As we step into the new era of property management in Western Australia, significant changes are on the horizon, impacting property investors and landlords in Perth who have both short-term and long-term rental accommodations.
As a settlement agent, it’s crucial to stay informed about these developments to assist property investors and landlords in navigating the evolving landscape effectively.
Short-Term Rental Accommodation (STRA) Registration
Recent legislation passed by the WA government mandates that all short-term rental accommodations must be registered by 1 January 2025. This includes both hosted and unhosted properties.
The Real Estate Institute of Western Australia (REIWA) has expressed support for this initiative, recognising its potential to provide valuable insights into the STRA market.
However, concerns have been raised regarding unauthorised subletting and contravention of strata by-laws. While registrants will be required to declare ownership or lease of the property, there's no obligation to demonstrate authorisation for short-stay accommodation.
Nonetheless, safeguards are in place, with the Commissioner for Consumer Protection empowered to cancel registrations violating strata by-laws. The registration process commences on 1 July 2024.
Implications for Unhosted STRA
In the Perth metropolitan area, unhosted STRA leased for over 90 days within a 12-month period will necessitate development approval from local governments. Regional areas, including Peel, will follow local government determinations regarding planning approval. Hosted STRA, however, are exempt from this requirement. Notably, there's no cap on the number of nights a property can be let, providing flexibility for property owners.
Residential Rental Reforms
The Residential Tenancies Amendment Bill 2024, passed by the WA Parliament, heralds changes in the rental market, implemented in phases.
Phase One, effective soon, prohibits rent bidding and mandates single-price listings for rental properties. Tenants retain the option to offer voluntary additional rent. Moreover, provisions empower tenants to seek recourse if retaliatory actions are taken by landlords post-exercising their rights.
Phase Two and Beyond
Phase Two, anticipated to roll out in mid-2024, introduces limitations on rent increases, provisions for pets and minor modifications, and changes to dispute resolution processes. Rent increases will be restricted to once annually for new leases, with existing lease agreements honoured until their conclusion. The subsequent phase, expected in 2025, will focus on modifications to the bond disposal process.
Adapting to Change
These reforms underscore the evolving nature of property management in WA, necessitating proactive adaptation by investors and landlords. As a settlement agent, it's imperative to stay abreast of these developments and offer guidance to clients, ensuring compliance with regulatory changes and maximising the potential of their property investments.
In conclusion, while these reforms bring challenges, they also present opportunities for a more transparent and equitable rental market in Western Australia. By understanding and embracing these changes, property investors and landlords can navigate the evolving landscape with confidence.
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