Update on legislation changes and incentives from the WA Government
Legislation changes
The first changes to rental laws have come into effect as of 16/05/2024, which are detailed below:
- Rent bidding ban. Advertising must be at a set amount, and landlords/agents must not encourage applicants to offer more.
- Retaliatory action. Tenants are now able to seek remedy from the court if they believe their landlord has taken retaliatory action against them after exercising their rental rights. Examples include deliberately increasing the rent or not renewing a lease because the tenant asked for basic maintenance to be completed.
The second round of changes are due to come into effect in July and include the below changes:
- Rent increases to now be every 12 months
- Pets are now welcome
- Home sweet home – certain minor modifications allowed
- Consumer protection commissioner decisions.
More information on the upcoming changes can be found at: WA Rent Reforms | Department of Energy, Mines, Industry Regulation and Safety (commerce.wa.gov.au)
Vacant Rental Scheme
The WA Government has recently announced a great incentive of $5000 to convert vacant properties to long term rentals. The payment will be offered to property owners willing to provide a minimum 12 month lease agreement to new long term tenants. This incentive aims to boost supply in Perth’s market, which has seen a high level of demand over the last few years. According to REIWA, the vacancy rate was 0.4% for March 2024.
To be eligible:
- Your property needs to have been vacant for 6 months (between 8/11/23 and 7/5/24)
- Is a self contained property with its own bathroom, kitchen and toilet (granny flats/spare rooms are not eligible)
- The property has not received an incentive under the Short Term Rental Incentive Scheme.
Short Term Rental Incentive Scheme
It is not the first time the government has offered incentives to assist with supply, with the Short Term Rental Incentive Scheme announced in November 2023. A grant of $10,000 was offered for owners who switched from short stay and opted for a 12 month lease agreement. According to REIWA CEO Cath Hart, there has already been 150 rental homes that have converted from short term to long term since the scheme was announced.
To be eligible:
- Your property needs to be advertised/occupied as a short term rental between 28/09/23 and 09/11/2024
- You own a single self contained property (house/flat/unit).
- You transition to from short to long term by 08/11/2024
- Your long term tenancy must be for 12 months and rent is charged at or below the maximum rent for the property location (table available online)
- You have an Australian bank account for the payments to be made to.