With the Australian Capital Territory extending the emergency period tenancy legislation for residential and commercial properties, REIWA is calling on the Western Australian government to allow the emergency period in our state to end at the current proposed time of 29 September 2020.
REIWA President Damian Collins said that with the WA property markets returning towards normality, there was no need for the legislation to be extended.
The emergency legislation was introduced on the basis that the WA economy would face a far greater shock than it actually did and while we understand that the economy is certainly not as strong as it was pre-COVID, applying emergency legislation to all tenancies is not the appropriate response to those who may need assistance, Mr Collins said.
Residential tenancies
During the current emergency period, REIWA members have reported that approximately one per cent of residential tenancies have been unable to meet their rent in WA.
For the vast majority of residential tenants who have been only moderately affected by COVID, the rental market should return to the normal supply and demand fundamentals, Mr Collins said.
Findout more on what theResidential Tenancies (COVID-19Response) Actmeans for residential tenants.
Impact on landlords
Its not fair that owners, who in fact may be suffering more than the tenants, are not able to exercise their normal rights under the lease.
From a landlords perspective, extending the emergency period could place them in a position of increased financial hardship as they are no longer able to defer mortgage repayments, with some deciding to sell, which would further reduce rental stock available.
With the current vacancy rate sitting at two per cent, we cant afford for landlords to take their properties out of the private rental market, as not only will this impact stock levels, it may also increase the median weekly rent, Mr Collins said.
