Tenants in hardship won’t escape rent payments but landlords won’t be able to evict them for at least six months under drastic tenancy laws being introduced to WA Parliament this week.
In order to manage the economic devastation caused by the coronavirus pandemic both residential and commercial rental laws will be given a temporary overhaul that will make it illegal to evict tenants falling behind on their rent for six months.
However, Premier Mark McGowan said that did not mean rent did not need to be paid.
“It is important for residential tenants to understand that what we’re introducing is a moratorium on eviction, not a moratorium on rent,” he said.
“Under the proposed reforms, tenants must continue to pay rent. If a tenant can’t pay their rent they will still have to pay it later, so continuing to pay rent will increase your chances of keeping debt to a manageable level.”
The Residential Tenancies (COVID-19 Response) Bill 2020 will see a moratorium placed on evictions for six months.
Exceptions apply in circumstances that include family violence, abandonment or a tenant or landlord is experiencing undue hardship.
Landlords will also still be able to evict a tenant causing serious damage to the property, injury to the landlord or a person in an adjacent building.
The bill will also see a freeze on rent increases, continuation of rental agreements during the emergency periods and removing obligations for landlords to conduct repairs if they can't afford them.
Tenants will also be able to break their lease without fees, though rental debt and damage charges will still apply.
Attorney General John Quigley said the new laws would protect the Magistrates Court and State Administrative Tribunal from being flooded by residential tenancy dispute applications.
The Commercial Tenancies (COVID-19 Response) Bill 2020 will introduce a moratorium on evictions for small commercial tenancies and introduce a code of conduct for landlords and tenants consistent with the national code announced last week.
Under that code landlords must offer tenants proportionate reductions in rent payable in the form of waivers and deferrals on a case-by-case basis, based on the reduction in the tenant’s trade during the pandemic and recovery period.
Mr McGowan urged tenants and landlords to discuss arrangements over the pandemic period.