Portable bonds and interest off ‘dead’ money among proposed rental shakeup

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The McKell Institute’s WA branch has called on the Cook Government to follow Victoria and New South Wales and legislate a “portable bond” that stops renters from needing to pay thousands for a new bond when they’re moving rentals.

West Australians should be able to take their bond with them between rentals and earn interest on it when it is sitting dormant, a think tank is urging.

The McKell Institute’s WA branch has called on the Cook Government to follow Victoria and New South Wales and legislate a “portable bond” that stops renters from needing to pay thousands for a new bond when they’re moving rentals.

The institute argued that not needing to pay for a new bond could save renters an upfront cost of about $3000, which is the standard four-week bond rate at Perth’s current median advertised rent of $750 week.

The old bond is eventually returned to the renter pending any issues with their previous rental, but the institute argued the impost of finding thousands of dollars for a new bond while their old bond was locked up was prohibitive.

“For many West Australians, moving for work or a new home means finding thousands of dollars for a new bond while the old one is still tied up. With the median Perth rent at $750 a week, that is a real cost, and it falls on the people the state most needs to attract and retain,” McKell Institute WA executive director Jessica Bukowski said.

“The double bond is an up-front barrier that makes it harder for people to move for work, and to move closer to the jobs and communities they want to be part of.”

According to the institute’s Make it Portable report released on Monday more than 60,000 tenancies end each year with the typical lease lasting less than two years.

It said with WA’s rental prices jumping 6.9 per cent per annum since COVID-19, the impost of an upfront bond payment has also grown significantly.

Bukowski said any extra financial burdens can impact highly mobile workforces that are in demand in WA.

Inicio del artículo, extracto de The Age. Para leer el resto, abra el artículo en el sitio del medio.