This article is from the Australian Property Journal archive
LANDLORDS in Western Australia will be limited to one rent increase every 12 months, while rent bidding will be prohibited and agents must state fixed amounts in advertisements, under tenancy reform laws passed through state parliament.
The Cook Labor government has also committed $8.9 million in extra funding to support streamlined dispute resolution for renters and property owners, through an enhanced Consumer Protection Commissioner role that will deal with disputes over bond payments, tenant applications to keep pets and minor modifications.
Currently, all tenancy matters are heard by the Magistrates Court. The state government said both landlords and tenants have reported that this current process can be “onerous and intimidating”.
Under the new changes to the Residential Tenancies Act, rent bidding will be banned – Western Australia is the last of the states and territories to make that move – and the frequency of rent increases will be limited to once every 12 months, instead of six months. Tenants will also be able to challenge retaliatory action by landlords, keep pets and make minor modifications.
Those looking for housing are confronted with a crushing vacancy rate of just 0.4%, according to the REIWA, while renters will continue to have no-grounds evictions hanging over their heads. A landlord can still kick a fixed-term tenant out with 30 days’ notice, and 60 days’ notice for a periodic tenant, without needing to provide a reason.
Housing Minister John Carey said the reforms would “strengthen protections for tenants while providing certainty for landlords, industry, and potential investors in the rental market”.
“The new laws will strike a balance between improving the rights of tenants, while also improving the rights of mum and dad investors.”
Premier Roger Cook said the reforms will help “thousands of Western Australians to feel more at home in their rental properties”.
It has taken nearly a whole year for the legislation to pass through Parliament since the previous McGowan government announced the ban on rental bidding and changes to the timing of rent increases.
Commerce Minister Sue Ellery the new 12-month minimum period between rent increases allows landlords and tenants time to plan their budgets and assess the affordability of the rental premises for the coming year.
Changes to prohibit rent bidding and retaliatory action will commence shortly. Rules around rent increases, minor modifications, dispute resolution by the Commissioner and keeping pets are expected to come into effect towards the middle of this year, while the new bond release process will take effect early to mid-2025.
REIWA CEO Cath Hart welcomed the passing of legislation.
“The passing of the Act gives tenants, investors and industry certainty and allows us to move forward.
She said the REIWA “particularly appreciate the commitment to provide extra funding for the new streamlined dispute resolution process”.
Hart noted that while the Act had been passed, the legislation was not effective yet and for now it was business as usual.
