Western Australia Holding Deposits

In WA, Holding Deposits are known as Options or Option Fees. The maximum Option Fee varies from $50-$1,200 depending on the premises. The Option Fee must be credited towards the first rent payment or be refunded to the tenant when the tenancy begins.

What is an Option Fee?

Holding Deposits are known as ‘options’ or ‘option fees’ in Western Australia. Paying an Option Fee grants a prospective tenant an option period where the rental premises is held for them while they make a final decision to enter a tenancy agreement.

Whats is the Option Period and the maximum Option Fee?

The maximum amount for an Option Fee varies:

• When the weekly rent is $500 or less the maximum is $50
• When the weekly rent is more than $500 the maximum is $100
• When the weekly rent is $1,200 or more and the premises is located south of Shark Bay (i.e. South of the 26th parallel) the maximum is $1,200

The landlord and prospective tenant can agree to an Option Period of any length.

Is a receipt required by law?

Although not required, it is recommended that the landlord give the tenant a receipt for an Option Fee. The receipt should state:

• Names of the parties,
• Amount,
• Address of the premises, and
• Period of the option.

What happens to the Option Fee

When the landlord may keep the Option Fee:

• If the tenant does enter the agreement, then the landlord must put the Option Fee towards the rent payable under the agreement. Alternatively, the landlord can simply refund the Option Fee.

When the tenant is refunded the Option Fee:

• If the tenant chooses not to enter the agreement, the Fee must be refunded within 7 days,
• If the landlord refuses to enter the agreement, or
• If the landlord enters an agreement with a different tenant.

Transferring money safely

When paying your deposit, bond or rent by cash make sure you get a receipt. With modern phones this can be as simple as an SMS or email confirming the amount, date and what it is for. Keep a copy of this incase you need it later.

Never ever transfer money to a bank account outside of Australia or use a untraceable money transfer system such as WESTERN UNION. If anyone asks you to do this on any website it is likely to be a scam and you are almost guaranteed to lose your money.

If this ever happens on Flatmates.com.au report the member immediately so we can investigate and take the appropriate action.

You might also be interested in

WA Bonds
WA Tenancy Agreements
WA Rental Payments

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