Scrapping of rental letting fees to ease tenant woes

4/3/07
Rental letting fees are to be scrapped as part of a Government plan to ease the burden on tenants.
Premier Alan Carpenter said letting fees - typically a week's rent and paid by tenants when signing a lease - could amount to hundreds of dollars.
"Abolishing letting fees will break down a major barrier prospective tenants face when they attempt to get into a rental property," Mr Carpenter said.
"Letting fees can be an unnecessary burden on those who are already cash-strapped and doing it hard trying to find suitable rental accommodation.
"Their abolition is the most immediate relief we can offer struggling tenants."
The Premier said Western Australia's economic boom had resulted in a pressurised rental market and meant consumers already had to battle each other for properties before finding bond money and rent in advance.
"Consumers are already faced with enough costs when entering a tenancy without having to pay more fees which can lock people out," he said.
Consumer Protection Minister Sheila McHale said the letting fees would be abolished on April 5.
"Currently, consumers attempting to rent through a real estate agent are faced with up-front costs of one month's rent as a bond, two weeks' rent in advance, a pet bond of up to $100, if appropriate and one week's rent as a letting fee," Ms McHale said.
"I have asked the Consumer Protection Commissioner to work quickly in getting the change gazetted.
"This will also allow some time for the real estate industry to change their business practices."
The Minister said she was also examining whether to scrap or cap 'application' and 'option' fees - a charge payable when submitting a rental application.
Letting fees are payable when people rent residential properties through real estate agencies. Private landlords managing their own properties are already prohibited from charging letting fees.
Mr Carpenter also renewed his Government's call for the Howard Government to lift the paltry levels of Commonwealth Rent Assistance for struggling WA families.
The Premier said that since June 2001, the median rent had increased by 60 per cent. In comparison, between 2000-01 and 2005-06 Commonwealth Rent Assistance lagged behind and increased by just 4.6 per cent.
"This is an absolute insult and clear evidence of the lack of understanding and compassion shown by Mr Howard for almost a quarter of WA households who live in rental accommodation," he said.
Minister for Consumer Protection's office - 9213 6900