WA Bond Variation When Tenants Change: Transfers, Top-Ups, and Partial Refunds

The Bond Does Not Automatically Follow a Departing Tenant

When a co-tenant leaves a shared rental in Western Australia, the security bond held by the Bond Administrator stays exactly where it is. There is no automatic partial refund to the outgoing tenant and no automatic transfer to a replacement. The bond sits in trust until someone lodges the correct paperwork.

This catches many landlords off guard. The departing tenant asks for "their share" back, the incoming tenant expects to pay their portion, and the landlord is left coordinating a process that involves financial settlement between the tenants and a formal variation with the Bond Administrator.

How Co-Tenant Bond Changes Work

The process has two distinct parts — one private, one official:

Private settlement between the tenants: The outgoing and incoming tenants negotiate directly about the bond share. If the original bond was $2,400 split between three tenants at $800 each, the incoming tenant typically reimburses the departing tenant $800. This is a private financial arrangement — the landlord is not obligated to mediate it, and the Bond Administrator has no involvement in it.

Official variation with the Bond Administrator: Once the tenants have settled their financial arrangement, all parties — outgoing tenant, incoming tenant, continuing tenants, and the landlord — must sign and lodge a Variation of Security Bond form. This can be done electronically through BondsOnline or on paper. The variation updates the official record so it reflects who is actually entitled to claim the bond at the end of the tenancy.

Both steps matter. Without the variation form, the Bond Administrator's records still list the departed tenant as a bond contributor. When the tenancy eventually ends, the release application will reference someone who may have moved interstate or become unreachable — creating unnecessary delays and potential disputes.

Bond Top-Ups After a Rent Increase

When rent goes up, Section 31 of the Residential Tenancies Act allows you to request a proportional bond top-up, provided the total bond stays within the statutory four-week cap (for rents at or below $1,200 per week).

The sequence matters:

1. Issue a valid rent increase notice using Form 10 (minimum 60 days' written notice, no more than once every 12 months)
2. Give a separate written bond increase notice stating the additional amount and payment date. The payment date must be at least 60 days after this notice and cannot be before the rent increase takes effect.
3. Receipt the additional amount immediately upon receiving it
4. Lodge the top-up with the Bond Administrator within 14 calendar days using a Variation of Security Bond form

The top-up follows the same 14-day lodgement deadline as the original bond. Late lodgement of a top-up carries the same penalties — up to $2,000 by infringement notice or $20,000 if prosecuted in court.

Example: Rent increases from $500/week to $550/week. The original bond was $2,000 (four weeks at $500). The new four-week cap is $2,200, so you can request a $200 top-up. Give a separate written bond increase notice with a payment date at least 60 days later and no earlier than the rent increase; when the tenant pays, issue a receipt and lodge a variation within 14 days.

Ownership and Management Transfers

If you sell the rental property or change property managers, the bond stays with the Bond Administrator — it does not transfer through the settlement process or the management handover. The new owner or managing agent must lodge a Variation of Security Bond form within 14 days to update the lessor details on record.

This is easy to overlook during a sale. If the variation is not lodged, future bond release notices go to the wrong entity. The sale contract should specify who handles the variation, and the selling agent should confirm it with the Bond Administrator.

Partial Refund Calculations

There is no statutory formula for splitting a bond between co-tenants mid-tenancy. The split is a private arrangement. However, a clean record helps everyone:

• Document the original contribution of each tenant when the bond is first collected
• When a tenant leaves, record the agreed settlement amount and who paid whom
• Lodge the variation form promptly so the official record matches reality

If a mid-tenancy variation also involves a pet bond (capped at $350 total per tenancy, not per animal), the variation form should reflect whether the pet bond stays, increases, or is removed based on the new tenancy arrangement.

Avoiding Common Variation Mistakes

The most common problems landlords encounter with bond variations:

• Not lodging the variation form at all. The bond record stays outdated, causing complications at exit
• Mixing up the forms. The Variation of Security Bond form is distinct from the Security Bond Release Application — use the variation form for mid-tenancy changes, the release application for end-of-tenancy payouts
• Missing the 14-day deadline on top-ups. The clock starts when you receive the money, not when the rent increase takes effect

The Rental Bonds in Western Australia guide includes a mid-tenancy variation log that tracks co-tenant changes, top-ups, and ownership transfers with the dates and amounts you need for each variation filing.

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