Reforms expected to take effect beginning next year
The WA government has introduced a bill to Parliament outlining planned reforms to the Residential Tenancies Act, according to the Real Estate Institute of Western Australia.
These reforms are expected to come into effect in stages starting in early-mid 2024, REIWA said.
“The reforms outlined in the Bill are what we have expected and have previously communicated,” REIWA CEO Cath Hart wrote in a release on REIWA’s website. “There are many details, such as those regarding modifications, that still have to be determined in Regulations and REIWA continues to engage with the Government on these matters to advocate for a practical approach.”
The bill covers various aspects of residential tenancy, including:
- Banning rent bidding
- Limiting rent increases to once a year
- Changes to the dispute resolution process
- Pets in rental properties
- Modifications to rental properties
- Retaliatory action taken by lessor
- Disposal of bonds
“As stated previously, there has been no change to No Grounds Terminations,” Hart wrote. “This was a key part of REIWA’s advocacy platform and WA remains the only state to retain no grounds terminations after a review of residential tenancy legislation.”
Pet policy
One significant change in the bill relates to pets in rental properties. The new provisions will allow tenants to keep a pet on the premises with the consent of the owner, REIWA reported. The bill also specifies circumstances where the owner may withhold consent or impose conditions. Additionally, it outlines the process for tenants to seek approval for a pet and the resolution of disputes through the Commissioner for Consumer Protection.
The bill expands the use of pet bonds to cover damage or cleaning required due to having a pet at the premises. It also clarifies that tenants are responsible for pets, including any nuisance or damage caused, and that pet-related damage is not considered fair wear and tear.
Modifications to rental properties
Regarding modifications to rental properties, the bill establishes provisions regarding a tenant's right to make various types of modifications with the owner's consent. Minor modifications can be made with consent, and conditions may be imposed, according to REIWA.
Read next: Perth rental market continues to face tight conditions – REIWA
The definition of minor modifications will be determined in the upcoming regulations. For major modifications, tenants have options depending on the terms of the residential tenancy agreement. They may make agreed modifications without consent but must notify the owner beforehand, make major modifications with consent (which cannot be unreasonably withheld), or refrain from making major modifications altogether.
The bill also holds tenants responsible for the costs of making, maintaining, removing, and restoring modifications. Tenants must consider the age and character of the property and comply with relevant laws or scheme by-laws.
Retaliatory action
The bill introduces a new section called "Retaliatory action taken by lessor," which provides reassurance for tenants who believe the owner has taken retaliatory action in response to them exercising their rights.
This includes actions such as increasing rent or terminating the lease unfairly. Tenants already have the opportunity to take action if they feel their lease has been terminated unfairly, and this new section further strengthens their rights.
REIWA support
REIWA has expressed support for improvements to the dispute resolution process but said it had concerns about the implementation of this reform.
The organisation said it would be monitoring the bill’s progress closely and providing feedback. In REIWA’s pre-budget submission, it has requested appropriate funding for the dispute resolution process.
Perth’s shrinking vacancy rates have caused rents to hit record highs in recent months.
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