Executive Summary
The Residential Tenancies Act 1987 (WA) (RTA) is the law that regulates the legal relationship between tenants and lessors in Western Australia (WA).
The Department of Local Government, Industry Regulation and Safety (LGIRS) – Consumer Protection Division (Consumer Protection) administers the RTA and provides a range of regulatory services in support of the Act.
The rental sector in WA has experienced significant change in recent years, with people renting for longer and, in many cases, renting for life. Consumer Protection is undertaking a review of the RTA to make sure it meets the needs of this changing rental market.
The review commenced in 2019 with the release of a Consultation Regulatory Impact Statement (CRIS) for public comment. The CRIS examined a number of issues across the lifecycle of a tenancy and outlined options for reform.
A Decision Regulatory Impact Statement (DRIS 1) was published in May 2023 outlining recommendations for the first phase of proposed reforms arising out of the review. This Decision Regulatory Impact Statement (DRIS 2) outlines recommendations for the second phase of proposed reforms.
The key proposals for reform include:
- establishing minimum standards for rental premises;
- regulating the boarding and lodging sector;
- introducing measures to improve tenant protections during the tenancy application process and increase the types of information that the lessor must disclose prior to the tenancy;
- expanding the circumstances in which lessors may terminate tenancies, including for eligibility-related grounds;
- giving tenants greater freedoms to terminate a fixed term tenancy in certain circumstances and including a break lease fee in fixed term agreements;
- strengthening the rights of sub-tenants and co-tenants;
- giving lessors greater freedom to determine how to dispose of abandoned goods in rental premises; and
- a number of other minor reforms including removing the lessor’s ability to charge option fees and strengthening tenant protections regarding swimming pool barrier fencing.
It is acknowledged that changes to the legislation will impact on a number of groups, including lessors, tenants and state government agencies.
However, stakeholder feedback on the operation of the RTA suggests that the current mechanisms in place to regulate residential tenancy agreements are not adequate in some areas. The recommendations respond to these challenges while seeking to minimise the potential cost burden on lessors.