New rental laws for WA

UPDATE: The West Australian Government has now introduced legislation into Parliament which proposes a series of residential tenancy law reforms this is one step closer to seeing these reforms actualized.  

After a three year review of the residential tenancy act the State Government of Western Australia has decided to reform the act for the first time in 10 years. But what does this proposal mean for landlords and tenants alike? 

The proposed changes improve tenant rights and experiences but this doesn’t have to be a bad thing for investors and rental property owners. 

Take a look at what’s included in WA’s recommended rental law reforms and how to respond to them as a landlord in Perth. 

Proposed rental law changes in WA

Firstly, the suggested changes to WA rental laws still need to be approved. If they are passed in parliament, they will not take effect until mid-2024, so there is no need to make any immediate changes.

As reported by the ABC, these are the main changes that are recommended: 

• Rental increases

Currently, landlords in Perth are allowed to increase the rent on their properties twice a year. If/when the changes take effect, this will be reduced to only once annually. 

• Pets

Under the proposed changes, landlords will no longer be able to refuse pets without good reason. In the majority of cases, if a tenant wants to have a pet on the premises, they will be allowed to do so.

If you do not want pets at your investment property, you will need to appeal to the Commissioner for Consumer Protection and share a valid reason. It’s not 100 percent clear yet what a valid reason could be but it might be connected to strata by-laws or the suitability of the pet for the home (for example, you may be able to say no to a large dog in a studio apartment). 

We’ll share some updates as they come in. 

• Modifications to the rental property

If the changes come into effect, tenants will be able to make certain minor changes to the premises they are renting such as changing the locks or securing bookcases to the wall. They will, however, be required to ensure that the property is returned to its original condition when they leave.

As the landlord, you will still have the right to refuse consent for changes if there are sufficient grounds to do so.

• Rental bonds

Getting your bond back after leaving a rental property can be tricky at times, especially if there is not a professional property manager looking after the home. If there is a dispute, it can end up being handled by a magistrate. 

As part of the changes to WA rental laws, the release of security bonds at the end of a tenancy will be streamlined, allowing tenants and landlords to apply separately regarding how bond payments are to be disbursed. Any disputes over bond payments will be referred to the Commissioner for Consumer Protection. 

• Rent bidding

From mid-2024, landlords and property managers will be prevented from encouraging tenants to offer more than the advertised rent. Tenants will still be able to do so at their discretion, but it will not be expected.

This reform will also mean that vacant properties will be advertised at a fixed price and not a price range.

• No grounds termination

At the moment, there is no talk of changing what’s referred to as ‘no grounds termination’. This means property investors will continue to be able to end a tenancy agreement without giving a specific reason.

As a landlord, this is helpful if you need to move back into the property at short notice. However, there are still rules and regulations in place that mean you need to give the right amount of notice and follow the steps outlined in your tenancy agreement. 

Who comes out on top?

Information about these changes is relatively limited at the moment because they are still a work in progress. There will be more details that come through over the next few months. 

However, if they do become law, we do not see any of these updates as a negative thing for property investors in Perth. In fact, they present an opportunity to have a better, more enduring relationship with your tenant. If they are happy and comfortable in the home you provide them with, they are more likely to stay for the long term, which helps you to have a more secure investment. 

In terms of having pets, you can work with your tenants to ensure that owning a dog or cat does not result in damage to the property. If there are clear reasons as to why they cannot have a pet, you will still be able to refuse the request. Pet bonds will still be in place and can be used for fumigation of the property on the departure of the animal.

When it comes to raising the rent, with some forward planning you and your tenant can work things out on an annual basis in a way you are both happy with. 

And when it comes to things like the rental bond, it is a positive thing to have a clearer framework for returning the bond in place. 

What you need to know about WA’s potential new rental laws

What these changes do highlight is the value of having a quality property manager like D Residential Group in your corner.

Property investors run into trouble when they do not have a clear understanding of tenancy laws, and when they find it difficult to communicate with their tenants. When you have the help of an expert, you can: 

• Ensure your property is compliant with WA rental laws without having to understand all the fine print yourself
• Sign a contract with quality tenants who won’t take advantage of you and will take care of your home

Given that tenant rights will be expanded, it is more important than ever to have the right people living in your property. Working with a professional property management company in Perth  will ensure that you can adapt to the new WA rental laws and still get great results from your investment. 

Looking for help to comply with WA’s new rental laws? Contact us today.