Home Arts + Culture Will proposed changes to tenancy law favour renters in Victoria?

Will proposed changes to tenancy law favour renters in Victoria?

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Key points:

  • Rental bidding to be banned
  • More secure long-term rental period
  • End discrimination against renters with pets
  • Easier for tenants to make minor modifications to the rental property
  • Bonds to be capped at one month’s rent
  • Faster release of bonds when lease ends
  • Dodgy landlords to be blacklisted

As more Victorians find it more difficult to own a property, over one in four now choose to rent long term.

The Andrews Labor Government feels that tenants need and deserve better protection and, therefore, moves to overhaul renting laws.

The Residential Tenancies Act has been under review since 2015

The Andrews Labor Government wants to make renting fair, with an unprecedented package of tenancy reforms.

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“Only our Labor Government will fix the system and make renting fair for every Victorian,” Victorian Premier Daniel Andrews said.

The Labor Government’s rental fairness package gives tenants more rights, helps them stay on longer leases, makes bonds smaller and fairer, and cracks down on dodgy landlords.

The Government will crack down on rental bidding – a scourge that forces would-be tenants to out-bid each other on rent – and will limit rent increases to once a year to give renters more financial stability.

Renters will get better long-term security by abolishing ‘no specified reason’ notices to vacate, and new restrictions will be placed on ending leases without a reason at the end of a lease when that lease has lasted more than one fixed term.

These measures build on the Labor Government’s introduction of long-term leases to give tenants security.

“Everyone deserves the chance to have a safe, secure and affordable home – whether you own it or not,” Andrews said.

To end discrimination against renters with pets, the Government will give every tenant the right to own a pet, and while landlords will still need to provide consent, they will only be able to refuse in certain circumstances.

It will be easier for tenants to make minor modifications to the rental property, such as installing hooks for picture frames – and there will be faster reimbursements for tenants who pay for urgent repairs.

In a significant cost of living reform, bonds will be capped at one month’s rent where the rent is twice the current median weekly rent – currently equivalent to $760 per week or less, covering the vast majority of Victorian rental households. This reform will also apply to rent that is paid in advance.

The Government will also ensure the faster release of bonds at the end of a tenancy. Under the reform, tenants will be able to apply for the release of the bond without written consent from their landlord, who will have 14 days to raise a dispute before the bond is repaid automatically.

“These changes will crack down on rental bidding, make it easier and faster for renters to get their bond back, and will better hold landlords and agents to account for their actions,” Minister for Consumer Affairs Marlene Kairouz said.

There will be a crackdown on dodgy landlords with the introduction of a landlord and estate agent blacklist available to renters. False, misleading, and deceptive claims by landlords will also be outlawed.

“More people are renting than ever before and for longer – that’s why tenants need a fairer deal,” Kairouz said.

A new Commissioner for Residential Tenancies will be set up to help champion the rights of Victorian renters and give them a voice in future reform of renting laws over the years to come.

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Visit rentfair.vic.gov.au for more information about the biggest rental fairness package in Victorian history.

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