Western Australia's rental sector could see significant improvements in security and efficiency under a new proposal to overhaul the bond lodgement process.
Current System Creates Unnecessary Risks
The Real Estate Institute of Western Australia (REIWA) is advocating for a fundamental change to how rental bonds are processed, citing concerns about cybersecurity threats and administrative burdens.
Under the existing system, tenants pay their bond - typically equivalent to one month's rent - to property managers or landlords, who then have up to 14 days to lodge the funds with the bond administrator at the Department of Local Government, Industry Regulation and Safety (LGIRS) through BondsOnline.
This manual process involves property managers acting as intermediaries, collecting, receipting, reconciling and lodging tenant bonds, creating what REIWA describes as significant compliance oversight and exposure to cyber risk.
Proposed Solution: Direct Payments to Bond Administrator
REIWA President Suzanne Brown has put forward a straightforward solution that would allow tenants to pay their bond directly to the bond administrator, completely bypassing the property manager's handling of funds.
The proposed system would generate automated notifications or receipts to both tenants and property managers immediately upon payment, potentially saving up to two weeks in processing time while ensuring transaction visibility and accuracy.
This reform would represent a major shift from the current practice where REIWA property managers spend considerable work hours managing bond transactions between tenants and the bond administrator.
Win-Win Outcome for Rental Sector
The direct payment approach promises multiple benefits across the rental ecosystem. For tenants, it provides greater certainty and security for what is often a substantial financial commitment.
Property managers and landlords would see significant reductions in administration time and red tape, freeing them to focus on other aspects of property management.
REIWA believes the proposed changes would enhance consumer confidence in the rental system while maintaining the protective function of bonds as safeguard funds for property owners against damage, unpaid rent, or utility bills.
The institute has committed to working with the State Government to encourage adoption of what they describe as a simple but impactful reform that strongly supports improving security, efficiency and transparency in Western Australia's rental market.
