REIWA welcomes the start of the new bond release and dispute process, marking the final phase of the reforms to the Residential Tenancies Act announced in May 2023.
The new bond release process will allow property managers, landlords and tenants to apply for the release of the bond at the end of the tenancy. Any disputes over the bond will go through the Commissioner determination process.
REIWA President Suzanne Brown said the Institute hoped the new Commissioner determination process would lead to a speedy resolution of disputes.
"Previously, disputes over the bond had to go through the Magistrates Court, which could be a very lengthy process. The outcomes also varied," she said.
"Now, in most cases, the dispute will be reviewed via the Commissioner determination process, and this should help tenants get their bond returned in a more timely manner. Of course, this is dependent on the Department of Local Government, Industry Regulation and Safety's Consumer Protection division being resourced sufficiently.
"We also believe the Commissioner determination process will lead to greater consistency in dispute resolutions, which is a good outcome for all. And unlike decisions made by the courts, decisions regarding bond disputes will be published on the Consumer Protection website, providing consistent guidance for industry and the community."
Ms Brown cautioned tenants against applying for the bond as soon as they moved out of the property.
"While it might be tempting, it will not speed up the release of the bond and could cause delays," she said.
"There are processes to be followed, such as the final inspection and property condition report, and the bond will not be released immediately an application is made.
"It is in the best interests of all parties that any issues be discussed and addressed, or an outcome negotiated before an application is made for the bond. This will be the fastest way to get the bond released."
As a final part of the change to bonds, the pet bond will be increased from $260 to $350 and will be able to be used for more than fumigation.
Ms Brown said that while REIWA held strong views on policy changes that could negatively impact the rental market, the Institute welcomed positive change.
"Lately we have been very vocal about potential changes to rental legislation and taxation policy. Our concern is that these reforms could impact rental supply in a challenging market, and, therefore, be detrimental to tenants," she said.
"However, we are always willing to work with government on reforms such as the bond process, that lead to positive change, while balancing the rights of tenants and investors.
