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The landscape of rental properties in Western Australia is undergoing significant changes with the recent announcement of rental reform legislation.
These reforms, which aim to modernise the Residential Tenancies Act, are set to impact tenants and landlords alike, creating a more balanced relationship and ensuring that rental agreements are fair and reflective of current housing needs.
Samantha Fisher, who is the WA property management business development executive for the country’s largest real estate group, is currently educating her network on the reforms.
“The reforms are a response to the evolving housing market in WA and the need for updated regulations that address the realities of today’s tenants and property owners,” she said.
The reforms will take effect across three phases and key components include:
Phase One: Prohibition of rent bidding and retaliatory action
New provisions will enable a tenant to seek remedy or compensation by a court if they believe the lessor has taken retaliatory action after they exercised their rights as a tenant.
Rent bidding will also be prohibited to allow for clear and fixed amounts of rent when advertising.
Phase Two: Rent increases, pets, minor modifications and dispute resolution process
Rent increases will only be able to be increased every 12 months (currently every six months). This takes into consideration six month leases and renewals as well as periodic leases and is intended to help tenants budget more effectively and provide them with peace of mind regarding their living expenses.
Pet ownership: Recognising the importance of pets to many individuals and families, the reforms make it easier for tenants to keep pets in rental properties. Landlords will now require reasonable grounds to refuse consent for pets.
Modification of premises: Tenants will have more freedom to make minor modifications to the property (e.g., installing picture hooks, shelving) with the landlord’s consent, promoting a greater sense of home and personalisation of rental spaces. The landlord will need to respond to the modification request within 14 days.
Dispute resolution process: Applications regarding disputes made by tenant or lessor will be determined by a commissioner (currently through a court application and before a magistrate). An appeal process will be available for all parties to proceed to court if they do not agree with the commissioner's decision.
Phase Three: Bond disposal process
The biggest and final change in these reforms will see the tenant being able to apply for their bond release. Currently it is the lessor (or property manager) who commences this process and any disputes are resolved in front of a magistrate. Under the new process, either party can apply for the bond and disputes will be referred to the commissioner who will decide on the matter or refer it to court.
So what is the path forward?
“As WA moves towards implementing these rental reforms, both tenants and landlords must stay informed about their new rights and responsibilities,” Samantha said.
“Education will be key, as will open communication between tenants and landlords to ensure that the transition to these new regulations is as smooth as possible. Our network is being kept up to date with the Reforms through online and in office training sessions.”
“We want our teams to be ready for the changes and guide their clients through the changes as they occur,” she finished.
