New rental property legislation was introduced to the Victorian Parliament today. Some of these measures are sensible and have been welcomed by the Real Estate Institute of Victoria (REIV), while others could place additional stress and financial burden on rental providers, further intensifying pressure on the current rental market. Many rental providers have already sold, or are in the process of selling their properties due to the costs associated with existing legislation and land tax. With the introduction of further rules and costs, even more rental properties are likely to be put up for sale. While several new measures benefit renters, they fail to provide adequate support for rental providers, who are already struggling with high compliance costs. This will contribute to a shortage of rental properties and exacerbate the housing crisis as the population continues to grow.
The proposed changes include alterations to rent reviews, the removal of no-fault evictions, and extending the notice to vacate period to 90 days. Additionally, there is a proposal to increase penalties for rental providers and agents who advertise properties that do not meet rental minimum standards, which the REIV deems unnecessary.
Another proposed change is the requirement for annual smoke alarm checks and ensuring properties meet rental minimum standards at the time they are advertised, rather than only at the contract signing. This seems reasonable, as it ensures compliance before a tenant moves in and reduces the risk of delayed checks or corrections. We may see an increase in Consumer Affairs staff attending open houses to inspect properties being advertised.
The REIV emphasized that reforms must offer value for rental providers, renters, and the real estate industry as a whole. The Victorian Government should provide incentives for rental providers and more support for real estate agents.