Emergency tenancy laws pass State Parliament

Commercial tenancies

On Monday, State Parliament passed legislation to allow for a commercial tenancies Code of Conduct. The Code is expected to be finalised in mid-May.

Property Council WA has made the case for reduced WA turnover thresholds, an exemption for smaller landlords and for the financial position of the landlord, as well as the tenant, to be taken into account.

Opposition and crossbench Legislative Council amendments to the Commercial Tenancies (Covid-19 Response) Act 2020 have gone some way to achieving a fairer Code.

We are concerned that the surprise introduction of a Bill to terminate commercial tenancies could jeopardise plans for job-generating developments.

We oppose any move to introduce early terminations. Early terminations will wreak havoc on the industry, undermine investor confidence in WA’s property market and are at odds with Prime Minister Scott Morrison’s business hibernation strategy.

We continue to work with the State Government and the regulator as they begin to draft the Code and welcome any feedback you may have in relation to this issue.

Residential tenancies

Legislation to protect residential tenants during COVID-19 also passed State Parliament this week. The legislation includes a ranges of measures including a moratorium on evictions, a freeze in rental increases during the pandemic period and the right for a tenant to terminate a lease early due to financial hardship, with 21 days notice.

Landlords are able to terminate leases in circumstances where they have lost their job or are suffering financial hardship and require somewhere to live. Landlords will have the ability to recoup rental deferrals after the moratorium and pandemic periods end and are not required to perform routine maintenance during the six month pandemic period. Urgent maintenance relating to safety will still have to be performed.

We are working with our members to understand any impacts this legislation may have on the retirement living sector. If required, the Property Council will make representations to the government in drafting additional regulations that clarify this law doesn’t apply to normal retirement village contracts.