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Since the state’s renting taskforce was established in March of this year, Victoria reported that it has fined rental providers and real estate agencies more than $450,000.
The Victorian government’s renting task force has been monitoring the market and inspecting properties across the state over the year, with fines being issued for rental offences such as not advertising a rental property at a fixed price and not lodging a bond with the Residential Tenancies Bond Authority.
Many of these fines are the result of “inspection blitzes” that the taskforce has carried to areas with lots of renters such as Fitzroy North and Clayton. Inspectors from the agency are on the lookout for any breaches to minimum standards for safety and livability, with more blitzes reportedly scheduled before the year’s end.
A fine is not the first course of action, however. Once the taskforce finds a property that fails to meet the minimum standards, the organisation works with the respective property agent and rental provider to ensure that necessary repairs are completed so that a renter can move in.
However, if a property isn’t repaired before a renter moves in, it is then considered an offence for which penalties apply.
The record level of fines were announced by the state’s consumer watchdog as it rolled out two important updates for renters, which the agency said are intended to give renters a “fairer go”.
A new system for resolving rental disputes
Victoria’s Minister for Consumer Affairs, Gabrielle Williams, also announced the new Rental Dispute Resolution Victoria (RDRV) system, which aims to simplify how renters resolve disputes with landlords without needing a formal hearing.
The RDRV will enable renters to access a free, public dispute service that will offer consultation with dispute resolution experts either via phone call, online or in person, for simple disputes such as “repairs, maintenance, damage, bond claims or rental increases”.
With the government expecting more than 60 per cent of disputes to be resolved through RDRV, Minister Williams said that the system “will provide a faster, fairer and cheaper avenue for dispute resolution”.
Legislation is currently set to be introduced in November that will make orders at RDRV “binding and enforceable”, before the service is scheduled to begin its work in mid-2025.
RDRV will sit within the Victorian Civil and Administrative Tribunal (VCAT) and will also refer cases to Consumer Affairs Victoria for compliance and enforcement action.
Weighing in on the system, Tenants Victoria CEO, Jennifer Beveridge, emphasised that “renters need to be able to resolve rental disputes quickly and fairly when they arise”.
“A service like RDRV will be better able to respond to the most common type of rental disputes, avoiding long waits and unnecessary costs for people exercising their tenancy rights,” Beveridge said.
Portable bonds scheme
Minister Williams also announced the implementation of a portable scheme which will enable the state’s renters to transfer their previous bond to a new property when moving.
“Our portable bond scheme is about making life easier for renters, relieving the stress of having to pay the bond on your new home before you’ve received the bond back for the home you’re leaving,” she said.
The portable bond scheme’s new IT system is expected to begin its testing phase in 2025, ahead of its future formal rollout.
This reform in Victoria also follows the announcement earlier this year of upcoming portable bond schemes which are set to be implemented across both NSW and Queensland.
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