WA WA state COVID-19 residential tenancies legislation

Discussion in 'Property Management' started by richerdad, 15th Apr, 2020.

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  1. thydzik

    thydzik Well-Known Member

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    thanks for posting.

    the only saving grace is the tenant needs to be in financial hardship (not just say they are like previously), but not sure how that gets proven to the landlord.
     
  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Not happy Jan. I had two renewals where I wanted to increase the rent by a modest $10pw to gain back some of the rent decreases that have happened in 2018/2019 and now we can't until April next year
     
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  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    I must say I am a little perplexed as to why they felt the need to extent the moratorium in WA

    How much community transmission do you have in WA ? None?
     
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  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Whilst there is still some jobs/industries in pain here I would have thought it didn't really warrant the extension of the moratorium or maybe just leave it at not being able to evict for covid related hardship.
     
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  5. Scaphella

    Scaphella Well-Known Member

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    Bit of a joke being unable to rise rent considering the market is already one of the most affordable in the country and as a state we have experienced 5 years of offering dirt cheap rent. If a tenant hasn’t been affected by covid then whatevz :confused:
     
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  6. FrivolousPanda

    FrivolousPanda Well-Known Member

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    If the fixed term lease is ending, are landlords allowed increase the rent for the new fixed term lease? Or do landlords have to offer periodic after a fixed term lease ends, in which case the rent has to be the same?

    My interpretation was landlords can't increase the rent during a fixed term lease or during periodic lease.
     
  7. Rex

    Rex Well-Known Member

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    So basically these "emergency" laws have morphed from being about protecting those in financial hardship, to be a way to control rental affordability in the lead up to the March 2021 election. There is no Covid spread in WA and has not been for over four months but the government figures it doesn't need a bunch of headlines and tenancy lobbies squawking about families copping 10 - 20% rent increases in the lead up to the election.

    A continuation of this government's flawless record of shafting property owners.
     
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  8. thydzik

    thydzik Well-Known Member

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  9. smallbuyer

    smallbuyer Well-Known Member

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    "
    If the tenant participates in conciliation and you reach agreement, you will receive the rent due, and no further action is needed."

    So the govt will guarantee payment??
     
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  10. Jarrad Mahon

    Jarrad Mahon Active Member

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    It was certainly a big surprise that the emergency period was extended- we had over 200 rental increases issued with most at a 10% to 20% increase and all needed to be retracted. Very annoying they did t give us more notice as it would have saved a lot of work!

    Hopefully the government will make some adjustments before then... You can support the REIWA Campaign to give landlords a fair go - click here. Every voice can help!

    Now to my 2 cents worth to hopefully clarify a few things...

    A lease can either be renewed or let to go on periodic but either way the rent cannot be increased during the emergency period which now runs to 28/3/2021.

    Unless planning to sell in the next few months its probably best to renew your lease because there can be other landlord insurance implications when on periodic.

    You could either renew the lease till 29/3/20 and then negotiate a new lease to commence at the increased market rate.

    Or as we are doing in many cases- you could renew the lease now and insert a rent review clause allowing you to adjust it to market rate as justified by comparable rental data. That way the increase can be passed on without negotiation and reviewed in full when the lease next comes to expiry.

    We are preparing tenants for an increase in either case and they will soon see that it will be the same or more to move elsewhere not to mention the moving costs.

    This is all just part of the cycle we have been waiting for- soon more and more tenants will want out of renting as it becomes cheaper and cheaper to buy than rent. Plus investors are already returning to our market attracted by the increasing rental yields.

    Both of these types of buyers will see demand increase further and help to push house prices up. The recovery has begun! Let’s hope it continues.
     
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  11. Propin

    Propin Well-Known Member

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    Another surprise to me while doing a refinance is that my tenant came off a fixed lease to a periodic lease. Even though the tenant has been paying the same amount for about two years going into the same banks savings account they won’t accept it and will get a valuer to determine rental value. Not sure if normal or Covid related? Seems strange!
     
  12. thatbum

    thatbum Well-Known Member

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    This isn't strictly true because you can increase the rent on a new fixed term tenancy actually.
     
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  13. smallbuyer

    smallbuyer Well-Known Member

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    Only to a new tenant I assume?
     
  14. thatbum

    thatbum Well-Known Member

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    Nope, it can be an existing tenant.
     
  15. Shogun

    Shogun Well-Known Member

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    https://www.commerce.wa.gov.au/consumer-protection/residential-tenancies-covid-19-response

    My renter's fixed-term agreement is due to expire. Can I increase the rent if they sign a new fixed-term agreement for the premises?

    You cannot increase the rent during the emergency period with an existing renter. This includes when the renter's fixed-term agreement ends and you either enter into another fixed-term agreement or a periodic agreement with the same renter.
     
  16. thatbum

    thatbum Well-Known Member

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    You can if the new fixed term doesn't start immediately after the termination of the current fixed term. Say, if they're on a periodic tenancy for example.

    I wonder what the landlord hotline would say about that. They probably wouldn't give the correct advice - I don't even think REIWA is giving the correct advice.
     
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  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I get the concept, let Tenant go onto periodic then offer a new fixed term lease BUT I'm not sure what tenant would agree to move from periodic to a fixed term if the fixed term was at a higher rate?
     
  18. thydzik

    thydzik Well-Known Member

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    I agree. All it it's going to do is get the tenant asking what are my tenancy rights, which are highly in there favour.
    I am finding lots of tenants are not aware of the current covid emergency legislation or don't understand they can only leave with 21 days notice.
     
  19. thatbum

    thatbum Well-Known Member

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    Look I wouldn't agree either but there is something potentially to benefit from if the new fixed term gives some security of tenure and guarantees against further rent increases during the new term (beyond the end of the emergency period).
     
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  20. Jarrad Mahon

    Jarrad Mahon Active Member

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    The Department is very clear that a rent increase can not be given until after 28th March to any existing tenant regardless of the form of lease... I would certainly not be comfortable exposing clients to the risk of going against their interpretation of the COVID-19 Act, especially if you then have other complications with your tenancy and have to go to conciliation or court later.

    See the Department website FAQ here which says:
    You cannot increase the rent during the emergency period with an existing renter. This includes when the renter's fixed-term agreement ends and you either enter into another fixed-term agreement or a periodic agreement with the same renter.”
     
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