Landlords in WA about to be done over - Residential Tenancies Amendment Bill 2011

[Burbs]

ATTENTION WA RENTAL PROPERTY OWNERS

The long-awaited Residential Tenancies Amendment Bill 2011 is about to have its second reading in the Legislative Assembly.

For details look up the Parliament website, current Bills, under "R": http://www.parliament.wa.gov.au/web/newwebparl.nsf/iframewebpages/Bills+-+Current.

Key features of the Bill include:

• 30 new fines for owners, 2 new fines for owners and tenants, no new fines for tenants.
• All fines increased from $1000 to between $5000 and $20,000
• Owners may be forced to pay a bond for maintenance.
• Owners lose the right to alter the property without tenant's consent
• Tenants gain enhanced occupation rights
• Magistrates have enhanced powers to change and backdate rents.

More details on fines here: http://www.po.asn.au/files/Fines-under-the-Residential-Tenancies-Amendment-Bill-2011.pdf

More details on the overall legislation here: http://smallbrook.com.au/wp-content/uploads/2011/08/20110524-POAWA-Press-Release1.pdf

A few more points of concern:

• Databases emasculated with defaulting tenants getting a free home run into their next rental and then having their record wiped clean after 3 years.
• Tenants notice period for no-reason termination increased from 60 to 120 days
• Many more forms for landlords to comply with
• New set of regulations for handling abandoned documents, with fines if you dont comply.
• Education campaign planned by Department of Commerce to educate tenants of their rights and their ability to take legal action against owners
• New group of prosecution officers employed to enforce the regulations against owners.
  

Some reflections:

• I have contacted all mainstream media outlets in WA and they wont run the story - the best I have had is page 13 of last week's Perth Voice
• I have met with Department of Commerce and they are not interested in any changes, stating the legislation is to protect tenants not landlords.
• I have contacted many MPs on both sides of the house and there is virtually no interest
• I have contacted hundreds of owners and only a handful have responded with any action

My request: WA landlords please write to your local MP this week expressing your objections to the legislation. At the moment they think you dont care.

Burbs

 

[Ed Barton]

ATTENTION WA RENTAL PROPERTY OWNERS

The long-awaited Residential Tenancies Amendment Bill 2011 is about to have its second reading in the Legislative Assembly.

For details look up the Parliament website, current Bills, under "R": http://www.parliament.wa.gov.au/web/newwebparl.nsf/iframewebpages/Bills+-+Current.

Key features of the Bill include:

• 30 new fines for owners, 2 new fines for owners and tenants, no new fines for tenants.
• All fines increased from $1000 to between $5000 and $20,000
• Owners may be forced to pay a bond for maintenance.
• Owners lose the right to alter the property without tenant's consent
• Tenants gain enhanced occupation rights
• Magistrates have enhanced powers to change and backdate rents.

More details on fines here: http://www.po.asn.au/files/Fines-under-the-Residential-Tenancies-Amendment-Bill-2011.pdf

More details on the overall legislation here: http://smallbrook.com.au/wp-content/uploads/2011/08/20110524-POAWA-Press-Release1.pdf

A few more points of concern:

• Databases emasculated with defaulting tenants getting a free home run into their next rental and then having their record wiped clean after 3 years.
• Tenants notice period for no-reason termination increased from 60 to 120 days
• Many more forms for landlords to comply with
• New set of regulations for handling abandoned documents, with fines if you dont comply.
• Education campaign planned by Department of Commerce to educate tenants of their rights and their ability to take legal action against owners
• New group of prosecution officers employed to enforce the regulations against owners.
  

Some reflections:

• I have contacted all mainstream media outlets in WA and they wont run the story - the best I have had is page 13 of last week's Perth Voice
• I have met with Department of Commerce and they are not interested in any changes, stating the legislation is to protect tenants not landlords.
• I have contacted many MPs on both sides of the house and there is virtually no interest
• I have contacted hundreds of owners and only a handful have responded with any action

My request: WA landlords please write to your local MP this week expressing your objections to the legislation. At the moment they think you dont care.

Burbs

i think you're a bit late. didn't this pass months ago?

 

[Francesco]

Dazz is vindicated to cease investing in the residential rental market! It is bad news. The only thing is to increase rent to compensate for all the additional risks landlord has to take on.

 

[Burbs]

i think you're a bit late. didn't this pass months ago?

No, it has not passed, it is still in the Legislative Assembly. The Liberal Party, Department of Commerce and Tenants Advisory Service are very aware that it is not passed yet, and hope that it does so quietly and soon. It is up to owners to stop it.

Burbs

 

[Ausprop]

the best we can hope for is that the investment class is reassessed for risk and yieds adjust accordingly

on the bright side... think of all those extra tax deductions

 

[Burbs]

the best we can hope for is that the investment class is reassessed for risk and yieds adjust accordingly

Yes that is the correct outcome in a rational informed investor market.

