The relationship between WA renters and landlords is set for its biggest shake-up in years, and not everyone is fully onboard.
Under reforms announced yesterday, renters will soon have greater rights to keep pets and make minor modifications, with landlords restricted to only increasing rent once a year.
Landlords and property managers won't be able to encourage tenants to offer more than advertised rent, the release of bonds will be streamlined and disputes will be handled by the Commissioner for Consumer Protection rather than magistrates.
The changes are due to take effect from mid next year, but for some investors the ABC has spoken to, reforms are set to do little to change their mind on whether to stay in the market – making it even more difficult for the government to achieve its aim of boosting supply.
Jacinta Goerke has been a landlord for about 30 years and said she was still planning to sell up in the near future.
"People back then [when I started] told me don't do it, all you'll be doing is cleaning up homes, fixing houses … try and enjoy your life and get into something a bit better," she said.
"Unfortunately, they were right and I am leaving.
"Will the changes today stop me from selling? No, absolutely not."
A balancing act
For both renters and landlords, high costs remain the big issue that will not be addressed by the changes.
The minister responsible for delivering the long-awaited reforms, Sue Ellery, acknowledged as much when she announced the changes alongside Housing Minister John Carey.
Both pointed to the fact that only increasing the number of rentals on the market would drive down prices.
"We are using every lever we can to accelerate the delivery of housing in Western Australia," Mr Carey said.
"Planning reform to streamline infill development, stamp duty concessions for affordable apartments, a new infrastructure fund to subsidise and get apartment development going.
The task ahead is great, with the Real Estate Institute of WA estimating of all rental properties in Perth, just 0.7 per cent were available for rent in April.
That's far below the 2.5 to 3.5 per cent range it said represented a balanced market.
The low vacancy rate is driving up prices and left the government hesitant to do anything that scares more investors away.
"If we restrict the decisions that owners can make about how they manage and use their asset, the risk we take is that they remove them from what is already a really tight rental market," Ms Ellery said yesterday.
"It's not the right time to make it more complex to own and manage a long-term private rental property."
No movement on no-grounds evictions
One of the biggest things the government — and the real estate lobby — fears would drive investors out of the market is the end of no-grounds evictions.
Laws already in place of other parts of the world, and Australia, mean landlords can only evict tenants for specified reasons, like seriously damaging the property, owing two weeks' of rent or using the property for illegal purposes.
"If we were to remove it [no grounds evictions] we would see a disproportionate response from investors who would simply exit the market now," REIWA CEO Cath Hart said.
Neil currently rents out three properties in Perth and said if the government had gone much further, especially by outlawing no grounds evictions, he would have thought about selling up.
He did not want his full name used because of his employer.
"If somebody chooses to make an investment in a property and put the entirety of their livelihood into it, for government to say that you don't have freedom of how to control that asset, I think is wrong," he said.
Despite those concerns he was supportive of other changes, including allowing renters to make minor modifications.
"If you want to kick someone out every six months you don't want them messing around with the place," he said.
"If you want someone to live there, make it feel like their home, then actually you get a bigger return in someone feeling like the house is theirs because they look after it better.
"If that means painting a bedroom or changing a light fitting or putting a hook in the wall, then that's a pretty small price to pay.
'Risk of eviction' still looms large
But members of the Make Renting Fair campaign – a group of social service providers and unions advocating for more ambitious reform – say the changes mean little if tenants can still be evicted for no reason.
"Obviously not all landlords are bad, so there'll be lots of situations where modifications and pets will be welcome, and that's why we welcome that change," ShelterWA CEO Kath Snell said.
"But we are still concerned that if there's still a risk of eviction, then people might not ask for those things."
Anglicare WA CEO Mark Glasson agreed.
"I think the vast majority of landlords want to do the right thing, however, there is a sizeable group in that industry who are there solely for the financial benefit and they will do what they need to maximise their return," he said.
"Unfortunately, with more and more Western Australians renting, they need additional protection from that particular group."
The campaign says the experience in other places that have ended no-grounds evictions shows investors won't flee the market.
When asked, Ms Ellery disagreed, saying WA's market was in a unique position that couldn't risk scaring property owners.
Fear of being 'difficult tenants'
When the ABC spoke to Alyssa earlier this month, she described how the tight rental market left her and her partner struggling to make ends meet but having to accept rapidly rising rents to keep a roof over their heads.
She does not want to be identified in case her landlord recognises her, and said she remained hesitant to contact them about repairs.
"We don't want to be seen to be rocking the boat, seeming like difficult tenants … that are too much work, costing the landlord too much money, and therefore not someone they want to keep in the house," Alyssa said.
Campaigners hope no-grounds evictions, and even a cap on rent increases, could be considered as part of a second round of reforms due to get underway later this year.
But Ms Ellery, who would be behind any future changes, said she could not see that happening in the "immediate to medium term".
"If we get supply right and the market is operating in its normal competitive status, if you like, then the market resolves those issues," she said.
REIWA's Cath Hart said no grounds evictions were only used in about 1.8 per cent of evictions.
Concern size of rent increase could grow
While Alyssa welcomed other changes, including limiting rent increases to only once a year, she worried that could come with a downside.
"It provides a little bit of relief because we know that we can plan more than 12 months ahead with our lives," Alyssa said.
"There is the concern that now landlords are going to say that the next time we go to renew our lease that they are potentially going to increase it more than we expected.
"Because they're going to have to mitigate for what they would view as potential loss of additional income by not being able to increase it halfway through the lease, so we do worry about whether or not it's going to cost more."
Ms Goerke and Neil also worried about the impact yearly increases could have, and whether they would be able to cover their own rising costs.
"My question to the government is are they also going to cap interest rate increases imposed by the banks?" Ms Goerke said.
Landlords under pressure
While REIWA was hopeful the new reforms would bring certainty to the rental sector and entice investment to WA, Ms Hart said pressures on landlords remained intense.
"There's pressures on landlords at the moment, really with those 11 interest rate rises, and you know the increased cost of living where some of them will look to consolidate their portfolios and exit the market," she said.
"The role I think that we have to play now is working with property owners and government to ensure we have practical and pragmatic application of these reforms such that it balances the rights of those owners with tenants."
