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In this video presentation on tenancy laws in Western Australia, administered by Consumer
Protection, we will outline the rights and responsibilities of both tenants and property
owners, or their agent, and include changes which came into effect on 1st July 2013.
The renting of a home is covered by the Residential Tenancies Act, which sets out the rules relating
to such things as tenancy agreements, inspections, maintenance or repairs, rent increases and
how disputes can be resolved.
Almost a third of homes in Western Australia are rented, that's why it's important
that there are laws in place which protect the rights and interests of tenants and property
owners. We will cover a range of issues which you may need to consider at different stages
of a tenancy.
When a prospective tenant has found a property that suits their needs and budget, they may
be asked to submit an application form and may have to pay an Option Fee to prove that
their offer is genuine. There are now limits placed on this fee, also known as an application
fee.
For properties under $500 per week, the option fee is capped at $50; and for properties up
to $1,200 per week, the option fee can be no more than $100. In the north of Western
Australia above the 26th parallel, which is near Carnarvon, the option fee limit for all
properties with a weekly rent of more than $500 is $100.
The option fee must be refunded to the prospective tenant within 7 days if the application is
unsuccessful. If the application is successful, the fee can either be refunded or go towards
the first rent payment. Tenants should be warned though that the fee may be kept by
the property owner if the property is offered to them but they change their mind.
The property management industry and private property owners often subscribe to residential
tenancy databases, where they can check a tenant's history before accepting their
application. These databases record if a tenant has been evicted; left a damage bill or didn't
pay rent during previous tenancies.
Laws are now in place that give the tenant the right to access this information if their
application is rejected due to their rental history.
The property owner or agent must advise all applicants in writing which databases they
use, even if they don't intend to use them on this occasion. Information on how the applicants
can apply to have out-dated or incorrect information removed or amended must also be given.
Under the Equal Opportunity Act, it is illegal to discriminate against people in the rental
market based on sex, race, age, disability, marital status, religious or political beliefs,
family status, pregnancy, spent convictions or *** orientation. Tenants can't be
refused because they will have children living in the house.
If the application is successful, a standard residential tenancy agreement setting out
the period of the tenancy, the amount and frequency of rent payments and any other conditions,
must be completed. A copy of the agreement signed by both parties should be sent to the
tenant within 14 days.
Clauses in the standard agreement cannot be deleted and clauses can only be added if agreed
by both parties and they don't contradict the Residential Tenancies Act or any other
relevant law. Don't rely on verbal agreements; get any special conditions agreed to in writing!
There are two types of rental agreements - fixed term and periodic.
Fixed-term sets out specific start and end dates and may contain an option to renew.
These agreements normally provide tenants with added security and the rent cannot be
increased during this period, unless it is specified in the agreement.
A periodic agreement states the start date only and can be terminated at any time by
the tenant giving 21 days' notice to end the tenancy or the property owner giving 60
days' notice. The property owner can give less notice if there is a breach of the agreement.
The rent can be increased at any time, but the tenant must be given 60 days' notice
and can only happen at six-monthly intervals.
At the beginning of the tenancy, the tenant can only be charged two weeks rent in advance
and a security bond of no more than one month's rent. In some cases, a pet bond may apply.
All new security deposits must now be lodged with the Bond Administrator at the Department
of Commerce and should not be retained by the property owner or their agent. The tenant
should contact the Department if they don't get confirmation within a month that their
bond has been lodged by the owner or agent.
The agreement sets out how frequently the rent should be paid. The property owner cannot
require more than two weeks in advance, but the tenant can choose to pay more at any time.
If not specified in the agreement, rent can be paid either by cash, cheque or bank transfer
and the tenant should receive a receipt for all payments made.
It is compulsory that a standard Property Condition Report is filled out at the beginning
of a tenancy, listing room by room the contents and their condition, taking special note of
any existing damage.
The property owner must send the tenant two copies of the condition report within seven
days of moving in, which tenants should check carefully and change anything that may not
be correct. Tenants keep a copy of the changes they have made, and send a copy back within
seven days of receiving it; otherwise it will be assumed the tenant has agreed to the original
one.
This report may be used at the end of the tenancy to decide if any damage has been caused
by the tenant and how much security bond should be returned to the tenant.
For added protection, tenants may wish to take photographs or video of the property
that clearly shows the date of recording.
Now that all the paperwork has been done and money paid, the tenant is ready to move in.