After many months of engagement and advocacy, the WA Parliament has passed the Residential Tenancies Amendment Act 2024.
Thank you to our members, particularly REIWA’s Property Management Committee, for your tireless input and feedback on how to make the changes workable for industry.
While the Act has been passed, the changes won’t come into effect immediately. We are expecting this to happen in three phases.
Phase One
Phase One includes the ban on rent bidding and provisions regarding retaliatory action, and is scheduled to come into effect in May.
Rent bidding
Owners and property managers will be banned from asking for more than the advertised rent. In addition, you must list the property for rent at a single price, not a range or a ‘from’ price. Tenants can still voluntarily offer to pay more than the advertised price, and this will not constitute rent bidding.
Retaliatory Action
The tenant will be able to seek remedy or compensation from a court if they believe the owner has taken retaliatory action after they exercised their rights as a tenant.
Phase Two
Limiting rent increases, pets, minor modification and changes to the dispute resolution process are in Phase Two and are expected in mid-2024.
In regard to limiting rent increases to once every 12 months, many members raised concerns that the transitional provisions that would enable existing six-monthly rent increases already written into fixed-term leases to be honoured, specifically excluded lease renewals or extensions.
We raised this with DEMIRS, noting if landlords realised that a renewal with the same tenants would not be able to have a six-monthly rent increase, but a new lease with new tenants could, then some might decide not to renew a lease with existing tenants and to seek new tenants instead. In addition, if this provision was not amended, it would create significant issues for landlords and property managers who were of the understanding that six-monthly rent increases, as agreed to in the lease, would be able to proceed.
Following REIWA’s advocacy, Minister for Planning, Lands, Housing and Homelessness John Carey moved an amendment to the Residential Amendment Bill on 21 February 2024, to ensure that six-monthly rent increases agreed to in fixed term leases prior to the new provisions coming into effect would be honoured in all cases. The Bill was amended and six-monthly rent increases in all fixed-term lease agreements signed before the new legislation comes into effect will be able to proceed.
There are still many details, such as those regarding modifications, that have to be prescribed by Regulations and we will continue to engage both with our members and the Government to ensure your voice is heard on these important, unresolved matters.
Phase Three
This phase includes the changes to the bond disposal process and is expected in 2025.
We will be updating our Facts of the Act. Flyers summarising the new laws for you to share with your tenants and owners are available on the Advocacy page on the REIWA members’ website.
Thank you once again for your input and insight into the RTA reform process. Your ongoing feedback continues to help us maintain our place “at the table” with Government so that we’re able to make recommendations on how to develop practical policy that doesn’t discourage investors from the WA residential market.
If you have any questions regarding the Bill, please contact myself or REIWA Executive Manager of Policy and Advocacy Tim Lane.
Cath Hart
CEO
