There haven’t been any changes in Victorian tenancy laws for a long time – current rental laws are 20 years old – however, change is afoot.
The Victorian Government has proposed a range of new reforms aimed at giving tenants of rental properties more rights. With more than one in four Victorians renting their home, this could be welcome news for renters.
Pet owners will be especially happy if the proposals are rolled out, as the reforms make it easier to keep your pet in a rented home. The proposed changes also tackle rent increases, bonds, repairs, and will provide greater transparency and security for tenants.
Whether it’s having to give up a beloved moggy or pooch, shelling out more rent again, or putting up with a rubbish shower and nosey landlord, tenants can often get the short end of the stick.
This could be about to change – in Victoria at least – and perhaps the state’s tweaked tenancy laws will trigger similar changes nationwide.
If given the go ahead, the reforms are likely to be introduced this year or early next year. Here’s what you need to know.
The Property Couch pair would welcome the proposed option for longer leases as they’ll offer more security for both landlords and tenants. Picture: Supplied
A blacklist for tenants and landlords
If you rent a property in Australia and have breached tenancy agreements, either by paying your rent late or causing malicious damage to the property, your name may well find its way on to The National Tenancy Database, which is essentially a blacklist containing information about the renting history of certain tenants.
Up until now, there’s been no such thing for landlords. However, under the new reforms, there would be a blacklist for landlords and agents too, giving tenants the opportunity to identify anyone who has breached their responsibilities under the Residential Tenancies Act.
REA’s chief economist, Nerida Conisbee, says rental bidding can mean tenants end up paying more than the market rent. Picture: realestate.com.au
Pricing, payments & a crackdown on rental bidding
When it comes to increasing the rent, landlords will only be able to raise rental payments every 12 months, as opposed to the current six months. Properties will also need to be advertised with a fixed price, and landlords will not be able to accept a higher price due to a crackdown on rental bidding.
“The main concerns being raised about rental bidding are the impacts on tenants, primarily around tenants having to pay more than market rent,” says REA’s chief economist, Nerida Consibee.
Read more about rental bidding here.
With the new reforms in place, landlords in Victoria will no longer be able to charge a bond worth more than one month’s rent when the rent is less than double the median weekly rent (currently $760).
Also, if tenants want to have their bond released they can apply for this without their landlord’s agreement. They can do this up to 14 days (up from seven) before the end of a tenancy, as long as there is no dispute. If tenants are out of pocket from having to pay urgent repairs, they will be entitled to reimbursement within seven days, down from 14.
Greater security & support
One downside to renting is living with the knowledge that you, the tenant, could be turfed out of your home whenever the landlord sees fit. Exacerbating this is the fact that landlords are allowed to end a tenancy without specifying a reason. Under the new reforms, landlords will have to give a valid reason for terminating a rental contract.
Additionally, landlords will be legally obliged to inform tenants about important aspects of the property, including plans to sell or if asbestos has ever been found in the building. New long-term lease arrangements are currently under consideration, which will create greater security for landlords and long-term tenants alike.
The new reforms are bound to be welcomed by pet owners in Victoria. Picture: Supplied
Pets and personal touches
If the proposed changes to Victorian tenancy laws are rolled out across the state, landlords will no longer be able to automatically include a “no pets clause” in rental agreements without having to justify their decision. They’ll also be prevented from unreasonably refusing requests to have pets, provided tenants get the landlord’s written consent first.
Getting the property back up to scratch at the end of the tenancy agreement falls on the tenants, including all cleaning or fumigation. This also applies to any damage to the property that goes beyond reasonable wear and tear, with landlords keen for the government to define this well to avoid expensive disputes when tenants seek to leave.
Finally, good news for anyone who wants to add some personality and colour to their home while renting; the proposed reforms will allow for minor modifications (such as hanging pictures, installing air conditioning or adding reasonable security measures) without the landlord’s consent.
For more from The Property Couch, visit thepropertycouch.com.au or subscribe to The Property Couch podcast, available on iTunes or Android.
The Property Couch provides a general opinion based on current market conditions. These opinions should not be treated as investment advice. Always obtain advice based on your individual circumstances.
