Victorian government’s rental reforms passed: Two years to come into effect
Harsh new rental reforms flagged by the Victorian Government have finally passed parliament. But there’s a catch.
Victorian tenants will have waited more than 770 days for the state government to protect them from rental bidding and dodgy landlords by the time legislation comes into effect this November.
The state government on Thursday this week passed legislation for the total ban on better-off tenants making offers to go beyond advertised weekly rents in order to beat more financially strained households to homes, despite first mooting the policy in September 2023.
It was among a raft of rental reforms including new laws that will stop landlords ousting tenants without a reasonable cause, but none will be enforceable until at least November 1.
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This means tenants will have waited at least 773 days for the changes they were promised if the legislation is put in force on November 1.
Under the new laws, landlords will lose their right to evict renters without a genuine reason and will have to provide an extra 30 days to tenants to find a new home.
All types of rental bidding will be banned and the notice period given to tenants to leave a rental will increase from 60 days to 90 days.
A new standardised application form for renters and real estate agents will also be introduced, and it will become an offence if tenants are charged extra fees by rent technology platforms when applying for a rental or paying their lease commitments.
Rental properties will have to meet minimum standards from when they are advertised and annual smoke alarm safety checks will become mandatory.
Victorian government Consumer Affairs minister Nick Staikos said the state had the strongest rental protections in the country and this built on their significant work to make renting fairer across the state.
“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,” Mr Staikos said.
“Because it’s only fair that renters are treated with respect.”
Tenants Victoria chief executive Jennifer Beveridge said they welcomed the new measures that were now law, which were flagged in the Victorian government’s Housing Statement in 2023.
“They are a step change in strengthening the rights of renters – who make up almost 30 per cent of Victorians – in their homes.
“After all, housing is an essential service, a public good and a human right.”
The Bill also legislated the Rental Dispute Resolution Victoria (RDRV), a separate entity to the Victorian Civil and Administrative Tribunal (VCAT) for resolving issues about rental properties.
Ms Beveridge said Tenants Victoria had long advocated for a fairer, faster and less formal dispute resolution system for most rental disputes.
But Real Estate Institute of Victoria (REIV) president Kelly Ryan said although these measures would provide additional benefits and security for tenants, they added another layer of complication for landlords.
“It does take away again so more control that they have over one of their biggest assets,” Ms Ryan said.
“There’s a risk here that there’s unintended consequences as a result of trying to give renters more security.”
She added that the REIV had already seen a loss of rental properties throughout the state.
“I think if you ask a renter if they’ve got the choice of picking a rental property that’s within their budget, within their location, they would probably prioritise that over having no options whatsoever,” she said.
“We’re just seeing too many people turned away from properties.”
In the year to September 2024, the Residential Tenancies Bond Authority reported a more than 24,000 drop in active rentalbonds, equating to a similar loss of rental homes in the market.
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sarah.petty@news.com.au
Originally published as Victorian government’s rental reforms passed: Two years to come into effect
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