Markets 
Updated ,first published
No-grounds evictions will be banned and clearer standards for rental properties have been revealed as part of a suite of reforms, bringing Western Australia in line with most other states and territories.
But the state’s peak real estate body has said it is “deeply concerned” about the announcement, and cautioned anyone viewing the changes as a victory about the long-term implications.
The Cook government announced the major changes on Monday, which align with what many in the housing sector have spent years calling for in a bid to improve housing security.
The changes are aimed at delivering a fairer system that balances the rights of both landlords and tenants.
Landlords will still be able to terminate a tenancy with additional grounds added to the existing list of reasonable grounds.
Those will include the owner or relative needing to occupy the premises, the property needing to be significantly renovated or demolished, or repeated serious breaches by the tenant.
The existing grounds for eviction include the sale of the property with vacant possession, non-payment of rent, and damage or illegal activity.
Other major reforms include the introduction of clear standards for rental properties.
There are also proposed reforms to restrict the types of information landlords, agents or third parties can request from prospective tenants.
The Department of Local Government, Industry Regulation and Safety will consult on the detail of these reforms during the drafting process.
But Real Estate Institute WA president Suzanne Brown said the announcement would have no winners.
“Our objection to the removal of no grounds terminations should not be seen as being anti-tenant or pro-landlord – it’s about ensuring the viability of WA’s rental market,” she said.
“Across the state, the rental market has not fully recovered from the mass exodus of investors post-COVID.
“WA cannot afford to lose any more rental properties. Another drop in supply will see the vacancy rate fall, competition for available properties increase, and even more upward pressure on rent prices.”
Brown said the reform would raise a red flag for investors, who were also facing changes to the capital gains tax discount and negative gearing by the federal government.
“Many REIWA members are already reporting an increase in sales by investors and investor appraisals. Every rental property lost is a blow to tenants and rental affordability,” she said.
“In a delicately balanced market, this reform will do more harm than good and ultimately hurt tenants through fewer options and higher rent prices.
“Even if there was no decline in supply, this reform will increase investors’ risk and costs, which in turn will be detrimental to tenants.
“Rent prices are likely to rise in response to the increase in risks and costs to investors.”
Regarding the remaining potential reforms, Brown said REIWA was broadly in favour of minimum standards for rental properties, along with clarifying the information tenants could be asked to provide and what owners and property managers were required to provide tenants.
The Greens WA housing spokesperson Tim Clifford said he thought REIWA’s position on no-grounds evictions was “absolutely ridiculous” and that “it was clear they were struggling to justify their position”.
“Banning no-grounds evictions will have no impact on supply; it is a laughable proposition,” he said.
“There is no evidence, from any other state that has made this change, that scrapping no-grounds evictions has an impact on rental vacancies.
“Just because a property investor decides to sell their property does not mean that house miraculously disappears. It is either sold to someone else to house them, or returned to the private rental market to house someone else.”
He said scrapping no-grounds evictions was a huge step forward in improving rights for renters and was a change “that has taken far too long”.
But he said it was disappointing there were still no commitment to capping rent increases.
“For so many WA families, paying their rent is the single biggest expense in their weekly budget and it is still going up,” Clifford said.
“Banning no grounds evictions will give tenants some security to ask for repairs and maintenance to be carried out but at the end of the day, they can still be evicted via an unaffordable rent increase.”
As part of this year’s state budget, the state government will also be extending the Rent Relief program as part of a $13.5 million boost.
Up to $5000 is available for people who are behind in rent and facing severe financial hardship through cost of living, rising rents or other pressures.
Premier Roger Cook said ending no-grounds terminations and replacing them with common-sense reasons for landlords would make WA’s rental market fairer.
Housing and Works Minister John Carey said the announcement built on the government’s first tranche of reforms, which included limiting rent increases to once a year and banning rent bidding.
“These further reforms continue our staged and carefully considered modernisation of tenancy laws, improving standards and ending no-grounds evictions,” he said.
Get the day’s breaking news, entertainment ideas and a long read to enjoy. Sign up to receive our Evening Edition newsletter.
Holly Thompson is a journalist with WAtoday, specialising in education and the environment.Connect via X or email.From our partners
Read the full article here
