WA’s New Rent Reforms: Phase 3 Is Coming – A New Bond Disposal System and Higher Pet Bonds for Tenants

Western Australia’s rental laws are undergoing the biggest shake up in decades, with the third and final phase on the horizon. Here’s what it means for both landlords and tenants. 

The WA State Government’s updates to the Residential Tenancies Act (RTA) have been rolled out in three phases.

The first two phases of reforms were implemented in 2024, with the final stage – Phase 3 – expected to be introduced this year.

Phase 3 focuses on two key areas: how rental bonds are released, and increases to the pet bond.

While bond disputes have traditionally required agreement between parties or a court process, the upcoming reforms aim to make the process faster, simpler and less reliant on the courts.

A quick recap: Phases 1 and 2 of the rent reforms

Before looking ahead to Phase 3, it’s helpful to understand what has already changed.

Phase 1 included the ban on rent bidding and stronger protections for tenants against retaliatory actions, such as unfair rent increases or lease termination after raising maintenance concerns.

Phase 2 delivered several changes affecting both landlords and tenants, including:

• Rent increases limited to once every 12 months
• Tenants able to request permission to keep pets
• Tenants able to make minor modifications to a rental home in many cases

These reforms were designed to modernise the rental market and provide clearer rules for both landlords and tenants.

Phase 3: Changes to the bond release process

The final stage of reforms will introduce a streamlined bond disposal system, changing how rental bonds are claimed and returned at the end of a tenancy.

Currently, bond funds are typically released only after both the landlord and tenant agree on how the bond should be distributed. 

If an agreement cannot be reached, the matter goes to the Magistrates Court, which can be time-consuming and costly.

Phase 3 will introduce a more flexible system.

Under the proposed changes:

• Tenants, landlords or property managers will be able to initiate a bond release request independently through the bonds system.
• Once an application is submitted, all parties will be notified of the request.
• If everyone agrees on the distribution, the bond can be released quickly.
• If there is a dispute, the matter will be referred to the Commissioner for Consumer Protection rather than going straight to court.

This new process is designed to reduce delays and simplify the resolution of bond disputes.

How disputes will be handled

Where a landlord and tenant cannot agree on how the bond should be divided, the dispute will be assessed through a Commissioner determination process.

This system allows both parties to submit evidence and their arguments online, with the Commissioner making a decision based on the information provided.

The intention is to provide a quicker and less formal pathway to resolve disagreements, avoiding the need for many disputes to proceed through the court system.

What this means for landlords and investors

For property investors, the key takeaway is that the rules around claiming bond money will not fundamentally change.

Landlords will still be able to seek deductions for legitimate costs such as damage, unpaid rent or outstanding expenses.

What will change is how disputes are handled.

The new system aims to:

• Reduce the number of disputes going through the courts
• Provide a faster pathway for resolving disagreements
• Allow either party to initiate the bond release process

In practice, this means the administrative process around bonds will become more streamlined, but landlords (or their property manager) will still need to maintain clear records, property condition reports and supporting evidence if a dispute arises.

Higher pet bonds

Another change as part of Phase 3 is an increase in the pet bond – a requirement for tenants who have pets.

This will now increase from $260 to $350.

Landlords must lodge the pet bond with the Bond Administrator, and importantly, the pet bond can be used for damage caused by the pet, rather than only for fumigation.

If the tenant gets a pet after the tenancy begins, the landlord can request the tenant pay a pet bond when the request for a pet is approved, or when the next rent increase is due.

The bigger picture

Taken together, the three phases of reform represent a significant shift in Western Australia’s rental framework.

While earlier stages focused on tenant rights, rent increases, pets and property modifications, Phase 3 is about modernising the end-of-tenancy process, particularly when it comes to bond payments.

For landlords and tenants alike, understanding how the new bond release process will work will be an important part of navigating WA’s evolving rental legislation over the coming years.

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