Western Australia’s rental reforms have entered phase two, bringing changes that may impact your tenancy. One of the key changes is the limitation of rent increases to once every 12 months. REIWA clarifies how this new rule applies to various lease scenarios:
Do existing leases with six-month rent reviews still apply?
Yes, if your lease was signed before July 29th, 2024, any stipulated six-month rent reviews remain enforceable. This includes leases commencing after the 29th but signed beforehand.
What if my lease expires in May 2025 with a November 2024 rent review?
The rent increase can only happen 12 months after the last increase (November 2024). If you renew the lease in May 2025, the next rent increase wouldn’t be possible until November 2025.
My lease has a six-month review in April 2024, but renews in October 2024. Can rent be increased then?
No. Since the legislation is now in effect, rent increases must be spaced 12 months apart. Upon renewal, the earliest possible rent increase would be April 2025.
What about periodic leases with a February 2024 increase? Can rent be raised in August 2024?
No, the 12-month limit applies to periodic leases immediately. The next rent increase can only occur in February 2025, regardless of any prior notices.
Can a landlord use short leases to bypass the 12-month rule?
No. The legislation treats consecutive fixed-term leases for the same occupants as one continuous agreement. This means rent increases must still adhere to the 12-month limit, even with multiple short leases.
What are some other changes to be aware of?
- The notice period for rent increases is now 60 days, and the increase takes effect immediately.
- The 30-day grace period for fixed-term leases no longer applies.