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The state is set to introduce sweeping reforms which aim to “ensure renters get more respect”, including a stricter rental review process and the introduction of maximum penalties for non-compliance with minimum standards.
Premier Jacinta Allan and Minister for Consumer Affairs, Gabrielle Williams, have announced that the Victorian government will introduce the Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill into the state’s Parliament.
This bill will implement a range of reforms and protections for renters that were previously outlined by the Victorian government, and aim to further strengthen the state’s crackdown on “excessive rent increases and dodgy rentals”.
Speaking on the bill’s upcoming submission, Premier Allan said the legislation was aimed at “building more homes for renters to live in” and “legislating more rights so renters get more respect”.
Revised rent review process
Through this reform, the Victorian government will look to expand the list of factors considered by Consumer Affairs Victoria and the Victorian Civil and Administrative Tribunal (VCAT) when assessing the validity of a rent increase.
Although tenants in Victoria are currently able to request a rent review when they believe rental increases are excessive, the state government noted that the size of the increased costs is not a factor that is considered in the process.
The Victorian government further noted that landlords who fail to address necessary repairs in properties that have been previously reported are still able to increase rental costs, leaving tenants with no ability to have these issues considered in a rent review.
“It’s not fair that a renter can cop a 200 per cent rent increase just because they’ve asked for a basic issue to be fixed – so we’re putting the brakes on excessive rent increases and ensuring properties meet minimum standards,” Premier Allan said.
While the specific criterions will be subject to future industry consultation, the state government proposed that the expanded criteria will include the size of a rent increase and any improvements that either have or haven’t been made at a property since the last rental increase.
Cracking down on non-compliance
The Victorian government also announced that the upcoming legislation will require properties to meet the state’s minimum rental standards when they are advertised for a rent, as opposed to when a tenant moves in.
Even though compliance with the state’s 14 minimum rental standards is currently mandated under law, the recent rental inspection blitzes undertaken by Consumer Affairs Victoria have revealed that an increasing number of renters are moving into properties that still require urgent repairs or maintenance to comply with standards on day one.
“New tenants should be able to focus on where they put their couch, not worry about if they need to go to VCAT because the mould in the bathroom that was supposed to be removed after the inspection is still there,” Premier Allan said.
In order to ensure adherence to minimum rental standards, the new legislation will also introduce maximum penalties for rental providers and their agents of more than $11,000 for individuals and $59,000 for companies who advertise or offer to let rental properties that do not meet minimum standards.
A slate of new rental legislation
The bill will also deliver a series of reforms and protections for renters that were previously announced as part of Victoria’s Housing Statement in 2023, and outlined in the state government’s recent spate of housing announcements.
The measures included in the upcoming legislation will notably remove no-fault (or no-cause) evictions, ban all forms of rental bidding, increase the notice period for rent increases and notices to vacate to 90 days, and require rental properties to have yearly smoke alarm safety checks.
In addition to making rental applications easier and introducing obligations around the use, collection and destruction of renters’ personal information, the legislation will also formally establish the state’s Rental Dispute Resolution Victoria (RDRV) system which aims to simplify how renters resolve disputes with landlords without needing a formal hearing.
Moreover, the reforms will also ban third-party businesses, such as rent tech apps, from charging extra fees when you pay your own rent or apply for a property.
The reform will impact real estate professionals by introducing mandatory training, licensing and registration for agents, property managers, conveyancers and owners corporation managers, alongside introducing tougher penalties for real estate agents and sellers who break the law.
Commenting on the upcoming bill’s submission, Minister Williams said the revised legislation is “about making the rental market fairer for everyone”.
“The new legislation will upskill real estate agents, give them clearer rules to follow and provide renters with better protections,” Minister Williams said.
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