The Victorian Government said the reforms made the state a national leader in renters’ rights by increasing safeguards for hundreds of thousands of renters.
“More Victorians are renting than ever before, and these changes will give renters greater security and stability,” Consumer Affairs Minister Nick Staikos said.
Rental bidding has been banned, making it illegal for agents to accept higher amounts than what is advertised, and all properties must meet minimum standards before or when an offer to let is made.
No-fault evictions are outlawed, and notice periods for rental increases and certain notices to vacate have increased from 60 to 90 days.
Real estate agents need to ensure information provided by renters in applications is protected, and smoke alarms must be installed properly and tested every 12 months.
While supportive of reforms to protect fundamental renter rights, the Real Estate Institute of Victoria has called on the government to stop “over-regulation”.
It warned the sheer volume of obligations imposed on rental providers had reached a tipping point, which may worsen existing pressures on the rental market.
“The ongoing shortage of rental property shows that it is time to shift focus on incentives for rental providers to stay in the market,” REIV chief executive Toby Balazs said.
Tenants Victoria welcomed the reforms, highlighting the no-fault evictions, rental bidding ban and extended notice periods as particular wins.
Chief executive Jennifer Beveridge said despite the achievements, further work was necessary to reduce dwelling prices.
“These reforms recognise that renters deserve security and stability in their homes," she said.
“Protections are essential, but we still need action on rental affordability.”
Recent data from the National Shelter-SGS Economics and Planning revealed rental affordability in regional Victoria had dropped to record lows.
The 11th annual Rental Affordability Index found the average renting household in the regions now spent 28 per cent of its income on a median rental.
Further Victorian rental reforms are expected from the government next year, including a new standardised rental application form and abolishment of double bonds.
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