Which is why it will not happen in the residential rental market.

Where there is a constant fresh supply of naive mums and dads purchasing their single investment property, holding it for a few years and selling.

With no learning effect, no institutional invesment and virtually no informed experienced investors (from memory only around 13,000 investors with 6 or more properties in the entire country).

So rents will not rise, and owners will absorb the cost.

Hence please write to your local MP protesting the legislation.

Burbs

 

[jacbmw]

Yes that is the correct outcome in a rational informed investor market.

Which is why it will not happen in the residential rental market.

Where there is a constant fresh supply of naive mums and dads purchasing their single investment property, holding it for a few years and selling.

With no learning effect, no institutional invesment and virtually no informed experienced investors (from memory only around 13,000 investors with 6 or more properties in the entire country).

So rents will not rise, and owners will absorb the cost.

Hence please write to your local MP protesting the legislation.

Burbs

Agreed Burbs - Yes on the surface the economics of it would suggest that rents would rise, but have to agree with you.

Very scary precedent.

Have there been a high number of high profile tenant victimization cases/reports in WA or something, that would explain the government wanting to move on this? Or maybe this is a round about way of removing investors from the market, lowering competition, and increasing affordability (in their minds lol)

 

[Aaron Sice]

well then - time to rent out houses room by room with no official lease.

 

[INVSTOR]

[*]I have contacted hundreds of owners and only a handful have responded with any action
[/LIST]

My request: WA landlords please write to your local MP this week expressing your objections to the legislation. At the moment they think you dont care.

Burbs

Hi Burbs,

I'm sure you would get a much higher response if you provide a draft letter of objection and provide a link to postal address of MP's. I'm sure a lot more people object but are unsure what to write.

 

[Burbs]

I'm sure you would get a much higher response if you provide a draft letter of objection and provide a link to postal address of MP's. I'm sure a lot more people object but are unsure what to write.

List of MP's addresses including emails: http://www.parliament.wa.gov.au/web/newwebparl.nsf/iframewebpages/Members+-+Current

I did not draft a letter, because people inevitably copy and paste it without alteration, and politicians then ignore the mass-produced shredder fodder.

What is needed is individual letters, with personal stories. The one politician that I contacted that was slightly responsive, requested that I provide stories of individual investors that have been injured/defrauded by tenants, so they could be read out in the parliamentary debate.

For those who are still unsure of what to write/email:

-----
Your Address

Date

Politicians Address

Dear Politician's Name

OBJECTION TO RESIDENTIAL TENANCIES AMENDMENT BILL 2011

I strongly object to the proposed Residential Tenancies Amendment Bill 2011, and request that you vote against it.

The legislation will harm owners, and the worst bits from my perspective are:
1. Bit
2. Bit
3. Bit

In my experience as a rental property owner, I have found the problems to be with the tenants and not the owners. For example, the following situation happened to me. [Insert story]

If this legislation is passed, I think it will have the following impact:

1. Bad
2. Bad
3. Bad

So please listen to the voice of reason and vote against the RTAB 2011.

Regards,

Mr/Ms Owner

--------

Burbs

 

[Dazz]

The current legislation in force now - the 1987 version of the RTA - is a horrible read if you are an Owner. This new 2011 update just makes it beyond pathetic.

This looks very similar to what went thru NSW last year. When push comes to shove, the Owners have no chance.

The only hope owners have is to pray that the Tenants cannot read / aren't interested in reading about their rights / or they are simply lazy.

A canny cunning Tenant exercising all of these new 2011 rights will be able to hit Owners out of the park for a six. No doubt the owners will be compensated to carry these large risks by receiving their large 3.0% gross yields.

She's a mugs game - I spotted that 7 years ago and changed tack accordingly. The residential sandpit is not a nice place to play with your toys.

The Tenant's Union and all of the advocates protecting and massively enhancing Tenants rights have done an outstanding job. They are to be warmly congratulated.

No point beating your head against a brick wall trying to change this legislation - blind Freddy can see what the intention is.....it's not as if after writing a few letters from rich squealing Landlords they are going to turn the entire ship around 180 degrees and start fining Tenants.

The only solution to get out from under this woeful collection of words is to not purchase objects that fall under this legislation. There is no other answer.

 

[Burbs]

The only solution to get out from under this woeful collection of words is to not purchase objects that fall under this legislation. There is no other answer.

Hi Dazz. All true, however the following facts cannot be ignored:
1. The majority of investors on this forum and indeed in Australia have their wealth already in residential property. Future transactions may well be into different sectors however that doesnt change the past.
2. Property is inflexible to transact and most investors will be retaining their resi properties despite any change in legislation.
3. Hence it is still in investors best interests to at least attempt to moderate the worst excesses of this legislation.

