More rental law changes

THE Real Estate Institute of Victoria is often asked if rental bidding is illegal in Victoria and the answer is that it is about to be.

From 1 July 2020, landlords and real estate professionals will only be able to offer a property at a set price and will be prohibited from soliciting higher offers.

However, if a prospective renter offers a rental rate of more than the advertised fixed price, the landlord or real estate professional will be legally permitted to accept it.

Under the new system, it will also be unlawful for rental providers to advertise a property within a range – $300 to $350 per week for example – it will have to be advertised at a set price of, say $325.

As Consumer Affairs Victoria continues to roll out 130 changes to rental laws as part of the Residential Tenancies Act review, is important that renters, landlords and real estate professionals know their rights and obligations under the revamped system.

Demand and competition for rental properties is increasingly strong in regional Victoria where vacancy rates are sitting at extremely low levels which could feed an increase in the practice of rental bidding.

CAV is currently welcoming feedback on the new rental system and is constantly updating relevant information on its website. The REIV is working closely with CAV to advocate for a fair and balanced system as a result of the changes to the rental laws which the Victorian Government enacted last year.

For further information, visit the Consumer Affairs website.