Proposed Amendments to Residential Tenancies Act
In light of the recent announcement by the Western Australian State Government regarding proposed amendments to the Residential Tenancies Act, we wanted to personally reach out to you, with our thoughts and assure you that we are well-equipped to navigate these changes and ensure compliance while protecting your interests as landlords.
The primary goal of these proposed amendments is to strengthen protections for renters, provide greater clarity for landlords, and streamline bond returns and dispute resolution processes. Here are the key points you should consider:
Prohibiting Rent Bidding:
The practice of pressuring or encouraging tenants to offer more than the advertised rent, known as rent bidding, will be prohibited. We want to emphasise that Peak Central has never engaged in this practice. However, it’s important to acknowledge that market forces and high tenant demand during viewings can sometimes lead to higher offers being submitted.
Reduced Frequency of Rent Increases:
The proposed changes will reduce the frequency of rent increases to once every 12 months. This adjustment will impact property management companies that lack proper checks and balances. As your managing agent, we remain committed to maximising your return in a legal manner and will continue to do so. It’s worth noting that currently, depending on the terms of the lease, rent increases can occur a maximum of every six months.
Pet-Friendly Rentals:
In most cases, tenants will be allowed to keep pets in rental premises, although specific details are yet to be finalised. It will be essential to ensure that the pets are suitable for the property, and considerations such as increased pet bonds may be introduced. While landlords will retain the ability to refuse consent for a tenant to keep a pet, such refusal will require the consent of the Commissioner for Consumer Protection and should be reasonable. Landlords will also have the option to impose conditions on the keeping of pets.
Minor Modifications:
Tenants will have the ability to make certain minor modifications to the rental premises, and landlords will only be able to refuse consent on specific grounds. The updated legislation we hope will provide further details on these modifications, including potential make-good clauses in leases.
Streamlined Bond Processes:
The release of security bonds at the end of a tenancy will be streamlined, allowing tenants and landlords to apply separately to specify how bond payments should be disbursed. This streamlining aims to simplify the process and ensure efficient handling of bond payments.
Dispute Resolution:
Disputes related to bond payments, pets, and minor modifications will be referred to the Commissioner for Consumer Protection for determination. This impartial resolution process aims to provide a fair and efficient outcome for all parties involved.
Furthermore, please note that the proposed amendments do not address “without grounds” termination provisions in the Act at this time. We will continue to monitor any future updates and keep you informed.
Additionally, the State Government will be allocating funds over the next two financial years to tenancy advocates and community groups, providing advice and support to WA tenants. Rest assured that as professional property managers, we will handle all negotiations in accordance with the Residential Tenancy Act.
If you have any questions or concerns regarding these proposed amendments, please don’t hesitate to reach out to us. We are here to support you and ensure a smooth transition while protecting your investments.