Burbs
thinking about re-reading Atlas Shrugged

 

[INVSTOR]

List of MP's addresses including emails: http://www.parliament.wa.gov.au/web/newwebparl.nsf/iframewebpages/Members+-+Current

I did not draft a letter, because people inevitably copy and paste it without alteration, and politicians then ignore the mass-produced shredder fodder.

What is needed is individual letters, with personal stories. The one politician that I contacted that was slightly responsive, requested that I provide stories of individual investors that have been injured/defrauded by tenants, so they could be read out in the parliamentary debate.

For those who are still unsure of what to write/email:

-----
Your Address

Date

Politicians Address

Dear Politician's Name

OBJECTION TO RESIDENTIAL TENANCIES AMENDMENT BILL 2011

I strongly object to the proposed Residential Tenancies Amendment Bill 2011, and request that you vote against it.

The legislation will harm owners, and the worst bits from my perspective are:
1. Bit
2. Bit
3. Bit

In my experience as a rental property owner, I have found the problems to be with the tenants and not the owners. For example, the following situation happened to me. [Insert story]

If this legislation is passed, I think it will have the following impact:

1. Bad
2. Bad
3. Bad

So please listen to the voice of reason and vote against the RTAB 2011.

Regards,

Mr/Ms Owner

--------

Burbs

Thanks Burbs. I'm sure when they realise there Homeswest waiting list will get longer and rents will rise when there are less investors they will think about it for a bit longer.

 

[Dazz]

Agreed Burbs....most people have a bunch of money tied up in the sector and it's damn expensive flipping in and out of the ressy market.

 

[sanj]

This unfortunately just serves to confirm that buy and hold resi property is now officially a mugs game (barring a few regional exceptions)

 

[porp_e]

Burbs, thanks for the heads up.

 

[redwing]

hey Burbs,

Here's a couple of previous gems from Dazz

Excellent work for reading the Act if you have....most don't and leave it to the PM or wing it.

The answer to your question is that the Tenant Union in your respective state is fervent about the issue and right in there, with their nose firmly planted in the trough when these things are drafted at the committee stage of things. It is rare - if at all, to have the Landlord's side of things represented when all of the real argy-bargy goes down.

The assumption is you are big enough and ugly enough to take care of yourself.

Gotta love those Tenant Union reps. They do a sterling job in protecting the rights of the tenant and leaving the landlord swinging in the wind. Over here in Perth we have a most affable chap who writes a colum in the Saturday West kindly informing the Tenants on exactly what their rights are, and what they don't need to do....and how they can palm almost all responsibility onto the Owner. We cringe most times we read his column, and pity the hapless investors heading into this game for the first time, knowing that this guy is helping the tenant separate you from your investing goals.

.....because legislation known as the RTA specifically designates it so.

As you are from WA, the legislation goes something like this ;

"The OWNER shall bear the cost of all rates, taxes or charges imposed in respect of the Premises under any of the following Acts : Local Govt Act 1960, Land Tax Act 1967, any written law under which a rate, tax or charge is imposed for 'water services' as defined in the Water Authority Act 1984, other than a charge for water consumed."

There is no negotiation available. The Landlord must pay for these imposts if the Premises are zoned residential and cannot by law pass these onto the Tenant.

The root cause of why the legislation states this ?? I think it might have something to do with the Tenant Union jumping in during the argy-bargy and defending tenants when the RTA was drawn up initially. Like any meeting, if you aren't strongly represented...or maybe not even at the meeting....you cop all of the bad stuff. Who knows if a Landlord's association were even present or consulted when it was drawn up. I'd be extremely interested to find out which exact bodies or groups were involved when the legislation was drafted and haggled over. All I can say is from a Landlord's perspective, the legislation is very lop-sided. You obviously think so as well, otherwise you wouldn't have posted the question.

As someone mentioned previously, if you don't like the rules of the game, your only choice is to play a different game. Simple.

I can but agree

 

[Burbs]

Hi Redwing. Yes I am well aware of Dazz's viewpoint, and who can disagree with the logic.

But my point of posting the information about the RTAB 2011 was so that the many investors on this forum who own residential properties in WA can at least have a go at preventing or reducing this legislation; rather than whinging after the event about how bad things have got now it is law.

So how about we focus on the details of the legislation, how it will affect investors, and what action people are taking to fight it?

I was too young in 1987 to do anything about the RTA, but this time I will not let the RTAB 2011 pass without a fight.

Burbs

 

[redwing]

Ah the fight between what is and what should be, is a battle fought by many a forefather

Google Sisyphus

I feel you brother, but standing in front of the steamroller is surety of a flat argument

Happy to throw a punch into the wind with you though

 

[INVSTOR]

Letter sent!

[*]I have contacted all mainstream media outlets in WA and they wont run the story - the best I have had is page 13 of last week's Perth Voice


Burbs

Have you tried the local paper? Liam Croy (reporter) 9231 5253 [email protected]