Rental law changes opposed

Last week, Premier Daniel Andrews announced sweeping changes to Victorian rental laws, with all 14 reforms favouring tenants.

The REIV strongly opposes many of these reforms, which will significantly imbalance the private rental market to the detriment of all stakeholders.

These reforms remove important landlord rights and reduce their security over what is a significant financial investment – the median house price in regional Victoria is $385,000, while in metropolitan Melbourne that figure is $822,000.

Under the changes, landlords will lose the ability to end a tenancy in both fixed-term and periodic (month-to- month) agreements. Landlords will also be unable to unreasonably withhold consent regarding pets and minor property modifications while bonds will be capped at the equivalent of four weeks’ rent for all homes below $760 per week.

Despite being heavily involved in the review process for the past two years, the REIV was not informed of the changes until the media had already been advised.

The government’s decision to ignore a major stakeholder makes it clear that they do not value the views and concerns of the supply side, which are crucial in maintaining a sustainable private rental market.

The institute has surveyed thousands of landlords (something the government has not done) with a significant number indicating they would exit the market (17 per cent) or increase rents (80 per cent) if these reforms progressed.

While tenants have applauded these changes, the reality is that these reforms will only make it more difficult for renters to secure a property in the first instance.

Reduced supply of rental properties will result in increased competition for available properties, higher rents and greater landlord screening of applicants.

Given our population is increasing by around 150,000 new residents per annum, the government needs to be encouraging property investment – not reducing its appeal.

It’s also worthwhile noting that Victoria has the lowest proportion of public housing not just in Australia but in the developed world and the government is increasingly dependent on the private market.

To provide feedback on these new reforms, visit www.vic.gov.au/rentfair.