Navigating Western Australia’s Residential Rent Reforms

The Residential Tenancies Amendment Act 2024 (WA) (Amendment Act) came into effect last year which included prohibitions on rent bidding and retaliatory action, limiting rent increases, and permitting pets and modification requests as discussed below.

Ban on Rent Bidding

Landlords are prevented from soliciting or inviting offers of rent higher than the advertised fixed rent for residential premises and are prohibited from advertising for other than a fixed amount.[1] There is a penalty of $10,000 for breach of this provision.

Limitation on Rent Increases

Rent increases are restricted to increasing rent only once every 12 months. The approved form must be provided to the tenant 60 days before the landlord’s proposed rent increase, which must include the amount of the increased rent and the day it will commence. If this is not followed, the tenant does not have to pay the rent increase.

For fixed-term tenancies, the rent can only be increased if the tenancy agreement specifies the amount or the method of calculating the increase, and the increase must be notified to the tenant at least 60 days in advance using the approved form. For periodic tenancies, the rent may be increased by giving the tenant at least 60 days’ written notice, but the increase cannot take effect within 12 months of the last increase or the commencement of the tenancy.

For agreements entered into before the commencement of the amendments, the previous provisions continue to apply until the end of the current term of the agreement.[2]

Protection Against Retaliatory Actions

Tenants now have the legal right to challenge retaliatory actions by landlords in Court.[3] Retaliatory actions are those by a landlord against a tenant in response to the tenant exercising their rights. For example, the lease was not renewed because the tenant made a complaint about the landlord visiting the property too often or the rent was increased significantly because the tenant asked for some basic maintenance or repairs.

The tenant may apply to the Court to review the landlord’s action. If the Court is satisfied the landlord’s action was likely retaliatory, the Court may make any order it considers appropriate, including setting aside the landlord’s action and ordering compensation for any loss or injury caused by the landlord’s action.

Streamlined Bond Release Process

A simplified bond release process has been introduced, allowing tenants and landlords to request bond release.[4] At the end of the lease, if the landlord and tenant agree on the disposal of the bond, they will jointly complete and sign a form on how the bond money should be divided, including to cover any costs the tenant may be liable for, such as property damage or outstanding water usage charges. The Bond Administrator cannot return the bond unless the form is completed correctly and signed by all parties.

If disputes arise, the Commissioner for Consumer Protection (Commissioner) will endeavour to adjudicate the dispute but ultimately if these disputes are not able to be resolved the parties must refer the dispute to a determination by a Court.

Pets and Minor Modification Requests

It is a term of every residential tenancy agreement a tenant may keep a pet at the premises, but only with the consent of the landlord.[5] The tenant must request consent[6] and if the landlord does not respond within 14 days, consent is automatically granted. The landlord can only refuse consent on specific grounds, such as the premises being unsuitable for the pet, the pet posing an unacceptable risk to health and safety or causing undue hardship to the landlord.[7] If a landlord wishes to refuse consent for any other reason, they must obtain the approval of the Commissioner. The Commissioner may approve the refusal if satisfied the premises are unsuitable for keeping the pet, such as a lack of fencing or open space or if keeping the pet would pose an unacceptable risk to health and safety.

Tenants may request to make minor modifications to the premises with the landlord’s consent.[8] The request must describe the proposed modification. The landlord must respond within 14 days, and if they do not, consent is automatically granted.[9] Again the landlord can only refuse consent on limited grounds, such as the modification disturbing asbestos, the premises being heritage-listed or the modification being contrary to a written law.[10] If the landlord wishes to impose conditions on the consent, they must apply to the Commissioner for approval.[11] Additionally, if a landlord wishes to refuse consent for any other reason, they may apply to the Commissioner for an order approving the refusal. The Commissioner will approve the refusal if satisfied the modification would cause undue hardship, be unsafe, result in additional maintenance costs or if removing the modification would be impractical or costly. Tenants are responsible for the costs and maintenance of the modifications and must restore the premises at the end of the tenancy, unless otherwise agreed with the landlord.

Landlords need to be aware of these changes to comply with the new legal requirements and avoid potential penalties. MPH Lawyers can provide legal advice on these changes, ensuring landlords are aware of their rights and obligations under the new legislation or to assist in interpretation or disputes.

This article is intended for informational purposes only and does not constitute legal advice.

For more information, please contact Evan Hillard (ehillard@mphlawyers.com.au) and Rochelle Bermudez (rbermudez@mphlawyers.com.au) from our Property team.

[1] Section 27AA of the Act.

[2] Section 99 and 100 of the Act.

[3] Sections 26A and 26B of the Act.

[4] Section 29 and Schedule 1 to the Act.

[5] Sections 50A and 50E of the Act.

[6] Section 50B of the Act.

[7] Section 50E of the Act.

[8] Sections 50N of the Act.

[9] Section 50O of the Act.

[10] Section 50Q of the Act.

[11] Section 50P of the Act.