End of moratorium looms for renters

In response to COVID-19, the WA Government introduced a moratorium on some evictions and all rent increases until March 28 so that people who were facing financial hardship brought on by the pandemic would not find themselves homeless.

During that time rental properties in the region have become a rare commodity as people returned from overseas, sold or opted to use their investment property as a holiday home.

Community-based Facebook pages have been swamped with messages from people trying to secure a roof over their head.

A Margaret River resident who wished to remain anonymous was told on February 28, 2021 they would need to vacate their unit by March 29.

Their property manager advised them the owner wanted to sell which they thought would be easier if the unit was vacant.

"I felt instantly anxious," the person said.

"Housing security is one of those essentials as a human being, not having an idea of where you're living in the future puts the rest of your life into uncertain territory.

"Suddenly nothing else matters and your whole focus becomes finding the next place.

"I couldn't say yes to any future plans, and had to tell my boss that I might need to take leave if I have to live on someone's couch for some time.

"I had to think about where I was going to keep my dog, and what I was going to do with all my belongings if I couldn't find a permanent home."

Dunsborough resident and business owner Chad Jackson is also in a situation where his family have not been able to secure a new rental property while the property they live in is on the market.

Mr Jackson's family has lived at the same rental property in Dunsborough for the past eight years and will need to vacate by May.

"In the end we will definitely need to find somewhere else to live, I am not sure what will happen if the buyer is an investor but we are taking it as though we are moving," he said.

"It is a little bit stressful with the kids' schooling because we are not sure if we will have to move out of Dunsborough."

Consumer Protection is encouraging landlords and tenants to start a conversation now about what happens to their rental arrangements when the ordinary tenancy laws kick-in again.

They have developed a negotiating guide, which covers scenarios that could play out and examines the risks, benefits, considerations and pathways forward.

A Consumer Protection spokesperson said whichever position landlords and tenants were in, they believe that by negotiating now, they would be better prepared and have time to make plans for a safe and secure renting future.

On January 31, 2021, Commerce Minister John Quigley announced more financial assistance for tenants and landlords with the aim of securing current tenancies when the moratorium ends and with the rental market being tight.

To qualify for this assistance, tenants who are facing a significant rent increase, greater than the normal market rate of 5 per cent a year, can apply, but their landlord must agree to a fixed-term lease of at least six months duration starting from the moratorium end date. This grant is capped at $2,000 per tenancy.

The tenant will also need to be in financial hardship by: being in receipt of a Centrelink payment (excluding JobKeeper); having less than $10,000 in savings; and paying more than 25 per cent of their income in rent per week.

Adding pressure to the housing crisis is the number of properties being used as holiday homes in the region.

At the end of February there were 964 holiday homes registered with the City of Busselton, compared to 832 at the same time last year.

An inquiry into short stay accommodation found that ratepayers whose postal addresses were outside the City of Busselton accounted for more than 80 per cent of short-term rental owners in the community.

City of Busselton director of planning and development services Paul Needham said the city could not legally cap the number of holiday homes.

"This is governed by the open market," he said.

"We are aware of and in support of strategies to improve the availability of rental opportunities for seasonal workers and those residents looking for both short and long term rental properties."

Mr Needham said while there had been an increased demand for holiday rentals which has played a part in the rental crisis, there were many other factors contributing to the issue.

"The City has fairly limited powers to address this kind of issue, especially in the shorter term," he said.

"The City has, however, worked hard to support the development industry to deliver new housing over a long period of time, especially recently where there has been a very high level of demand.

"Unless the State of Federal Governments significantly changed their policies, over the longer term, the key factor that will support rental availability and affordability is the development of additional housing supply."

Recommendations from the state government's inquiry into the impacts of short-stay accommodation are yet to be implemented.

The 2019 inquiry found there was increasing evidence in the South West that the growth of short-term rentals affected the availability of long-term rentals and housing affordability.

It was recommended that the Planning Minister amend land use definitions to differentiate between hosted and unhosted short term rentals, and to include the size and capacity of those properties by June 2020.

A state government spokesperson said they were delivering on their commitment to adopt many of the recommendations from the inquiry.

"A number of Government agencies are working together to implement the recommendations, in consultation with key stakeholders including local government," the spokesperson said.

"A draft position statement is being prepared by the Western Australian Planning Commission to encourage better consistency in how short-term rentals are regulated.

"We did not want to rush through any changes and potentially put additional pressure on the sector.

"People are encouraged to take the opportunity have a say and put forward their ideas when the position statement is released for public comment in 2021."

Vasse MLA Libby Mettam said there was a real concern about what would happen when the moratorium on rentals ends.

"Not only for the local families that will have their tenancies affected and may be left without somewhere to live, but also for the businesses that rely on a permanent population to fill vital jobs in these towns," she said.

"This has been an ongoing issue for a number of months and the City of Busselton needs to urgently work with the State Government to come up with an effective, long-term solution."

Warren Blackwood MLA Terry Redman said the housing shortage currently being experienced in the South West, and the prediction that it would likely get a lot worse in the near future, was one of the curve balls COVID-19 has thrown up.

"A large number of returning ex-pats, more people holidaying at home or buying holiday homes, and a renewed interest in shifting to regional WA have led to an unparalleled level of homelessness in the South West and Great Southern," he said.

"The profile of homeless people or those at risk of homelessness is changing, with the demographic now including older people, families with children, and people with jobs who are still unable to obtain a house.

"Another area of focus should be the holiday accommodation sector.

"I was a member of the Parliamentary Committee which reviewed short stay accommodation and the impact of online booking platforms.

"It quickly became apparent that the ease of listing houses as short stay accommodation has led to more absentee owners using this platform rather than putting their properties on the long term rental market.

"The McGowan Government has had the 'Levelling the Playing Field' report for over a year and has not moved on key recommendations such as a central register for accommodation providers.

"Movement on this front would give local governments the tools to properly regulate un-hosted and unregistered providers, thereby leading to more properties being listed for long term rental.

"It is time the McGowan Government stepped up and implemented innovative solutions. These issues are not new and are unlikely to go away.

"The Nationals when in Government prioritised and built essential worker accommodation in Karratha and Port Hedland in response to unprecedented growth in demand. We were criticised for it at the time, but it worked.

"People need a place to live. The Government needs to be active in this space and waiting for something else to break is not an option."

South West MLC Colin Tincknell said the housing crisis gripping the region sat firmly at the feet of the Premier and the metro-centric government.

Outlining the Regional Housing Policy One Nation would take to the March election Mr Tincknell said many people in his electorate felt totally abandoned by the McGowan Government.

"The McGowan Government has put a lot of measures in place to encourage investment and growth in the Perth housing sector but there has been precious little help for the regions which are struggling more than ever to attract sufficient workers to meet the demands of local businesses," he said.

"The stamp duty concessions being offered by the McGowan Government, for example, for apartments bought off the plan have almost zero impact in regional areas."

Mr Tincknell said efforts by local organisations, including a collaboration between councils, chambers of industry and industry bodies to find rental opportunities in private homes had provided minimal impact.

"In reality, if someone is willing to rent out a spare room in their home, they'll put it on online booking platforms, if they haven't already," he said.

"It is a double-edged sword that needs to be regulated.

"It can help to increase visitor numbers in a region, that's of little value to tourism operators and other local businesses if they can't get staff because they can't get housing for them.

"I'm not proposing stopping online booking platforms but it needs better regulation."