Introduction: It’s been more than a decade since Western Australia’s tenancy laws underwent a major update. Now, in response to the evolving rental market, the state government is proposing significant reforms aimed at enhancing stability and security for tenants.
1. Pets in Rental Properties: A New Frontier Under the proposed reforms, tenants may soon have the right to keep pets in rental properties. Landlords wishing to object must justify their concerns to the Commissioner for Consumer Protection, focusing on health and safety risks. REIWA advocates for flexibility, suggesting conditions like additional bonds and cleaning requirements to mitigate landlord concerns.
2. Empowering Tenants: Minor Property Modifications Tenants are set to gain more control over their living space with the ability to make minor modifications, such as installing hooks or LED bulbs, without requiring landlord consent. For more significant changes like painting or disability modifications, consent is necessary, albeit with reasonable conditions set by landlords.
3. Rent Stability: Limiting Increases To provide tenants with greater financial predictability, the proposal limits rent increases to once per year, aligning WA with eastern states’ standards. This change aims to balance the needs of both tenants and landlords amidst fluctuating market conditions.
4. Fair Practices: Prohibiting Rent Bidding Under the new legislation, rent bidding—a practice where landlords solicit higher rent offers from tenants—will be banned. This ensures transparency and fairness in rental pricing, with advertised rents to be fixed amounts rather than ranges.
5. Streamlined Bond Processes Proposed reforms aim to simplify the bond release process. Parties can apply separately for bond release, and if there’s no response within 14 days, the bond will be released according to the initial request. Disputes will be adjudicated by the Commissioner for Consumer Protection, reducing reliance on the Magistrates Court.
6. Dispute Resolution: Enhancing Efficiency In a bid to streamline operations, the Commissioner for Consumer Protection will handle disputes related to pets, minor modifications, and bond releases. This move aims to expedite resolutions while reserving the Magistrates Court for more complex legal matters.
7. Retaining Landlord Rights Despite the reforms, landlords retain the right to terminate tenancies without grounds, providing flexibility and security in managing their properties—a key consideration for property investors in a tight market.
Conclusion: With Perth’s rental market facing challenges amidst rapid growth and low vacancy rates, the proposed changes to WA’s tenancy legislation are crucial. Striking a balance between tenant rights and landlord interests is paramount to fostering a healthy rental sector. Stay tuned as these reforms are debated in parliament this year, with anticipated implementation by the latter half of 2024.