WA Rent Reforms

Residential Tenancies Amendment Act 2024

Your house My Home logo
Your house My Home logo, by Consumer Protection

Upcoming changes to WA rental laws give tenants the freedom to make their house feel like a home, and provide a fair balance between the rights of tenants and landlords.

The changes begin, in stages, from May 2024.

 

WA Rent Reforms 2024, by Consumer Protection WA

Rent bidding ban – likely to start May 2024

A tenant cannot be pressured into paying more money to help them secure an available rental property.

Landlords or agents:

  • must advertise properties at a set amount. For example: ‘$425 per week’ not ‘offers between $400 and $500 per week’.
  • must not encourage a potential tenant to offer to pay more than the advertised rent amount.

If a landlord or agent asks or encourages a tenant to offer more money, contact Consumer Protection on 1300 30 40 54.

Will landlords or property managers still be able to accept offers of more than the rental amount?

Landlords and their agents will be able to accept offers of more than the rental amount when the offer is freely given by tenants. However, they cannot encourage or pressure a tenant to offer more than the rental amount. This includes phrases like:

  • “someone else has made an offer, would you like to match it?”;
  • “there are lots of people interested in this property, you can secure it if you offer more rent”; and
  • “you have not been working full time for very long, you might want to strengthen your application by offering more rent.”

As a landlord or agent, what do I do if a tenant asks me whether they should offer a higher rent?

If a tenant proposes offering a higher rent, the lessor or their agent must respond along the lines: “That is a matter for you and not something I want to comment on. You need to make your own decision about the value of the property and the rent you wish to pay”.

Retaliatory action – likely to start May 2024

If a tenant believes their landlord or agent is taking action against them for exercising their rental rights (known as retaliatory action), they can challenge that action in the Magistrate’s Court.

  • For example, a tenant thinks their rent was deliberately increased, or their lease agreement not renewed, just because they asked for some basic maintenance or made a complaint about their landlord or agent.

What would be considered retaliatory action?

Retaliatory action is action taken by the landlord or agent as payback or because the tenant sought to enforce their rental rights. Action by a landlord or agent that might be considered retaliatory includes:

  • Issuing the tenant with a breach notice (other than for non payment of rent)
  • A rent increase
  • Commencing termination action
  • Non-renewal of the tenancy agreement

Only the Magistrates Court can decide if the action by the landlord or agent is retaliatory.

What relief might a tenant reasonably expect from a court hearing?

The court can make an order it considers appropriate in the circumstances. This could include an order setting aside the landlord’s action or for compensation.  

12 month rent rises – likely to start July 2024

Rent increases will only be allowed once every 12 months.

  • Right now, landlords or agents can increase the rent once every six months.
  • If a rental agreement is periodic (with no end date), the minimum 12-month time frame between rent increases will apply immediately when this reform begins.
  • If a rental agreement is fixed (with a specific end date), the minimum 12-month period between rent increases will apply once the fixed term ends.

Why is this change being made?

The minimum 12 month period before rent can be increased allows tenants time to assess the affordability of premises and plan their budget.

The new law will make WA consistent with other states and territories such as the ACT, South Australia, Tasmania, Queensland, New South Wales and Victoria which require a minimum of 12 months between rent increases.

What if I have a 6 month fixed term agreement which I continually renew - can the rent be increased with each new contract? e.g. Lived in a place from January – June, new lease in June increase rent.  When January comes – can rent increase again with new lease?

No. Where there are “rolling” fixed term leases between the same parties for the same premises, this will be treated as a continuous agreement for the purpose of calculating the timeframe and rent can only be increased once every 12 months.

I have a fixed term agreement with rent increases already agreed and written in.  Will these increases still apply when the changes come into effect?

Yes.  Any rent increases agreed up front and written into a fixed term agreement will continue to apply until the end of the current term of the tenancy.  If the agreement is renewed or extend after the end of the current term, the new provisions will apply and the next rent increase must be at least 12 months from the most recent rent increase.

