Proposed legislation targets excessive rent increases and strengthens protections.
New legislative reforms are set to address excessive rent increases and ensure rental properties meet basic living standards.
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The proposed Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill introduces expanded measures to improve tenant protections and hold landlords accountable for maintaining properties.
Tackling Excessive Rent Increases
Current laws allow renters to challenge rent hikes through Consumer Affairs Victoria (CAV) or the Victorian Civil and Administrative Tribunal (VCAT), but these reviews do not consider the size of the increase. The proposed changes aim to address this limitation, allowing CAV and VCAT to evaluate the magnitude of rent increases and consider factors such as whether essential repairs or improvements have been made since the last rent rise.
These changes aim to ensure tenants are not unfairly burdened by significant rent hikes, especially when properties are not properly maintained.
Stricter Standards for Rental Properties
Currently, rental properties must meet minimum standards when tenants move in, but issues such as mould or structural problems often become disputes after tenants take possession. The proposed legislation would require properties to meet these standards before being advertised for rent, shifting responsibility to landlords and agents to ensure compliance from the outset.
Penalties for advertising non-compliant properties could exceed $11,000 for individuals and $59,000 for companies.
Key Reforms in the Bill
The Bill outlines several significant changes, including:
•Eliminating no-cause evictions.
•Banning rental bidding practices.
•Extending notice periods for rent increases and eviction notices to 90 days.
•Requiring annual smoke alarm safety checks in rental properties.
•Mandating licensing and training for real estate professionals.
•Establishing a dedicated body to handle tenant-landlord disputes.
•Protecting tenant privacy by regulating the handling of personal information in rental applications.
Further reforms under development include capping lease break fees, banning extra charges for rent payments or applications, and preventing unjustified bond claims.
Addressing Longstanding Issues
These reforms are part of ongoing efforts to improve fairness and security in the rental market. By focusing on affordability and living standards, the proposed measures aim to provide renters with better protection and peace of mind. Industry stakeholders and renters are expected to closely follow the progression of the Bill as it moves forward.
