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WA landlords say goodbye to no-fault evictions
The Western Australian government has proposed reforms to the state’s Residential Tenancies Act 1987, headlined by the removal of no-grounds termination.
Under the current legislation, landlords can end periodic tenancies with 60 days’ notice or fixed-term tenancies at the end of the term with 30 days' notice.
Under the reformed legislation, landlords would need fair grounds to terminate a tenancy, with additional grounds added, such as having the owner or a relative occupy the premises, renovation, or repeated tenant breaches.
Additionally, other proposed reforms include introducing clear standards for rental properties and placing restrictions on the types of information that can be requested from prospective tenants.
The reforms would also require property managers to offer renters at least one payment method that does not incur an additional fee.
Premier Roger Cook said the reforms would bring Western Australian tenancy laws in line with those of other states and provide tenants with greater stability.
“Ending no-grounds terminations and replacing them with common sense reasons for landlords makes Western Australia's rental market fairer,” Cook said.
Real Estate Institute of Western Australia president Suzanne Brown cautioned that there would be no long-term winners from the reforms.
“Across the state, the rental market has not fully recovered from the mass exodus of investors post-COVID-19,” Brown said.
“Western Australia cannot afford to lose any more rental properties. Another drop in supply will see the vacancy rate fall, competition for available properties increase and even more upward pressure on rents.”
While landlords could currently choose not to renew tenancies at the end of their fixed term, Brown said the proposed reforms would likely result in more breach notices being issued to tenants.
She said that the current process has been less costly for all parties and wouldn’t leave a mark on a tenant's rental history, which could impact their ability to secure accommodation in the future.
“The removal of no grounds terminations would lead to a significant increase in the number of breach notices issued and subsequent court hearings required, as this would become the only means of removing problematic tenants.”
“Rent prices are likely to rise in response to the increase in risks and costs to investors.”
“Ultimately, this reform will introduce more cost to the system that will be borne by investors, taxpayers and tenants,” Brown concluded.
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