Premier Jacinta Allan introduces new reforms to protect renters

Landlords will lose their right to evict tenants without a genuine reason and the cost they impose on renters who break a lease will soon be capped under a raft of new Allan government reforms.

Landlords will lose their right to evict tenants without a genuine reason and the cost they impose on renters who break a lease will soon be capped under a raft of new reforms.

The new rights for renters comes as Melbourne sits on the cusp of losing its place as the second-biggest market for property investors with Brisbane hot on its heels.

The Allan government will on Wednesday unveil six new reforms – including forcing landlords to prove why they intend to not release a bond payment – in a bid to provide renters with sweeping new rights.

Premier Jacinta Allan said the crackdown will make renting fairer for tenants. Picture: Nadir Kinani

The crackdown will include:

– PENALTIES for landlords that withhold bonds but fail to provide photographic evidence of damaged property and the receipts to outline repair costs, subject to further policy work;

– ENDING no fault evictions to crackdown on landlords removing tenants only to put the property straight back onto the market with increased rent;

– CAPPING the cost of breaking a lease, meaning renters will only pay one week’s rent for each remaining month of their contract, up to a maximum of four weeks;

– BANNING real estate agents from charging prospective tenants with the cost of conducting a background check on their rental history as part of an application;

– REMOVING the hidden fees and charges which exist on the third-party apps that tenants use to pay their rent; and

– MANDATING that landlords provide an additional electronic key or security fob on request.

The reforms will be introduced into the Victorian parliament in stages over the next year, with legislation to ban unreasonable evictions to commence this year.

Tenants will still be able to be evicted if they cause damage, fail to pay rent or if the owner wants to move back in.

Tenants Victoria CEO Jennifer Beveridge has welcomed the changes.

But Tenants Victoria CEO Jennifer Beveridge said the measures – particularly the no-reason evictions ban – will “better protect the rights of renters”.

“It puts them on a more even footing to request repairs, for example, in the knowledge that rental providers cannot ask them to leave without a reason under the law,” she said.

Premier Jacinta Allan flagged that further reforms are also on the table.

“Renters’ rights are all about respect – that’s the principle that we are trying to bring to the rental market through more than 130 reforms, and that’s why we are leading the nation on it,” she said.

“We’re also building more homes, so there’ll be more properties available for you to rent where you want to live – near the things you need, the lifestyle you lead, and the people you love.”

Premier Jacinta Allan has flagged more reforms are on the table. Picture: Nadir Kinani

It comes as Australian Bureau of Statistics data, analysed by Money.com.au, has revealed Victoria made up about 23.3 per cent of all investors loans in the past year, while the sunshine state accounts for 23 per cent.

It’s prompted warnings that Queensland could soon dethrone Victoria’s title as the nation’s second-biggest investor market behind Sydney, as many investors look elsewhere for tax reprieve.

New PropTrack research has revealed Melbourne’s total number of rental listings on realestate.com.au had increased by 17.3 per cent year-on-year in September, but remained historically low with listings 18.5 per cent below the decade average to September 2022.

PropTrack economic research director Cameron Kusher said there was certainly stronger growth in investor lending in Queensland than in Victoria.

“People have realised that they can invest where they like and people that would have invested in Victoria are investing elsewhere,” Mr Kusher said.

“We are still seeing a heightened level of investors selling in Victoria, whereas it’s easing off a little bit in some of those other states.”

However, he added that from an affordability perspective, Melbourne was a lot more appealing as a prospective homebuyer and as a renter.

The city’s median rental price in September was $570 a week compared to Brisbane which was $620, Sydney’s at $730, and Adelaide’s at $580.