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The WA Rental Reform: What You Need to Know About the Residential Tenancies Amendment Bill 2024

Posted by Charlie on 01/08/2024
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The WA Rental Reform: What You Need to Know About the Residential Tenancies Amendment Bill 2024

In a significant move for Western Australian renters and property owners alike, the Residential Tenancies Amendment Bill 2024 was passed earlier this year, introducing major changes to the rental landscape. If you’re wondering how these changes impact you, here’s a detailed look at the reforms and their current status as of August 2024.

A Three-Phase Approach to the WA Rental Reform:

The WA rental law reform is being rolled out in three phases, with Phase Two currently underway as of July 2024. Here’s a breakdown of what each phase entails:

Phase One – May 2024

  • Rent Bidding: Landlords and property managers can no longer ask for more than the advertised rent. This aims to make the rental process more transparent and fair.
  • Retaliatory Action: Tenants now have the right to seek remedies or compensation if they face retaliation after exercising their rights.

Phase Two – Mid 2024

  • Dispute Resolution Process: A simplified process has been introduced where minor tenancy issues can be addressed by the Commissioner for Consumer Protection. Instead of going to court, both parties can submit written evidence, and the Commissioner will make a decision. This phase also includes changes related to pets, minor modifications, and rent increases.
  • Pets: Tenants can now keep pets in most cases, provided they pay a pet bond for any potential damage. Property owners have 14 days to approve or refuse pet applications and can set conditions on pet ownership.
  • Minor Modifications: Tenants can make minor modifications to the property, such as installing shelves or painting walls, with the owner’s approval. Tenants are responsible for the cost and for restoring the property to its original condition at the end of the tenancy.
  • Rent Increases: Rent can be increased only once every 12 months for both periodic and fixed-term leases. Existing leases signed before the new legislation will still allow for rent increases every six months until the current term ends.

Phase Three – Early 2025

  • Bond Disposal: The process for handling bond disputes will be simplified. Both tenants and owners will be able to apply separately for bond release, and the Commissioner for Consumer Protection will make the final decision.

What Tenants Need to Know

Phase One Highlights:

  • Rent Bidding: You’ll no longer be pressured to pay more than the advertised rent.
  • Retaliatory Action: If you face negative consequences after exercising your rights, you can seek compensation through the court.

Phase Two Highlights:

  • Dispute Resolution: Minor issues can be resolved through a streamlined process involving the Commissioner for Consumer Protection. Both you and your landlord can present evidence and receive a decision without going to court.
  • Pets: You can now request to have pets, and the process requires the landlord to respond within 14 days. They can set conditions, but you can appeal unreasonable refusals.
  • Minor Modifications: You can make certain changes to the property with approval from your landlord. You’ll need to cover costs and restore the property afterward.
  • Rent Increases: Rent increases are limited to once every 12 months, providing greater stability.

What Remains Unchanged:

  • Rent Capping: There’s no cap on how much rent can increase; it remains market-driven.
  • No Grounds Terminations: Landlords can still end tenancies without giving a specific reason, although they must provide appropriate notice.

What Landlords Need to Know

Phase One Highlights:

  • Rent Bidding: You must list the property at a single, non-negotiable price.
  • Retaliatory Action: Be aware that tenants can now seek compensation if they believe they’ve been unfairly treated after asserting their rights.

Phase Two Highlights:

  • Dispute Resolution: Minor issues and bond disputes will be managed by the Commissioner for Consumer Protection. Prepare to submit written evidence if disputes arise.
  • Pets: You can refuse pet applications based on specific legal grounds but must respond within 14 days. You can set conditions on pet ownership and handle disputes through the Commissioner if necessary.
  • Minor Modifications: You’ll need to respond to modification requests within 14 days. You can refuse based on legal or safety concerns but must provide reasons for your decision.

What Remains Unchanged:

  • Rent Capping: Rent increases will still be based on market conditions without a cap.
  • No Grounds Terminations: You can end a tenancy without a specific reason, provided you give the appropriate notice.

Information in this blog post is provided by content from the DMIRS & REIWA websites*

Need More Information?

Please view the DMIRS WA rent reform frequently asked questions or visit REIWA. Staying informed about these changes will help both tenants and landlords navigate the evolving rental landscape in Western Australia effectively.

Keep an eye out for further updates as Phase Three approaches in early 2025, which will bring additional changes to the bond disposal process.

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