The rental reforms in Perth are being implemented as the city is currently facing the tightest rental market in the country. Landlords in West Australia (WA) signing leases after July 29 will now be limited to raising rents once a year under the new state rental reforms. Existing contracts finalized before July 29 will still allow for six monthly rent increases until the lease term ends.
One of the key changes includes renters being allowed to keep pets and make minor modifications, such as hanging pictures on walls or installing a fly screen, unless exceptional circumstances prevent it. Disputes regarding pets and minor modifications will now be handled by the Commissioner for Consumer Protection.
WA Commerce Minister Sue Ellery believes that these changes will make rental properties feel more like home for tenants. The reforms, which were passed in state parliament in April, are being rolled out in stages, with the first phase involving the ban on rent bidding.
Perth currently has the lowest vacancy rate in the country at 0.4 percent, indicating the severity of its tight rental market. According to the Real Estate Institute of WA (REIWA), the city saw a significant increase in median weekly rent prices for both three-bedroom houses and two-bedroom dwellings over the past year.
Despite the record-high rents, Perth remains one of the more affordable capital cities in Australia, with rent prices requiring only 23 percent of the median weekly income. REIWA CEO Cath Hart expects rent prices to continue growing in 2024, although the rate of growth is projected to slow down.
In the regional town of Broome, located over 1,600 kilometers north of Perth, median rent prices have also surged, with a significant increase in rent for two-bedroom dwellings over the past year.
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