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Victorian real estate agents, investors, and property managers are now subject to stricter regulations as the state’s Parliament passes new legislation to protect renters.
New rental laws have passed Victorian Parliament, delivering a slate of reforms that will increase renter protections and oversight of the real estate sector in the state.
The Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024 was tabled in Parliament on 27 November 2024, and included changes aimed at strengthening tenant protections and raising compliance standards for rental properties.
Minister for Consumer Affairs, Nick Staikos, said the new reforms would further strengthen the Victorian government’s previous rental reforms.
“Victoria has the strongest rental protections in the country and this builds on our significant work to make renting fairer across the state,” Staikos said.
No-fault evictions and rental bidding out in Victoria
The new laws notably ban no-fault evictions, meaning tenants cannot be asked to vacate a property without a valid reason.
Similar to the laws passed last year around no-fault evictions in NSW, the list of reasons to ask a tenant to vacate is expected to include breaching the lease agreement, damage to the property, or for the owner to move into the property.
The new reforms will also ban landlords from engaging in rental bidding by accepting higher amounts of rent than the advertised price, and raise the notice period for rental increases and notice to vacate from 60 days to 90 days.
Under the new legislation, it will also be an offence for renters to be charged fees by rent tech platforms when making a rental application or paying their rent.
A new standard application form for renters will also be introduced, which the state government said would make it easier for both renters and real estate agents to apply for a property.
“We’re banning fees for rental applications or payments, lengthening the notice period for rental increases and notices to vacate, and banning all types of rental bidding – because it’s only fair that renters are treated with respect,” Staikos said.
Oversight of the real estate sector increased
Real estate agents will now need to ensure that they protect the personal information that renters provide in their applications, and adhere to privacy requirements around the use, disclosure, and collection of information.
Agents, property managers, owners’ corporations (OC) managers, and conveyancers will also now be required to register and participate in ongoing professional development to maintain their registration.
The penalties for agents and sellers who break the law have also been increased to a maximum of $47,422.
The penalties will apply to offences such as underquoting and making false and misleading representations during the property sale process.
Additional reforms in the bill will mandate annual smoke alarm safety checks for all rental properties and give the director of Consumer Affairs and Victorian Civil and Administrative Tribunal (VCAT) additional powers when considering rent increase reviews.
Properties will also now have to meet minimum standards for rental properties when they are advertised for rent, as opposed to just when the tenant picks up the keys.
These new laws are set to come into effect in November of this year, with additional reforms announced last October to be introduced in a bill later this year.
The Real Estate Institute of Victoria (REIV) welcomed some of the reforms passed through the Victorian Parliament.
REIV CEO, Kelly Ryan, said that protecting renters is essential to create a healthy rental ecosystem.
“We’re pleased with a number of the introduced reforms, like mandated yearly smoke alarm checks and the requirement for properties to adhere to rental minimum standards at the point they are advertised rather than on contract signing,” Ryan said.
The CEO also supported the introduction of increased training, licensing, and registration requirements for real estate industry professionals, which she said was “crucial” to maintaining the standard of related services in Victoria.
Nevertheless, the REIV raised that the repeal of no-fault evictions and the extension of notice of rent increases and notice to vacate periods reforms may discourage rental provider investment in the already challenged Victorian rental sector.
Ryan shared her view that a more balanced rental market regulatory regime which fairly accommodates the interests of renters, rental providers and real estate professionals would be “key” to addressing Victoria’s housing supply issues.
“Rather than continually increasing the regulatory burden for rental providers at a time when high compliance costs are already forcing many out of the market, the Victorian government should focus on supporting them to ensure adequate supply of rental property,” Ryan concluded.
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