The second Phase of amendments to WA’s Residential Tenancies Act came into effect on 29 July 2024. It follows the introduction of the first Phase earlier in 2024. This Phase saw legal provisions instituted that enabled tenants who believed their landlord had engaged in retaliatory action against them for exercising their rights to “seek remedy or compensation from a court”. It also prohibited rent bidding.

In this blog, we’ll cover the WA tenancy law changes outlined in Phase Two and explore the impact on tenants and property owners.

New tenancy laws WA: Phase Two

Dispute resolution process

The new process seeks to streamline the resolution of tenancy disputes. Instead of going to court, tenants and owners will be invited to make a written submission to the Commissioner for Consumer Protection. This process allows each party to share their side of the story and any relevant evidence. The Commissioner will make a decision based on the information provided.

Depending on the complexity of the matter, the Commissioner may choose to refer it to the Magistrate’s Court. Both parties are also entitled to appeal the Commissioner’s decision, in which case the matter would also progress to the court system.

As of Phase Two, this process will be used to resolve disputes relating to pets and minor property modifications. When Phase Three comes into effect, it will also be used to resolve bond disputes.

Pets

Under Phase Two, tenants can keep a pet in most circumstances, though exceptions are noted below. Any damage caused by the pet will be paid for using the pet bond and will be the tenant’s responsibility.

What it means for owners

Once a tenant has submitted their pet application form, you’ll have 14 days to respond and may choose any of the following courses of action:

• Say no because the request is unlawful, in which case the tenant may contest this assertion and bring the matter to the Commissioner.
• Say no based on another factor, such as safety risk or the likelihood that the pet will cause costly damage to the property. In this case, the Commissioner will assess the merits of your argument and decide on an outcome.
• Say yes without any conditions.
• Say yes with conditions. If the tenant does not accept these conditions, the Commissioner may need to determine their validity.

What it means for tenants

If you wish to keep a pet or pets in your rental, you must submit a request using the approved form. The above section outlines the options landlords have when responding to your request. Essentially, if the landlord denies your request or agrees to it with conditions that you do not accept, you can appeal to the Commissioner. They will provide a determination or refer it to the Magistrate’s Court.

Minor modifications

The specifics of the Phase Two changes include a list of “minor modifications” that tenants can generally make to a property, such as adding flyscreens or wall-anchoring devices like TVs. For any changes made, tenants will be responsible for all associated costs, as well as for removing the modifications and restoring the property to its original condition at the end of their tenancy. The approval process is much the same as that used for pets.

What it means for owners

Once a tenant has submitted their request to make minor modifications to the property, you’ll have 14 days to respond and may act in any of the ways outlined:

• Say no because the request is unlawful, would lead to asbestos disturbance, or because the property is heritage listed. In this case, the tenant may contest this assertion and bring the matter to the Commissioner.
• Say no based on another factor, such as safety risk or the belief that removal or restoration after the fact would not be practicable. In this case, the Commissioner will assess the merits of your argument and decide on an outcome.
• Say yes without any conditions.
• Say yes with conditions. If the tenant does not accept these conditions, the Commissioner may need to determine their validity.

What it means for tenants

Before making any minor modifications to your rental, you must submit a request using the approved form. Landlords have several options when responding to your request, which are outlined above. Like pet requests, if the landlord denies your request or agrees to it with conditions you do not accept, you can appeal to the Commissioner. They will either provide a determination or refer the matter to the Magistrate’s Court.

Rent increases

The final element of the Phase Two changes is the capping of rental payment increases to once every 12 months rather than once every six months.

For fixed-term leases that began before the change took effect on 29 July 2024, six-monthly increases are still permitted until the current lease period expires. If the lease is renewed after 29 July 2024, another rental increase will not be allowed until 12 months after the previous one. If the lease is not renewed and a new lease is signed with new tenants, the owner may increase the rental price regardless of when the last increase occurred.

The new rules are applicable for periodic leases regardless of whether the lease was signed before or after 29 July 2024. This means that the agreed rental price on a periodic lease signed in May 2024 cannot be increased until May 2025.

Do you have any questions about the Phase Two WA tenancy law changes? We’re here to help. Get in touch with the Access Property Management team today.