By Claudia Reedy, Paralegal
For the first time in over a decade, Western Australia (WA) has made significant amendments to its Residential Tenancy Act (1987). Effective from 29 July this year, these changes seek to address increased demands for tenant security, supply shortages and rising rents across the WA housing market.
Regulating Rental Payments
Prohibition on Rental Bidding: The amendments introduce a prohibition on ‘rent bidding’ practices. Landlords and their agents are now required to advertise properties for a fixed rental price, rather than offering a price ‘range’. In addition, landlords and their agents cannot engage in conduct that constitutes the solicitation of rent bidding. This broadly includes any circumstances where a landlord or their agent ‘invites’ prospective tenants to offer more than the advertised price.
Limitation on Rent Increases: Under these changes, rent increases are also capped to once every 12 months. This presently applies to all periodic rental agreements and fixed term rental agreements signed on or after 29 July 2024. For fixed term agreements signed prior to 29 July 2024, the minimum 12-month time frame between rent increases will apply once the current fixed term concludes.
Tenants’ Rights
Pets: The amendments also enhance tenant rights regarding pet ownership. While tenants are still required to obtain their landlord’s permission to keep pets, the circumstances where a landlord can withhold this consent are restricted. In most circumstances, a landlord can only refuse consent if they have ‘reasonable grounds’ and obtain approval from the Commissioner for Consumer Protection. While landlords can impose ‘reasonable conditions’ on the keeping of pets, the imposition of these conditions is likewise subject to the Commissioner’s approval.
Minor Modifications: Tenants now have the right to make ‘minor modifications’ to their leased premises. While tenants must notify their landlord of an intention to make any ‘minor modifications’, landlords can only withhold consent in prescribed circumstances or with the approval of the Commissioner for Consumer Protection. Landlords can impose ‘reasonable conditions’ on these modifications, but again these conditions are subject to the Commissioner’s approval. Notably, the amended legislation does not precisely define what will constitute a ‘minor modification’. However, it has been suggested a range of non-structural changes such as hanging pictures or cultivating a vegetable garden could fall within this definition.
Application to strata schemes
Limitations Imposed by Strata Scheme By-Laws: A significant caveat to the above liberties afforded to tenants is the applicability to strata schemes. If the keeping of pets or making of a ‘minor modification’ will contravene applicable by-laws, landlords may withhold their consent without making an application to the Commissioner for Consumer Protection. Further, these amendments do not bar the creation of strata scheme by-laws that may prevent the making of minor modifications or the keeping of pets.
