ready to end the tenancy or sign the bond release form provided by your managing agent. This is typically a joint form filled out by both parties. 

Communication: Maintain open communication with your landlord or property manager throughout the process. 

Dispute Resolution: If there are disputes over the bond, attempt to resolve them with your landlord or property manager first. If an agreement cannot be reached, you can apply to the state’s tenancy dispute resolution service. 

Remember that the process may vary, and you should always refer to the Residential Tenancies Act and regulations in Western Australia for the most accurate and up-to-date information. It’s also advisable to seek advice from a local tenants’ association or legal professional if needed. 

Why is it Important to Get Your Bond Back?  

The bond you pay can be a significant amount (generally equivalent to four weeks rent), so for many people, getting their bond refunded as quickly as possible is important.  There are several other reasons why working with the property manager and getting a bond refunded as quickly as possible is beneficial.  

Moving Expenses: Moving can be an expensive process, with costs such as hiring a moving truck, purchasing packing materials, and possibly paying for professional movers. Receiving your bond back can help offset these expenses.  

New Accommodation Costs: If you’re moving to a new rental property, having your bond returned provides financial support for the initial costs associated with setting up in a new place, such as utility connections and any required furnishings. 

Financial Stability: Receiving your bond back contributes to your overall financial stability. It’s money that you can use for future rent payments or unexpected expenses. 

Good Rental History: Consistently receiving your rental bond back can contribute to a positive rental history. This can be beneficial when applying for future rental properties, as property managers will check rental histories to assess a tenant’s reliability. 

Avoiding Disputes: Clearing any potential issues that might lead to a dispute over the bond is crucial. This includes addressing and rectifying any damage or cleaning requirements before moving out, as well as fulfilling any other conditions outlined in the lease agreement. 

Property Manager Cooperation: Building a good relationship with your property manager or landlord is important. Getting your bond back amicably can contribute to a positive agent/owner-tenant relationship, which can be helpful in obtaining references for future rentals. 

It’s important for tenants to be aware of the terms and conditions related to the bond outlined in their lease agreement and to fulfill their responsibilities to ensure the smooth return of the bond at the end of the tenancy. 

How Long Does It Take to Get Your Bond Back? 

Generally, the property manager will work to have the bond released as soon as possible, but there is a process that needs to be followed first.  

Once the tenant has vacated the property and returned the keys, the agent will walk through the property and complete their section of the property condition report. They will identify any damage or areas that aren’t cleaned to the required standard and give the tenant an opportunity to rectify the issue, as well as obtaining any quotes for repairs if necessary. The agent will also ensure that rent and invoices (water for example) are paid up to date. In some circumstances, the property manager will need to wait for the final water reading to take place, and the bill to be issued so that there are no outstanding amounts to follow up.  

Once all of this is done, and the bond is ready to be signed off on, the tenant will be contacted to sign off on the bond refund. The paperwork will then be sent off to the Bonds Administrator, who will usually take around three days to release the bond into the various accounts.  

If you’re looking for a rental in Perth, or are looking for a property management team to manage your rental, our friendly team would love to have a chat.