As seen in The West Real Estate
Western Australia’s residential tenancy legislation is in the midst of a significant review. Proposed changes include banning no grounds terminations, setting minimum standards, and limiting the information that can be collected in rental applications.
Much of the reforms are modelled on Victorian legislation. Over 150 rental market reforms have been introduced in Victoria over the past decade. It is considered the most heavily legislated and pro-tenant jurisdiction in the country.
The question is, has all this legislation improved outcomes for tenants? The answer appears to be no.
Last October, the Consumer Policy Research Centre (CPRC) launched Australia’s first Renter Confidence index and the Renting in Reality renters report. The report found, despite the significant protections for Victorian tenants, only one in six had high confidence in the rental market (indicating high satisfaction and no major tenancy issues in the past 12 months).
79 per cent of those surveyed had at least one problem in the past year, yet only half made a complaint about it (52 per cent). Many held back because of fear of retaliation, specifically eviction. And yet, no grounds terminations are banned in Victoria. It is extremely difficult to evict a tenant/terminate a lease in Victoria unless you meet specific grounds. Retaliatory action is also illegal.
Speaking with REIV and REIA President Jacob Caine recently, he said tenants were reluctant to raise issues because they were afraid the property would be sold, leaving then without a home in a very constrained rental market. Selling an investment property is a legitimate ground for eviction.
Mr Caine says tenants were right to be concerned. Victorian investors have had enough and have been leaving the market in significant numbers. Victorian rental supply experienced a net decline of 22,000 active bonds between September 2023 and September 2025. Mr Caine says the exodus continues.
Research by the REIV found 81 per cent of Victorians surveyed agreed the current Victorian rental market tax and regulatory settings discouraged investment. 56 per cent of investors surveyed would either reduce the size of their property portfolio, sell and change their investment strategy, or sell and buy interstate if the current conditions did not change.
We don’t want the Victorian experience for WA tenants. Strict and extensive legislative protections haven’t reduced the fear of eviction, despite tenant advocates claiming they would. Supply is the real issue. When there is adequate supply, tenants can move about freely, and find a more affordable or suitable home, in a more convenient location. When supply is constrained, regardless of legislative reform, the tenant experience remains negative.
WA needs a legislative environment that supports investment, only then will conditions improve for tenants.
Suzanne Brown
REIWA President
Originally published by The West Real Estate, see thewest.com.au. Access may require a subscription.
