Victoria’s housing tenants to lock away long-term leases

VICTORIAN renters will be able to sign standard leases for longer than five years under a state government plan to provide greater security for tenants.

The Andrews Government is undertaking a review into rental laws. Picture: Thinkstock

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VICTORIAN renters will be able to sign standard leases for longer than five years under a state government plan to provide greater security for tenants.

A new standard tenancy agreement will be developed along with a new website to connect renters and landlords who are wanting to lock away long-term leases.

Currently, tenants can sign leases longer than five years but they cannot use the standard tenancy agreement.

The changes, which will take effect next year, will now provide all of the protections in the standard agreement for those wanting five or more years.

Victorian Premier Daniel Andrews. Picture: AAP Image/Lukas Coch

It comes as the Andrews government is undertaking a review into rental laws, which could include the removal of no pet clauses and restricting rental increases to once a year.

Premier Daniel Andrews said tenants wanting a lease longer than five years needed to have the protections in the standard lease agreement.

“Raising a family is stressful enough without worrying about whether you need to move every 12 months. Long-term leases will end that uncertainty,” Mr Andrews said.

“There are 884,000 Victorians who rent, or own a rental property. This change will give renters the chance to put down roots and landlords a more certain income.

“A longer term lease is actually very much harder because the standard lease doesn’t actually exist. It’s not there — all the protections, all the support that you get via those shorter term arrangements are not available if your tenancy agreement is not available for a longer period.”

Mr Andrews made the announcement at the family home of Sharna Beves, who is raising two-year-old daughter Madison in a rental house in Caroline Springs.

“We were in our last rental for 12 years and we only moved because we had a baby and needed a bigger space, but the thought of having to move out of here in 12 months is so much stress,” Ms Beves said.

“It is not a rental to us, this is our home, we want to stay here. We’ve invested money into the place because we want to live somewhere that is nice.”

Consumer Affairs Minister Marlene Kairouz said: “More than 25 per cent of Victorians rent. They should be able to have the security that comes with a long-term lease, and that’s exactly what we’re doing.

“This is about giving Victorian renters and landlords the security they need — the ability to lease a property long-term and a way to help renters find their future home.”

Tenants Union of Victoria policy officer Yaelle Caspi said the announcement was a “good start” to making conditions more secure for tenants.

But it was important the government took a step further by protecting renters from unreasonable evictions as the Residential Tenancies Act review continued.

“As families are more often locked out of home ownership, we are seeing a greater need for security and certainty,” she said.

“This shows the government is reacting to changes in the market.

“But we also need to see an end to ‘no reason’ eviction notices, which are used by landlords to kick out people who have done nothing wrong.”

A survey of landlords state found most ​planned on significantly increasing​ ​rent. Picture: Jake Nowakowski

Real Estate Institute of Victoria chief executive Gil King said​ while the organisation “generally supports” the government’s move, there were “challenges with long-term leases​​” such as maintaining an investment property to an adequate standard over a long period of time, which would need to be considered.

He said​ ​other changes being considered in ​the wider rental law review were likely be less positive for the rental market​ — including ​the possible removal of a landlords’ ​right to refuse pets and terminate a lease for no specified reason, and allowing tenants to make non-structural changes to properties without landlord permission​. ​

Mr King said an REIV survey of landlords from across the state found four in five ​planned on significantly increasing​ ​rents ​and ​17 per cent said ​they’d ditch their investment properties ​if ​certain proposals ​were adopted​.

“The changes will have an overall negative impact on the Victorian rental market, especially on those who can least afford it,” ​he said.

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