As seen in The West Real Estate

The State Government is reportedly set to ban no grounds terminations to prevent landlords evicting tenants from their homes.

Let me be very clear. A tenant cannot be evicted without legal grounds and due process.

If a tenant is being evicted there will be a reason, and the tenant will be aware of it. Before the tenant can be evicted there are specific processes which must be followed, and these are set in legislation. This includes allowing the tenant to rectify the situation and getting a court order if they don’t.

An eviction is very different to a no grounds termination.

The right to a no grounds termination does not give landlords the ability to evict tenants. All it does is allow them to not provide a reason should they choose to not continue with a periodic lease or not renew a fixed-term lease. 

Even though a reason does not have to be provided, the landlord is still legally required to follow proper processes, and the law provides a range of protections for tenants.

Should a landlord wish to end a periodic lease, they must give the tenant 60 days’ notice. Currently, it can be very difficult to find another home in this timeframe, and if the tenant is facing hardship, they can go to go court and request an extension.

A landlord cannot end a fixed-term lease before the end of the contracted period, unless the tenant agrees to do so. The tenant does not have to agree to the landlord’s request. They have a contract in place that allows them to live in the property for a set period of time. The landlord may try to contest this in court, but they are rarely successful.

A common concern is a landlord will end a lease because the tenant exercised their rights, such as asking for repairs or to have a pet. The last set of rental reforms extended protections for tenants against retaliatory behaviour. If a tenant believes a landlord is ending their periodic lease or not renewing their fixed-term lease because they exercised their rights, they can seek compensation or challenge the action in the Magistrates Court.

Retaining no grounds terminations is not about being pro-landlord or anti-tenant. It’s about striking a balance that will ensure the viability of the rental market. Regulatory changes that diminish investor confidence in being able to manage their asset will simply encourage more people to sell their investment property and discourage those who are considering investing. The resulting reduction in rental supply would harm the very people the State Government claims to be seeking to help with this change. 

Suzanne Brown
REIWA President