Pets welcome – likely to start July 2024

In most cases pets are allowed, however tenants must seek permission. Tenants will need to fill in an approved form to give to the landlord or agent. 

  • Landlords or agents can refuse if:
    • a local council by-law specifically prevents pets;
    • they can prove a ‘good reason’ to the Commissioner for Consumer Protection – for example the property is not fully fenced.
  • A landlord can place ‘reasonable conditions’ on having a pet – for example a bird must remain in a cage, or the carpets must be professionally cleaned at the end of the tenancy.
  • A landlord or agent can use the pet bond in addition to the regular bond to clean mess and fix damage a pet has caused.

Can I refuse permission for my tenant to keep a pet?

Yes, on reasonable grounds. You can refuse consent for your tenant to keep a pet without making an application to the Commissioner for Consumer Protection where keeping the pet would contravene a written law, local law or scheme by-law. 

You may make an application to the Commissioner for Consumer Protection to refuse consent for your tenant to keep a pet in a range of circumstances, such as where the premises are unsuitable for keeping a pet or where keeping the pet is likely to cause the lessor undue hardship.

What condition can I place on allowing my tenant to keep pets?

You can place reasonable conditions on your consent for the tenant to keep pets. “Reasonable conditions” include:

  • Conditions about the number of animals that may be kept at the premises.
  • Conditions about the cleaning, maintenance or fumigation of the premises in relation to the keeping of the pet.
  • Conditions that you have had approved by an application to the Commissioner for Consumer Protection.
  • Conditions will be prescribed in the Residential Tenancies Regulations when the regulations are made.

If the pet damages the premises, will the tenant be responsible?

Yes. The tenant is responsible for repairing any damage caused by the pet.

What happens if the pet causes a nuisance?

The tenant will be responsible for any nuisance caused by a pet kept at the premises.

Why can’t landlords refuse to have pets in their rental properties?

Tenants who currently have pets or wish to have a pet often face limited choice in the number of rental premises available, or they face uncertainty if they move to another rental property. Tenants can be faced with the significant emotional stress of having to abandon a much-loved pet to secure housing.

Under the new laws, landlords will be permitted to refuse consent to have a pet where it is reasonable to do so.

The landlord may also place reasonable conditions on the keeping of a pet, such as that it must be kept outside.

Home sweet home - likely to start July 2024

To help make a rental feel like a home, small, personalised changes (known as minor modifications) will be allowed in most cases, however tenants must seek permission.

  • The list of minor modifications allowed has not been finalised and may include:
    • Hanging pictures on the wall
    • Putting up flyscreens
    • Installing a water-saving shower head
    • Planting a vegetable garden
  • Landlords or agents can refuse if:
    • a local council by-law specifically prevents the change
    • there is asbestos or heritage listing
    • they can prove a ‘good reason’ to the Commissioner for Consumer Protection – for example it would be too costly to restore the property.
  • A landlord or agent may be able to place 'reasonable conditions’ on minor changes - for example a vegetable garden must be well maintained, or a certain standard hook must be used.
  • At the end of the rent agreement, a tenant will have to remove any changes made and restore the premises, unless the landlord or agent has agreed to leave them – for example remove picture hooks, fill in holes and repaint the wall.

What kinds of modifications will the tenant be able to make where the landlord’s consent cannot be unreasonably withheld?

The types of minor modifications that the new laws will apply to have not yet been decided. However, it is likely that the list of minor modifications may include things like picture hooks, LED light bulbs that do not need new fittings, curtains, blind cord anchors, adhesive child safety locks, vegetable or herb garden, flyscreens on doors and windows. 

A landlord will be able to impose reasonable conditions on making modifications.

The types of minor modifications will be decided through consultation in the coming months.

Can I refuse permission for my tenant to make minor modifications?

It depends on the type of modification that the tenant is asking to make and why you want to refuse.

If the modification is on the list that will be prescribed in the Residential Tenancies Regulations, you will only be able to refuse consent in limited circumstances. The types of modifications on this list have not been decided yet but will probably include things like picture hooks, LED light bulbs that do not need new fittings, curtains, blind cord anchors, adhesive child safety locks, vegetable or herb garden, flyscreens on doors and windows.

