A Closer Look
Western Australia's rental market is facing a significant challenge with a vacancy rate of just 0.4%, far below the healthy rate of 2.5-3.5%. To address this issue and provide greater protection for renters, the state government has passed new rental tenancy reform laws. These laws are scheduled to be rolled out around mid-2023.
Rent Increases: Landlords will only be able to increase rent once a year, instead of every six months as per the existing law.
The practice of "rent bidding," where prospective tenants offer more than the asking price, will be outlawed.
Renters will be allowed to make minor modifications to their rental properties, such as hanging paintings, installing fly screens, or planting a vegetable garden.
Landlords will no longer be able to refuse a tenant for keeping a pet in most circumstances. However, renters will still be responsible for any damage caused by their pets and cleaning up after them.
Disputes relating to bonds, pets, and minor modifications will be handled by Consumer Protection, eliminating the need for court appearances in most cases.
Despite these positive changes, no-grounds evictions will still be allowed in Western Australia. This means landlords can evict tenants without providing a reason, with 30 days' notice for fixed-term tenants and 60 days' notice for periodic tenants.
Rental advocacy groups have welcomed the reforms, stating that they will provide much-needed relief to the state's 700,000 renters. However, they also argue that the reforms should have included a ban on no-grounds evictions.
The Liberal Party has criticized the reforms, claiming that they unfairly take power away from landlords and discourage property investment. They believe this will ultimately worsen the housing crisis.
Western Australia and the Northern Territory are the only states that allow no-grounds evictions for both fixed and periodic-term tenants. Other states have either banned no-grounds evictions completely or are considering doing so.
Overall, the new rental tenancy reforms in Western Australia represent a step in the right direction for renters. However, the issue of no-grounds evictions remains a significant concern.