New rental laws 29th March 2021

Guide to rental law changes in Victoria - Consumer Affairs Victoria

Well, here we are just over 14 days into the new rental laws that came into effect on the 29th March 2021

This had been held back from 2019 due to COVID and the end of the rental assistance scheme. So what has it meant to the average person.

Let’s start with the landlord who now is to be referred to as “rental provider” who now must present a property in a standard that must meet new guidelines.

https://www.consumer.vic.gov.au/housing/renting/changes-to-renting-laws/resources-for-practitioners/rental-providers-and-estate-agents-getting-ready-for-the-new-renting-laws

Here are just a few additional laws.

  1. An electrical and gas check must be carried out by a qualified trades person every two years. $700 approx, in addition to the $100 per year for smoke alarm testing.
  2. We can’t ask the renter (previously called tenant) if they have any issues in not receiving previous bond return
  3. They have to be notified if the Rental Provider (RP) has engaged an agent to sell the property prior to signing
  4. Any removal of mould/rising damp in the past 3 years and provide documents to.
  5. Supply Renter with a copy of Owners Corp Rules which effects the property
  6. Renters can execute there own urgent repairs to the value of $2500 if not responded by agent or RP urgently. This must be paid pack to tenant within 7 days.
  7. If agent wishes to take photos for new lease or sale, they must give renter, 7 days written notice
  8. Renter can object to photos
  9. Renter must have 14 days notice if going to be sold and only allow 2 entries in a week and an amount of half a days rent or $30 “for each inspection”
  10. Renters no longer can be given notice to vacate for any reason.
  11. Renters can only be given end of fixed term notice in the first year of the tenancy. 90 days notice to coincide with the end day or a day later. They can then vacate within 14 days with no penalty.
  12. Late payments will be issued to renter as a 14 day notice. If they pay the entire overdue amount, notice is withdrawn. If the renter receives 5 notices within 1 year.. note 1 year.. the 5th notice will become a valid notice to vacate whether or not overdue rent is paid and the application to VCAT for possession continues. If the 5th notice falls outside of the year, it becomes the start of another 4 notices.
  13. Renter can apply to RTBA to have all or part of their bond released. Previously a joint claim by agent and renter. 14 days release but RTBA will notify agent as soon as renter applies so any dispute can be looked at.
  14. Heating and cooling must be supplied in a living area.
  15. Water saving devices must be fitted to all showers and toilets.
  16. All lighting must be power saving led or similiar
  17. Renters can replace curtains ( but reinstall at end of lease)
  18. Apply to paint walls/ceiling etc
  19. Apply to have a pet ( VCAT has only rejected one application to date)
  20. Etc, etc etc.

It is estimated that the new laws will add additional days of paperwork for every property being handled by the property managers and additional handling of renters requirements and issues with the properties.

In one or two cases RP’s have instructed renters directly to only use certain trades persons and lists have been provided.

It will take some time between RP’s and renters and agents to sort through the new jungle and how many RP’s will just say enough and sell to buy easier investments such as new apartments/townhouses, as they are all new. Time will tell.