You will be able to refuse the request without making an application to the Commissioner for Consumer Protection in a few situations, such as where the modification would disturb material containing asbestos or a written law or scheme by-laws prohibit making the modification.

You will be able to make an application to the Commissioner for Consumer Protection to refuse in other circumstances such as where the modification would result in additional maintenance costs, would make the premises unsafe or the action required to reverse the modification is not reasonably practical.

You may also impose reasonable conditions on making the modifications. For some modifications this includes that the work must be undertaken by a qualified person.

For other more significant modifications, landlords will be able to refuse consent, but consent cannot unreasonably be withheld.

What conditions can I place on allowing my tenant to make minor modifications?

You can place reasonable conditions on your consent for the tenant to make minor modifications. “Reasonable conditions” include:

  • Conditions that you have had approved by an application to the Commissioner for Consumer Protection.  This may include conditions that are specific to your premises, such as the placement and direction of security cameras on the exterior of the premises.
  • For certain types of modification, that the work must be done by a qualified person.

Further details will be decided through consultation in the coming months.

Is the tenant required to ‘make good’ at the end of the tenancy?

Yes. Unless otherwise agreed, the tenant will be required to either:

  • restore the property to the condition it was in immediately before the changes were made (allowing for fair wear); or 
  • pay an amount equal to the reasonable cost of restoring the property.

Why is the law changing to make it more difficult for landlords to refuse to have modifications made in their rental properties?

The rental sector is growing and more Western Australians are renting for longer and through different life stages.

An increasing number of WA tenants see their rental property as their long-term home. Allowing tenants to make small modifications to the rental premises helps them feel at home and allows them to stay for longer.

The types of modifications that tenants will be allowed to make will be minor, probably things like hanging picture hooks, installing a vegetable or herb garden or installing flyscreens. Landlords will be able to refuse consent for modifications in reasonable circumstances, such as where the modification would contravene strata rules.

Landlords will still be able to refuse consent for major modifications, such as those that affect the structural integrity of the premises.

Consumer Protection Commissioner decisions – likely to begin July 2024

Disputes over tenants’ rights to have a pet, make minor changes to a property and bond release payments will no longer have to go to court.

  • The Commissioner for Consumer Protection will hear from both sides and rule on these disputes as an independent authority. This process is known as ‘Commissioner Determination’.
  • Tenants, landlords and agents can make their case online.   

Will decisions by the Commissioner for Consumer Protection regarding bond disposals favour the tenant?

Decisions of the Commissioner for Consumer Protection will be transparent and based on evidence provided by the tenant and landlord. A written decision of the Commissioner for Consumer Protection will be provided to the landlord and tenants so they can read the reasons why the bond was disposed in a particular way.

If parties are not satisfied with a decision of the Commissioner for Consumer Protection, they can appeal it to the Magistrates Court. The Magistrates Court will then make an order.

Bond release – likely to start January–July 2025

A streamlined bond release process will be much simpler and prevent disputes from going to court.

  • A tenant, landlord or agent can ask for the release of the bond.
  • The Bond Administrator will notify all of the other parties about the application. If the parties agree, then the bond will be paid.
  • If the landlord and tenants do not agree, the Comissioner for Consumer Protection will hear from both sides and make a decision.

Will it be harder for landlords to retain the bond where there is rent owed or damage to the property?

The rules about when the landlord is entitled to the bond money will not change. If the tenant damages the property, or there is unpaid rent, the landlord may recover the debt from the bond.

Need advice

The Consumer Protection Contact Centre can walk you through the reforms and what they mean for you. Call 1300 30 40 54 or email

Subscribe to Consumer Protection tenant or industry bulletins for regular updates, including start dates for individual reforms. 

What to know more?

Download the WA Rent Reforms factsheets

WA Rent Reforms factsheet for tenants PDF 296.96KB
WA Rent Reforms factsheet for landlords and agents PDF 301.89KB
     

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