There are two types of payments a tenant must pay:
- Rental security bond
- Rent
The rental agreement will include the amount which needs to be paid, how often and by which payment method.
The tenant must have at least one payment method option free of any fees. The tenant and landlord must both agree if they want to change the rent payment method.
Tenants are not required to pay any other costs such as administration fees, re-inspection fees, charges for sending tenant utility invoices or breach notices.
Missed and overdue rent
If a tenant has problems paying the rent they need to:
- let the landlord know as soon as possible
- organise to make up the payment
The landlord can choose to:
- accept a late payment
- give the tenant a breach notice (Form 21)
- start the process to end the tenancy
A landlord cannot charge a late fee or interest.
To help landlords and tenants understand the process see the failure to pay rent flow chart.
Payment methods
There are many ways to pay rent. Who pays for fees depends on what method is chosen and what is specified in the agreement.
Payment by cash
The landlord can collect cash payments directly from the tenant. The landlord must provide a receipt.
The landlord does not have to accept cash if there is another fee free way of paying rent.
Payment by cheque
Tenants must allow enough time for the cheque to clear before the rent due date.
The landlord must provide a receipt when the money has cleared.
Payment direct into the landlord's bank account
The tenant can choose how they make this payment e.g. via direct transfer, debit or credit card. A landlord cannot charge a fee for using this method.
Payments to a property manager or agent must go into the business/agency’s trust account.
The tenant is responsible for the charges from their own financial institution e.g. credit transaction fee.
Payment using BPay
The landlord is responsible for any BPay platform fees if BPay is provided as a fee free option to the tenant.
The tenant may have to pay the BPay platform fee if they choose to use Bpay rather than other fee free payment methods.
The tenant is responsible for any fees charged by their own financial institution.
Payment using Centrepay
If Centrepay is the required form of payment on the rental agreement, then the landlord is responsible for any fees. The tenant is responsible to pay the fee if they choose Centrepay as their preferred method of payment.
Payment using third party rent collectors
Some landlords use a third party or rent collection company for rent payments.
The tenant ordinarily enters into an agreement directly with the company. The company will forward payments directly to the landlord.
The tenant cannot be charged any fees in addition to the rent payment. The landlord must absorb the costs associated with this method.
Additional charges
The landlord can ask for compensation if the tenant(s) caused additional costs by breaching the rental agreement.
The landlord must prove the costs were caused by the breach.
Tenant(s) can apply to the Magistrates Court to dispute any charges.
Rent receipts and records
Tenants must be given receipts unless the payment was made by:
- electronic funds transfer (EFT)
- automated payment methods
- or other online method.
Receipts must be issued by the landlord within three days of receiving the rent payment. The receipt must show the:
- tenant/s name,
- date received,
- amount paid,
- address of the premises and
- rental period covered by the payment.
The tenant should keep all receipts just in case there is a dispute about rent payments.
The landlord must keep a record of all rent a tenant has paid.
Tenant's guides
The second guide in the series helps you understand your rights and responsibilities while renting a home in Western Australia.
See other guides: