No-Grounds Lease Terminations Confirmed: What Investors Need to Know

The Western Australian Government has confirmed it will be removing no-grounds terminations from the state's tenancy laws, meaning landlords will soon need to notify of a reason to end a tenancy.  

While there has been significant discussion around these reforms for some time, the key point for investors is that the changes have now been confirmed and are expected to be implemented in 2027.

Currently landlords can ask a tenant to leave without giving a reason. For periodic tenancies, 60 days' notice is required. For fixed-term leases, it’s 30 days' notice at the end of the lease.

Under the proposed reforms, this will no longer be permitted. Landlords will need to provide a valid reason to end a tenancy.

What reasons could landlords be able to use?

While this is still under consultation, according to the WA Government, landlords should be able to end tenancies under a range of prescribed reasons, these could include;

• Owner or family moving into the property
• Major renovations or demolition
• Sale of the property
• Serious lease breaches or unpaid rent
• Illegal activity at the property

The reform specifically removes the ability to terminate a tenancy without a nominated reason at the end of a tenancy.

Why this is getting so much attention

The WA Government said removing no‑grounds terminations would give renters more certainty, stability, and protection, helping create a fairer and more secure rental system.

However the reforms have sparked strong debate across the WA property industry, particularly because Perth’s rental market remains under pressure from low vacancy rates and ongoing supply shortages.

REIWA President Suzanne Brown warned the new legislation would introduce more risk and cost for investors, and that those costs would ultimately flow through to tenants.

Ms Brown highlighted a consequence often overlooked in the public debate. Currently, many landlords choose not to renew a fixed-term lease rather than issuing a formal breach notice, an approach that avoids court proceedings and leaves no mark on the tenant's rental history. 

Under the new rules, breach notices and court hearings would become the only avenue for removing problematic tenants, significantly increasing the time, cost and complexity involved for landlords.

"Rent prices are likely to rise in response to the increase in risks and costs to investors," Ms Brown said. "Ultimately, this reform will introduce more cost to the system that will be borne by investors, taxpayers, and tenants."

What could this mean for property investors?

For investors, the immediate takeaway is that nothing changes right now.

The reforms are proposed for implementation in 2027, meaning there is still time for consultation, legislative drafting and further clarification around how the laws will operate in practice.

However, the announcement is already influencing market sentiment.

REIWA says some members are reporting increased investor appraisal activity and discussions around selling investment properties.

From an operational perspective, investors may eventually see:

• More structured tenancy termination processes
• Increased documentation requirements
• Greater reliance on formal breach procedures
• Potentially longer dispute resolution timeframes
• More cautious tenant screening across the industry

As more detail emerges, Rent Choice will continue providing updates to help investors understand how these reforms may affect their investment strategies moving forward.

Additional sources:

There will be no winners with no grounds reform: REIWA. (n.d.). REIWA Public Website. https://reiwa.com.au/news/there-will-be-no-winners-with-no-grounds-reform--reiwa/

Ho, C., & Williams, C. (2026, May 4). WA government to ban no-grounds evictions amid state’s rental housing shortage. ABC News. https://www.abc.net.au/news/2026-05-04/wa-to-ban-no-grounds-evictions-in-housing-policy-shift/106637922

Supply the key to better outcomes for renters, not targeting investors. (n.d.). REIWA Public Website. https://reiwa.com.au/news/supply-the-key-to-better-outcomes-for-renters--not-targeting-investors/