Western Australia’s residential tenancy legislation is in the midst of a significant review. Proposed changes include banning no grounds terminations, setting minimum standards and limiting the information that can be collected in rental applications.
Much of the reforms are modelled on Victorian legislation. More than 150 rental market reforms have been introduced in Victoria over the past decade. It is considered the most heavily legislated and pro-tenant jurisdiction in the country.
The question is: has all this legislation improved the lot of tenants? The answer appears to be no.
Last October, Consumer Policy Research Centre launched Australia’s first Renter Confidence Index and the Renting in Reality report. The report found, despite the significant protections for Victorian tenants, only one in six had high confidence in the rental market (indicating high satisfaction and no major tenancy issues in the past 12 months).
Seventy-nine per cent of those surveyed had at least one problem in the past year, yet only half (52 per cent) made a complaint about it. Many held back because of fear of retaliation, specifically eviction. And yet, no grounds terminations are banned in Victoria. It is extremely difficult to evict a tenant or terminate a lease in Victoria unless you meet specific grounds. Retaliatory action is also illegal.
When speaking with Real Estate Institute of Victoria (REIV) and Real Estate Institute of Australia President Jacob Caine recently, Mr Caine said tenants were reluctant to raise issues because they were afraid the property would be sold, leaving them without a home in a very constrained rental market. Selling an investment property is a legitimate ground for eviction.
Mr Caine said tenants were right to be concerned. Victorian investors have had enough and have been leaving the market in significant numbers. Data from the latest Homes Victoria Rental Report revealed Victorian rental supply experienced a net decline of more than 22,000 active bonds between September 2023 and September 2025. Mr Caine said the exodus continued.
Research by REIV found 81 per cent of Victorians surveyed agreed the current Victorian rental market tax and regulatory settings discouraged investment. Fifty-six per cent of investors surveyed would either reduce the size of their property portfolio, sell and change their investment strategy, or sell and buy interstate if the current conditions did not change.
We don’t want the Victorian experience for Western Australian tenants. Strict and extensive legislative protections haven’t reduced the fear of eviction, despite tenant advocates claiming they would. Supply is the real issue. When there is adequate supply, tenants can move about freely and find a more affordable or suitable home in a more convenient location. When supply is constrained, regardless of legislative reform, the tenant experience remains negative.
WA needs a legislative environment that supports investment. Only then will conditions improve for tenants.