More than a decade after Western Australia's rental laws were last updated, change is afoot.
After being delayed by COVID, the government has today announced a raft of changes that it says will balance the needs of both renters and landlords.
What are the big changes?
One of the biggest changes is that rents will only be allowed to be increased once a year – down from twice currently.
Tenants will also be allowed to have pets in most cases.
If a landlord doesn't want pets in their property, they'll have to apply to the Commissioner for Consumer Protection and have a reasonable reason to do so.
Renters will also be allowed to make certain minor modifications — but they may be required to restore the property to its original condition at the end of their tenancy.
Landlords will only be able to refuse consent for modifications on certain grounds.
The release of security bonds will also be streamlined, and disputes over bonds and anything else will be handled by the Commissioner for Consumer Protection.
What about no-grounds evictions?
One of the most contentious part of the reforms process has been around no-grounds evictions.
Currently, landlords can end a periodic lease with 60 days' notice, or a fixed-term lease with 30 days' notice, for any reason.
Victoria, Tasmania, the ACT and Queensland have passed laws that mean landlords can only evict some, or all, tenants if certain criteria is met.
Renters' advocates had been crying out for similar changes, saying as long as landlords had the power to evict tenants for no reason, renters would be left worried that asking for repairs to their property or challenging rent increases could see them kicked out.
But property groups like REIWA cautioned that significant changes like that could lead to investors fleeing the market, reducing an already small pool of rental properties and driving prices even higher.
Commerce Minister Sue Ellery, who's responsible for the changes, said making significant changes were not in the community's interests.
"It's not the right time to make it more complex to own and manage a long-term private rental property," she said.
"It's a balancing act. We need to address the issues that some tenants are facing, and we've done that … and we need properties to remain on the market."
Perth has one of the nation's lowest rental vacancy rates, with REIWA estimating it sat at just 0.7 per cent in April — far from the 2.5 to 3.5 per cent it said represented a balanced market.
And what about rent bidding?
The changes will also stop landlords and property managers pressuring or encouraging tenants to offer more than the advertised rent.
But tenants will still be able to offer more than the advertised price if they choose to.
Reforms will also mean rents will have to be advertised as a fixed amount and not a range.
"Prohibiting rent bidding and reducing rent increases to once a year will help ease the financial burden on many families," Ms Ellery said.
What difference will these changes make?
There's no doubt the changes will be welcomed by renters, who have been asking for changes like these for years.
But the biggest challenges with rentals – and housing in general – are around supply.
The government is investing significant amounts in various efforts to try to get more homes built, including stamp duty concessions and moves to expand the state's construction workforce.
Relief is also expected as homes built as part of COVID stimulus measures are gradually finished.
Housing Minister John Carey said the changes announced today were the right move until those supply pressures eased.
"But be very clear, the key answer to providing rental relief in this current market is boosting housing supply, and we're doing that with every measure possible," he said.
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2023-05-26 02:45:47Z
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