07/05/2026
The truth about banning
"NO GROUNDS RENTAL EVICTIONS"
REIWA President Suzanne Brown today said the Institute was deeply concerned by the Cook Governmentโs announcement regarding the inclusion of no grounds terminations in the next review of the Residential Tenancies Act.
โFor those who viewed Mondays announcement as a victory, I caution in the long term there will be no winnersโ, Ms Brown said.
โOur objection to the removal of no grounds terminations should not be seen as being anti-tenant or pro-landlord; itโs about ensuring the viability of WAโs rental market.
โAcross the state, the rental market has not fully recovered from the mass exodus of investors post-COVID. WA cannot afford to lose any more rental properties. Another drop in supply will see the vacancy rate fall, competition for available properties increase, and even more upward pressure on rent prices.
โWe know this reform is important to investors, who are also facing changes to the Capital Gains Tax discount and negative gearing by the Federal Government.
โMany REIWA members are already reporting an increase in sales by investors and investor appraisals. Every rental property lost is a blow to tenants and rental affordability.
โPolicy reforms have a real market impact and need to be based on market evidence. In a delicately balanced market, this reform will do more harm than good and ultimately hurt tenants through fewer options and higher rent prices.โ
Ms Brown said REIWAโs concern wasnโt limited to the impacts of a reduction in supply.
โEven if there was no decline in supply, this reform will increase investorsโ risk and costs, which in turn will be detrimental to tenants,โ she said. โThe removal of no grounds terminations will reduce investorsโ options for dealing with the small proportion of tenants who breach their agreement or behave in ways that render the relationship between the tenant and owner unworkable.
โCurrently, owners typically choose not to renew tenancies at the end of a fixed-term lease as opposed to issuing a breach notice during the term or applying for a court order. This is less costly to both parties and results in a more favourable outcome for the tenant as there is no blemish on their rental history, making it easier for them to secure rental accommodation in the future.
โThe removal of no grounds terminations would lead to a significant increase in the number of breach notices issued and subsequent court hearings required, as this would become the only means of removing problematic tenants.
โThe cost of anticipating and dealing with these breaches will be material. Further, there will be a shift towards more intensive screening of tenants by property managers and owners. This will add costs to the letting process and make it harder for people with poor, or no, references to find a rental property.
โRent prices are likely to rise in response to the increase in risks and costs to investors.
โUltimately, this reform will introduce more cost to the system that will be borne by investors, taxpayers, and tenants.โ
Regarding the remaining potential reforms, Ms Brown said REIWA was broadly in favour of minimum standards for rental properties, along with clarifying the information tenants could be asked to provide and what owners and property managers were required to provide tenants.
โWe will continue to work with the Cook Government to ensure any reforms are workable, balanced, and introduce as little friction into the rental market as possible,โ she said.
Source - REIWA
