Landlords hit with more rules, hefty fines under rental crackdown

Landlords are set to be hit with more regulations and will face hefty new fines of up to $59,000 if they advertise or rent dodgy properties, under the Allan government’s latest rental reforms.

Landlords are set to be hit with more regulations and will face hefty new fines of up to $59,000 if they advertise or rent dodgy properties that don’t meet minimum standards.

The Allan government on Wednesday announced more reforms for renters, giving them more power to challenge excessive rent increases through Consumer Affairs.

Currently, there are limited grounds which can be considered by the rent review process and the size of a rent increase itself isn’t taken into account.

Now, Consumer Affairs will be boosted with more powers so that when tenants challenge an increase, the rent review will consider the size of the rent increase, or whether the landlord has or hasn’t made improvements at the property.

It will also become an offence for landlords to advertise properties for rent if they fail to meet minimum standards.

Premier Jacinta Allan says the government is putting the brakes on excessive rent increases. Picture: Valeriu Campan

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Individual landlords and real estate agents who do put homes on the market will be fined more than $11,000, while companies will face penalties of $59,000.

Premier Jacinta Allan said tenants should be able to focus on where they put their couch, rather than whether they need to go to VCAT because there is still mould in the bathroom.

Ms Allan said it wasn’t fair for renters to cop a 200 per cent rent increase just because they had asked their landlord to fix a basic issue.

“We’re putting the brakes on excessive rent increases and ensuring properties meet minimum standards,” she said.

Consumer Affairs Minister Gabrielle Williams says the new legislation will provide renters will better protections.

Consumer Affairs Minister Gabrielle Williams said the reforms will make the rental market fairer.

“The new legislation will upskill real estate agents, give them clearer rules to follow and provide renters with better protections,” she said.

Consumer Affairs Victoria executive director Nicole Rich said 7400 Victorians had reached out for help to challenge unfair rent hikes in the past financial year.

“In about one fifth of the cases we are finding that under the current laws, they are excessive,” she said.

Last month, the government embarked on a rental crackdown where they announced:

– 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.

Originally published as Landlords hit with more rules, hefty fines under rental crackdown