The changes will see a ban on encouraged rent “bidding”, and rental increases will be limited to one per year.
WA’s 700,000 renters will also be empowered to make minor modifications, such as painting an internal wall, while an overhaul on the bond system means the release of funds will be triggered as soon as a departing member requests them.
“The changes are supported by ourselves and will enhance tenancy experiences in a bespoke manner,” said Mr Percudani.
“In many instances, smart investors are already doing these things to ensure they attract and retain quality tenants in their investment.
“Well informed property managers will be addressing these matters already, but these changes will encourage and advance this intersection between a property owner’s and a property tenant’s interests in an equitable manner.”
Consumer Protection is set to replace the Magistrate’s Court as the primary channel for tenancy disputes in an effort to set and maintain consistent industry precedents.
From an investor perspective, no grounds evictions will remain in place – a decision welcomed by Realmark - and there will be no cap on the size of increases.
“Government intervention in the property market needs to be cautiously applied as it often has a distorting effect on the market dynamics,” said Mr Percudani.
“Professional investors will not be discouraged by these changes as they are more than likely already addressing the matters. Investors are more focused on investment yield, asset protection and capital growth.”
Emma Thorpe, Realmark Urban’s associate director of residential property management and BD, agrees.
“I believe the planned changes reinforce the importance of aligning with an agent or property manager who will ensure any risk is mitigated at the final inspection,” said Ms Thorpe.
“At Realmark, finding the highest quality tenant for a property is the priority as it alleviates any perceived issues for landlords surrounding minor modification of a property, or even pet ownership.”
Mr Percudani believes the planned reforms reflect a balanced approach to the WA rental market, which is in a different context to the east coast capital cities.
“The main issue all parties need to focus on in WA is supply - healthy supply of various housing types will ensure a healthy and sustainable property market for tenants and own occupiers alike. This underlying housing issue requires focused attention in the metro and regional WA markets.”
For further information, please reach out to Emma Thorpe by calling Realmark Urban on (08) 9388 3911, or directly avia ethorpe@realmark.com.au.