Western Australia Rent Increase Laws: Limits & Notice Rules

Residential rent increases in Western Australia are governed by the Residential Tenancies Act 1987, which officially commenced on 1 July 1989. The state significantly reformed these laws via the Residential Tenancies Amendment Act 2024, which took effect on 29 July 2024, primarily to limit rent increases to once every 12 months and provide tenants with greater financial stability.

Key Rent Increase Rules

Frequency Cap: Once Every 12 Months

Under the reformed law (Sections 31A and 31B), rent can only be increased once in any 12-month period for both fixed-term and periodic tenancies. This replaced the previous rule that allowed increases every six months.

• Periodic tenancies: The 12-month rule applies regardless of when the tenancy agreement was signed, effective from 29 July 2024.
• Fixed-term leases signed after 29 July 2024: The 12-month limit applies immediately.
• Fixed-term leases signed before 29 July 2024: The 12-month rule takes effect when the current fixed term ends.

No Cap on Amount

While the frequency of rent increases is restricted, there is currently no cap on the amount by which a landlord can increase the rent. A landlord can raise the rent by any dollar amount, provided they comply with the notice requirements.

Notice Requirements

Landlords must provide at least 60 days' written notice of a rent increase using the approved Form 10 — Notice to Tenant of Rent Increase. The notice must clearly state:

1. The new rent amount.
2. The date the increase takes effect.
3. The method of payment (if changing).

If the landlord fails to use the correct form or provide adequate notice, the tenant is not obligated to pay the increased rent.

Fixed-Term Lease Restrictions

For fixed-term tenancy agreements, rent can only be increased during the term if the written agreement specifically outlines:

• The exact amount of the increase, OR
• The method of calculating the increase (e.g., CPI adjustment, fixed percentage).

If the fixed-term lease does not contain such a clause, the landlord cannot increase the rent until the lease expires and a new agreement is negotiated.

Protections Against Unfair Increases

Retaliatory Increases

A rent increase may be considered retaliatory if it occurs shortly after a tenant has exercised a legal right, such as:

• Requesting repairs.
• Lodging a complaint with Consumer Protection.
• Applying to the court regarding a tenancy matter.

If a tenant believes a rent increase is retaliatory, they can apply to the Magistrates Court for a determination. If the court finds the increase is retaliatory, it may be set aside.

Discrimination

Rent increases that target a tenant based on their race, sex, marital status, disability, age, or sexuality are unlawful under the Equal Opportunity Act 1984 (WA).

Best Practices for WA Landlords

1. Plan 12 months ahead: Since you can only increase rent once a year, calculate a realistic increase that accounts for your projected cost increases over the full year.
2. Use the correct form: Always use Form 10. An informal email or letter is not sufficient and the tenant can legally ignore it.
3. Give more than 60 days if possible: Consider providing 90 days' notice to maintain a positive relationship and reduce tenant turnover.
4. Document everything: Keep a copy of the signed notice and note when it was posted or delivered.

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