By Rachel Eddie
Almost $450,000 worth of fines have been handed out for dodgy rental properties since March as part of a new taskforce to improve standards for tenants before a dispute resolution service promised last year comes into force.
Consumer Affairs Minister Gabrielle Williams on Saturday announced details of Rental Dispute Resolution Victoria (RDRV) and the portable bond scheme, both of which were initially promised in last September’s housing statement.
Consumer Affairs Minister Gabrielle Williams.Credit: Paul Jeffers
While the Greens accused Labor of offering “breadcrumbs” for people struggling in a challenging rental market, the government said more reform was on the way as part of its week-long blitz announcing its expanded housing agenda.
The dispute resolution service will open in June next year under legislation the government plans to bring to parliament next month, to offer tenants an easier and free way to raise issues without having to go through the bureaucracy of the Victorian Civil and Administrative Tribunal (VCAT).
“One of the things that bothered me the most about [that] system was that many renters didn’t even bother getting the help that they needed,” Williams said. “It was such a disincentive for them to even start that, what we know is that they were probably putting up with things that they didn’t need to.”
RDRV – a standalone service that will sit within VCAT – will offer early interventions with a third-party specialist over the phone, face-to-face or online. The government expects 60 per cent of disputes to be resolved this way.
Parties can move to VCAT if an agreement can’t be reached. RDRV can also refer matters to Consumer Affairs for compliance and enforcement.
The portable bonds scheme – allowing tenants to transfer bonds from one property to another when they move to reduce their upfront costs– will not roll out until 2026 following IT testing next year.
Williams also announced that the Consumer Affairs rental taskforce, which began monitoring and inspecting properties in March, had issued 45 fines for a combined total of almost $450,000. Fifteen warnings were issued.
Breaches included failing to advertise a rental property at a fixed price and failing to lodge a bond with the Residential Tenancies Bond Authority.
Mount Waverley tenants Taylor McIntyre and Aaron De Pace said they had to find an extra $3000 when they moved from their former rental in Kew.
“It was quite hard at the time because all of a sudden, you’ve got to try and make up this money to pay for removalists, to pay for bond for the next place, everything like that, so it can be quite stressful,” De Pace said.
The Greens on Saturday renewed calls for a rent freeze and accused Labor of recycling old announcements.
“The rental crisis is breaking people. People are having to make the impossible decision between paying for food and paying their rent, and recycling an old announcement is the best Labor can do?” Victorian Greens renters’ rights spokeswoman Gabrielle de Vietri said.
Shadow consumer affairs spokesman Tim McCurdy said the government’s “re-announcement” of the housing statement from 13 months ago was “bizarre”.
“They love to roll things out with big fanfare, big statements, big headlines,” McCurdy said. “Overpromising and underdelivering again.”
Tenants Victoria chief executive Jennifer Beveridge, who worked with the government on the reform, welcomed the new dispute resolution service.
“Sometimes the hardest thing to get done is something that should be the most simple ... And so, as the minister said, people either put up with it or they end up going to VCAT after many, many months of asking for something to be repaired.”
Beveridge said the advocacy group was still hearing of rental increases of 30 to 50 per cent, often after tenants ask for repairs.
She said requests for repairs and maintenance had been the number one issue for renters over the past year, but more tenants were now asking for help over notices to vacate.
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