New Victorian Tenancy Laws
New rental laws have just come into effect after being delayed by the pandemic. These new regulations, beginning from 29th March 2021 see a whopping 132 reforms covering everything from rules around starting a tenancy, living in a rental, leaving a rental and repairs and modifications.
Here's a breakdown of some the main changes:
1. Terminology changes.
Landlords will now be referred to as rental providers, tenants as renters and tenancy agreements as rental agreements.
2. The end of no-grounds evictions
To end a rental agreement, rental providers must provide a valid reason such as sale, or the rental provider moving back into the rental property.
3. Notice to vacate changes
Rental providers can issue a notice to vacate if the renter or their visitor endanger the safety or seriously threaten neighbours, the rental provider or their agents, or a contractor or employee of the rental provider or their agent. This is also applicable for renters who intentionally or recklessly causes serious damage to the rented property.
4. Bond obligations
Renters will no longer need the rental provider's permission to have all or part of their bond released. They can apply to the Residential Tenancies Bond Authority (RBTA) and the rental provider will have 14 days to dispute the claim.
5. Rent increases and lease break
Rental providers can only increase rent once every 12 months instead of every 6 months. For fixed-term agreements, rent increases can only occur if the rental agreement specifies the amount or method of the rent increase.
6. Keys
Rental providers must provide a free set of keys for each renter and can only charge a reasonable fee for additional or replacement keys or devices.
7. Rent arrears and non-payment of rent
If a renter falls into arrears but pays back overdue rent within 14 days, any notice to vacate that was issued for that overdue rent is invalidated. However, this applies for the first four occurrences in a 12-month period. If the renter continues to fall into arrears or fails to pay rent a fifth time in the same 12-month period, the rental provider may issue a notice to vacate and apply to VCAT for a possession order.
8. Renting with pets
Renters can now keep pets at a rental property with the rental provider’s consent. A rental provider cannot unreasonably refuse a request to keep a pet. If there is reasonable grounds to refuse permission, a rental provider can apply to VCAT for an order.
9. Making modifications
Renters will be able to make prescribed modifications without the rental provider’s consent and rental providers cannot unreasonably refuse consent to some modifications.
10. Minimum rental standards
Under the new laws rental providers have a duty to ensure their rental property meets the rental minimum standards. Rental minimum standards have been set for door locks, ventilation, vermin proof bins, toilets, bathroom facilities, kitchen facilities, laundry facilities, structural soundness, mould and dampness, electrical safety, window coverings, windows, lighting, heating. Regular checks by licensed professionals are also mandated.
11. Excessive utility bills
Where a renter has received an excessive utility bill due to a hidden fault (such as a leaking water pipe), the rental provider must pay for the costs that exceed the renter's ordinary usage amounts.
Many landlords (now rental providers) are understandably concerned about these new regulations, especially if they own an older house which may not meet the minimum rental standards expectations. Given the incredibly hot market at the moment in Regional Victoria, perhaps now is the perfect time to sell your exisiting investment property and look at building or purchasing a new home or unit in the future. Give us a call on 1300 222 262 and we would be happy to provide you a free, no obligation appraisal for your property anywhere in the Mansfield and Wangaratta areas.
Are you a landlord and your head is swimming after reading this? We can help with that. Understanding all these changes is just one part where DPG can help manage your rental. Our trained Property Management team prides themselves on ensuring everything is taken care of, so you don't have to worry about a thing.
