The second tranche of changes to the Residential Tenancies Act are to be activated on 29th July. There are four major reforms that will impact the way residential tenancies are conducted from that date.
Firstly, rents can only be raised every twelve months, replacing the existing laws that enabled rent increases every six months. For existing periodic tenancies, the minimum 12-month period between rent increases will apply from 29th July regardless of when the lease agreement commenced. For fixed term leases signed prior to 29th July, the minimum 12 month increase period applies once the current fixed term ends.
The second major change is tenants will be able to make minor modifications to their rental home without the consent of the owner. Importantly, permission must first be sought from the owner, but if the modification is minor and reasonable, the owner must allow it. Minor modifications include installing of picture hooks, shelving, tv brackets, blinds or curtains, flyscreens and the like. The tenant is required to make good any modifications at the end of the lease unless the owner agrees otherwise and there are some sensible limitations that apply.
Thirdly, the Commissioner of Consumer Protection will be able to resolve disputes on matters relating to the next tranche of changes to the Act along with bond disputes, rather than the matter being lodged at the local court. The tenant or the owner can initiate the release of the bond from the Administrator from 29th July and if the dispute remains unresolved, the tenant or owner can apply to the local court thereafter.
The final change taking affect from 29th July welcomes pets to tenancies. Tenants must still ask permission to keep a pet, but the landlord cannot unreasonably refuse. Landlords can object to the keeping of a pet at their property if the strata by-laws prevent it or can prove a ‘good reason’ such as health reasons (pet allergy if the owner wishes to move back into the property in future), insufficient fencing and the like. An additional bond is payable and reasonable conditions imposed such as mandating carpet cleaning at tenancy end.
Most of these changes bring WA into line with other states and there may be some early challenges with their implementation, but overall, none of these reforms are likely to negatively impact housing supply, especially in a rising market. Property owners may have to deal with future issues that arise from the changes, particularly around the pet allowance and minor modifications as
more costly damage to property may occur from these aspects
Tenants will need to remain mindful of their underlying obligations to return their rental home to the owner in the condition in which they found it - aside from fair wear and tear.