From picture hanging to keeping pets, WA's new rental laws explained

The WA government has changed the law governing landlords in the state.  (ABC News: David Hudspeth)

Renters in WA will soon be allowed to keep a pet, hang a painting, and only have their rent raised a maximum of once a year — but they will still be at risk of being evicted for no reason.

The latest data from March shows rental vacancy in Perth sitting at just 0.4 per cent, according to the Real Estate Institute of WA (REIWA) — a far cry from what’s generally considered a healthy vacancy rate of 2.5 to 3.5 per cent.

Part of the issue is the influx of people into WA, with an estimated 220 people entering each day, according to housing minister John Carey.

Rental tenancy reform laws have just passed through WA parliament and are scheduled to be rolled out about mid-year.

“These reforms do provide greater protection to renters in this very tight market,” Mr Carey said.

So what are the changes, and how will they affect renters and landlords?

Rent increases and rent bidding

Under existing laws, landlords can increase rent once every six months. Under the new laws, landlords will only be able to increase rent once a year.

Perth’s median rental price is sitting at $650 per week.

For comparison, it was sitting at $550 per week this time last year, and $480 per week in 2022, according to REIWA data.

Part of this rising trend has been attributed to “rent bidding”, where prospective renters offer more than the asking price to try and snag one of the rare available rentals.

This practice has been outlawed across Australia, except for WA. That is, until the new laws come into effect.

Under the new rules, it will become illegal for property managers and landlords to encourage renters to offer more than the advertised price.

This means landlords won’t be able to ask you to offer more rent in order to out-bid other potential tenants.

Making your house a home

If you’re a tenant who likes to take a few liberties with decorating, or altering, parts of your rental, you’re in luck.

Currently, simple modifications like hanging a painting or changing a shower head technically require the landlord’s permission.

However, the new laws will allow renters to make small modifications. For example, installing a vegetable garden or a fly screen, and yes, hanging your art.

Of course, if you’ve left nail holes in the walls you’ll be responsible for fixing that up, as tenants will still be required to restore the premises to its original condition.

Exactly what is, and isn’t, a “small modification” is still being worked out.

Landlords will also no longer be allowed to refuse a tenant for keeping a pet in most circumstances. But renters will still be responsible for fixing any damage caused by their pets, and cleaning up after them.

Tenants will still have to abide by strata by-laws, and landlords will be able to refuse pets under specific conditions, or with the approval of the Consumer Protection Commissioner.

The new laws will also bring in measures to streamline the process for renters getting their bonds back at the end of a tenancy.

Any disputes relating to bonds, pets, and minor modifications will be determined by Consumer Protection.

That means you likely won’t have to go to court anymore if no one wants to claim credit for a mysterious stain, some scratched up floor, or other small disputes.

The caveats

The big catch with all of these changes is no-grounds evictions will still be allowed in Western Australia.

This is when a tenant hasn’t breached any lease conditions, but the landlord wants to kick them out.

The landlord doesn’t have to provide any reason, and can kick a fixed-term tenant out with 30 days notice, and 60 days notice for a periodic tenant who has no pre-determined end date to their lease.

Commerce Minister Sue Ellery said tenants who believe they’ve been wrongfully evicted — for example for having a pet when they’re allowed to — should dispute it with Consumer Protection, or challenge it in the Magistrate’s Court.

“If indeed a landlord takes retaliatory action against someone trying to exercise their rights, all of those things go to adjusting the balance to protect renters,” she said.

Mixed reception

Rental advocacy groups have welcomed the reforms and say it will provide some relief to the 700,000 renters in WA.

WA Council of Social Service CEO and Make Renting Fair Alliance spokesperson Louise Giolitto said the changes would make a “real difference” to tenants.

“The requirements for fixed advertised pricing, and the ban on agents soliciting bids will provide welcome certainty, particularly when considering the spiralling cost of living,” she said.

However, Ms Giolitto said the state government should have also banned no-grounds evictions.

“Tenants aren’t likely to act or take things to a dispute resolution if they’re being treated unfairly knowing they could be evicted,” she said.

“That’s an absolute foundational piece to the rest of the reform.

“The other reforms lose some of their gravitas without it.”

Greens MP Brad Pettitt supported the calls, and said the reforms did little to support renters and address the ongoing housing crisis.

“Limiting rent increases to once per year simply mean struggling renters will be slugged with a massive increase in one go,” he said.

“Doing nothing to reform no-grounds evictions from private rentals or public housing is a complete betrayal of WA renters.”

‘Think of the landlords’: Liberals

But Liberal MP Neil Thomson said the rental reforms unfairly took power away from landlords, discouraged property investors, and would ultimately contribute further to the housing crisis.

“[The legislation] simply makes it harder for those mums and dads, investors, who own properties which they rent, it simply makes it harder to protect their assets,” he said.

“It’s just going to encourage more people to look at other forms of investment at a time that Western Australia can least afford it.”

WA and the Northern Territory allow no-grounds evictions for both fixed and periodic-term tenants.

New South Wales has flagged changes to ban no-grounds evictions for periodic tenants.

Queensland and Tasmania have already barred periodic tenants from being evicted for no reason.

Victoria, South Australia, and the Australian Capital Territory have banned no-grounds evictions completely.