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A private landlord has been fined $8,500 by the Perth Magistrates Court after demanding three months of rent from a tenant before they moved in.
An NSW landlord has pleaded guilty to four charges under the Residential Tenancies Act after unlawfully demanding the tenant pay three months of rent upfront, and mishandling bond money.
Back in 2024, the landlord entered into a tenancy agreement and demanded $16,000 for the first three months’ rent upfront for a property she owned in Ardross, Western Australia.
The demand that was made one month before the tenant took occupancy violated the Residential Tenancies Act, which prohibits landlords from seeking more than two weeks’ rent in advance at this stage of the tenancy.
Following the initial request for three months’ rent value, the landlord asked for a further $2,700 in fortnightly rent.
The landlord then threatened the tenant in a text, stating that she would find someone else if the payments were not made.
In addition to asking for rental money, the landlord did not lodge the $16,200 security bond with the Consumer Protection within the required 14-day time frame.
The woman was found to have lodged only $5,400 of the bond four months after receiving it, with the remaining $10,800 being deposited following the initiation of prosecution action by Consumer Protection.
Additionally, the tenant received two copies of a property condition report 32 days late, instead of the required seven days.
The landlord pleaded guilty to four charges of breaching the act in relation to her handling of rent and bond payments, and the property condition report.
During sentencing, the Perth Magistrate said landlords have obligations, and ignorance is no excuse.
Commissioner for consumer protection, Owen Kelly, said that the Residential Tenancies Act is a vital safeguard for tenants, who are particularly vulnerable during periods of high demand in the rental market
“When tenants have fewer options, they may have little to no power to negotiate with landlords before or during the tenancy. Therefore, it’s crucial landlords respect the laws that have been put in place to protect them,” Kelly said.
“The tenant in this case was subjected to unnecessary risk by being asked to pay three months of rent upfront before moving in.
“She was also placed under unnecessary financial burden when further rent demands were made before that initial period had expired.”
He added that handling bond money was serious, and the 14-day lodgement rule was in place to safeguard tenants and landlords’ interests.
“All landlords with property in Western Australia need to familiarise themselves with the laws, or delegate this responsibility to a property manager, otherwise they risk facing legal repercussions,” Kelly concluded.
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