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Some aspects of the new rental legislation have been welcomed, while the industry body warned that other measures could put additional strain on Victoria’s rental market.
The Real Estate Institute of Victoria (REIV) has responded to new rental legislation introduced in the Victorian Parliament, expressing both support and concern over measures outlined in the Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill.
The proposed reforms, tabled on 27 November by Premier Jacinta Allan and Minister for Consumer Affairs Victoria (CAV), Gabrielle Williams, include changes aimed at strengthening tenant protections and raising compliance standards for rental properties.
While the REIV has welcomed several measures, it warns that others could exacerbate the state’s already strained rental market.
Among the REIV’s concerns are provisions to expand factors considered in rent reviews by CAV and the Victorian Civil and Administrative Tribunal (VCAT), remove no-fault evictions, and extend notice-to-vacate terms to 90 days. According to the institute, these changes risk deterring investment in rental properties at a time when supply is critically low.
The REIV also opposes increases in maximum penalties for landlords and agents advertising properties that fail to meet rental minimum standards, arguing existing penalties are sufficient.
Despite these criticisms, the institute has praised several aspects of the bill including mandatory annual smoke alarm checks and the requirement for rental properties to meet minimum standards before being advertised. Other supported reforms include mandatory training for real estate professionals and expanded licensing requirements for owners and corporation managers.
Kelly Ryan, chief executive of the REIV, highlighted the implications of the legislation.
“The new measures introduced to Parliament today will have a mixed effect on Victoria’s property ecosystem. Many measures benefit renters but don’t do enough to support rental providers, many of whom are already being forced to pull rental stock from the market due to high compliance costs,” Ryan stated.
She emphasised the need for a balanced approach to maintain a functional rental market.
“A healthy rental ecosystem relies on mutual benefit and value for renter, rental provider and the real estate industry. To achieve this, the Victorian government must start focusing on incentivising rental providers and providing greater support to real estate professionals.”
Ryan also acknowledged the government’s decision to defer the introduction of new energy efficiency standards, calling it a positive outcome of industry consultation.
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