Consumer Affairs Minister Gabrielle Williams said the six reforms outlined by the government on Wednesday, October 30 would make renting in Victoria fairer.
“Renters’ rights are all about respect — that’s the principle that we are trying to bring to the rental market,” Ms Williams said.
Proposed changes include banning landlords from withholding bond claims without evidence or receipts, removing all remaining ‘no reason’ evictions for fixed-term contracts and banning fees charged on rental payments through third-party channels.
“By banning fees and charges on rental payments and applications, and cracking down on unfair bond claims, we’re putting more money back in the pockets of renters,” Ms Williams said.
Other reforms include prohibiting rental providers from charging applicants a fee for background checks, limits on lease break fees, and mandating spare electronic keys, or fobs, are reasonably provided to tenants when requested.
The government has already implemented more than 130 rental reforms, including property tax changes and new minimum standards for leased dwellings.
Charles L King and Co First National Real Estate director Troy O’Brien said that while the government might mean well when introducing reforms such as these, they could backfire for renters.
“These policies are made with a really good intent, and that is to help the renters, and to assist them and protect them. But what it can do is actually have the reverse effect,” Mr O’Brien said.
Rental supply can decrease as a result of added financial pressures on landlords, who may look to sell their property or take it off the rental market, Mr O’Brien said.
Alternatively, rent increases may be passed on to renters to cover extra costs, which Mr O’Brien said he had seen clients experience following the introduction of enforced minimum rental standards in June.
“When landlords or rent providers cover a significant cost, they’ll either look to reclaim it, or look to exit the marketplace,” Mr O’Brien said.
“In Victoria, particularly, with the land tax increasing and basically doubling, landlords are getting more and more cost.”
More details on proposed reforms are expected as they are introduced to the Victorian Parliament in stages over the next 12 months, with other reforms being considered.
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