Navigating WA's New Tenancy Reforms: What Landlords Need to Know

The Western Australian rental market is evolving with new tenancy reform laws that protect renters while balancing the interests of landlords and investors. Here's a clear and engaging overview of these changes and their impact on your investment properties.

Key Changes in the New Rental Laws

Rent Increases:

• Past Practice: Rent can be increased every six months.
• New Law: Rent increases will be limited to once a year.
• Impact: Renters gain more stability and predictability, aligning WA with other Australian states.

Prohibition of Rent Bidding:

• Past Practice: Landlords can advertise or list the rental property for a rent with a 'from' price and prospective tenants can bid for the highest offer.
• New Law: Rent bidding is prohibited. Landlords or their agents must not encourage a potential tenant to offer to pay more than the advertised rent amount. However, they can accept above the advertised rate if freely offered by the prospective tenant.
• Impact: Aims to create a fairer rental market and prevent inflated rental prices.

Allowing Pets:

• Past Practice: Landlords can refuse tenants with pets.
• New Law: Tenants can generally keep pets, with landlords needing a valid reason to refuse. Landlords can impose reasonable conditions such as professional cleaning.
• Impact: Rentals become more accessible to pet owners, increasing your tenant pool. Address concerns about potential property damage in lease agreements.

Minor Modifications:

• Past Practice: Tenants need landlord approval for small modifications like hanging pictures.
• New Law: Tenants can make minor modifications without landlord consent, provided they restore the property to its original condition when moving out.
• Impact: Tenants can personalise their living space, potentially leading to longer tenancies and reducing administrative burdens for landlords.

Bond Release:

• New Law: Streamlines the bond release process, allowing disputes to be resolved by the Consumer Protection Commissioner.
• Impact: Simplifies and speeds up the bond return process, reducing potential disputes and costs.

No-Grounds Evictions:

• Past Practice: Landlords can evict tenants without providing a reason.
• New Law: No immediate change; no-grounds evictions are still permitted.
• Impact: WA maintains flexibility for landlords, though it's a contentious point for tenant advocacy groups.

These rental reforms aim to enhance tenant rights and create a more stable rental market. While they require adjustments from landlords and investors, they also present an opportunity to build stronger relationships with tenants. By understanding and adapting to these new regulations, investors can continue to thrive in WA’s dynamic real estate market.

Why Now Could Be the Perfect Time to Sell Your Investment Property

With Perth's current property price boom and high demand for homes, now is an ideal time for investors to consider selling their investment properties.

The rental market's increasing complexity and new regulations may introduce additional costs and responsibilities that could affect profitability. By selling now, investors can capitalise on high property values, avoid future regulatory challenges, and reinvest in opportunities offering better returns and fewer complications.

At Noble Avenue Real Estate, we are here to guide you through this dynamic market and help you maximise your returns. Contact us today to explore your options and discuss the market in your area.

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