Real estate investors in Western Australia will be allowed to increase rents after the emergency period deadline for the Residential Tenancies Act (COVID-19 response) on March 28.
Emergency period deadline means end of moratorium on evictions and rent increases.
Damian Collins, president of the Real Estate Institute of Western Australia (REIWA), said the state government decision to extend the moratorium on evictions and price increases in September had a "debilitating effect "in the rental market.
"Since the announcement in September, Perth's vacancy rate has fallen below 1%, the lowest level we've seen in 40 years. There is very little rental stock available on the market and people who are actively looking for a place to rent are very difficult to find accommodation, ”he said.
Collins said ending the moratorium would be able to resolve the state's rental shortage, as investors will have more incentive to buy property.
"This should increase the number of properties available for rent and help create a more balanced market," he said. "We need to encourage investor activity in WA. It is constantly forgotten how important real estate investors are to maintaining a healthy, affordable and balanced rental market.
Additionally, Collins said investors will be able to raise rental prices for the first time in 12 months to reflect changes in the market over the past year. Data from REIWA showed the median weekly rent in Perth rose to $ 400 in February, from $ 360 in the same month last year.
"We encourage landlords and tenants to be reasonable in rent negotiations and to discuss with your property managers what is a fair outcome for both parties," Collins said.
Top suburbs:
tank
,
leumeah
,
Kariong
,
Harris park
,
West Wodonga
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