More changes are on the horizon for the rental market in Western Australia. On July 29, Phase 2 of the Residential Tenancies Act (RTA) reforms will come into effect, bringing significant updates aimed at benefiting both landlords and tenants. At Adaptive Settlements, we are committed to keeping you informed about these important changes.
Key Reforms:
12-Month Limit on Rent Increases
One of the most impactful changes is the introduction of a 12-month limit on rent increases. Starting from July 29, rent for periodic tenancies can only be increased once every 12 months. This rule will apply immediately, invalidating any 60-day notices already issued. For fixed-term tenancies, the new limit will take effect after the current lease term ends. Existing six-month rent reviews in leases signed before July 29 will still be valid.
Dispute Resolution Process
Disputes regarding minor modifications and pets will now be handled by the Commissioner for Consumer Protection. A dedicated team has been established to ensure timely resolutions. Decisions can be appealed to the Magistrates Court within seven days, and the Commissioner has the discretion to refer cases directly to the court.
Pets
Landlords can set reasonable conditions for keeping pets, some of which may require the Commissioner’s approval. Conditions not requiring approval include limits on the number of animals and specific maintenance requirements. More restrictive conditions, such as keeping a pet outdoors or out of common areas, do require approval.
Landlords can refuse pets if they violate laws or pose risks to health, safety, or property. They must apply to the Commissioner to object on these grounds. Tenants remain responsible for any nuisance or damage caused by their pets, which is not considered fair wear and tear.
Minor Modifications
The legislation outlines permissible minor modifications, such as installing picture hooks, water-efficient shower heads, and security devices. Some modifications, like painting a room or installing hardwired security systems, may require professional installation and proof of work.
Landlords can refuse modifications if prohibited by laws, by-laws, or if the property is heritage listed, without needing Commissioner approval. Other objections, such as safety concerns or undue hardship, will require approval.
Tenants are responsible for the costs of making, maintaining, and restoring modifications at the end of the tenancy.
The upcoming Phase 2 RTA reforms represent a significant step forward in balancing the needs and rights of tenants and landlords. At Adaptive Settlements, we’re committed to keeping property investors and landlords up-to-date regarding their rental property.
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