State pledges ban on no-fault evictions, better protections for renters

BANS on no-fault rental evictions and caps on the cost of breaking a lease are among a raft of rental reforms last month proposed by the Victorian government.

Set to be introduced in stages over the next 12 months, the state government has pledged to make renting fairer by banning third-party “rent tech” apps and real estate agents from charging extra rental fees regardless of the payment method used, preventing background check fees being passed onto renters and ensuring renters living in apartments are able to request an additional electronic key or security fob.

Dodgy bond claims have also been put under the microscope, with the government promising to legislate new requirements for landlords to provide evidence that any damage has been properly recorded and costed to prevent renters paying for repairs that “aren’t real”, while financial penalties will be imposed on those who do the wrong thing.

Under the reforms, no-fault evictions for fixed-term rental agreements will also be banned, preventing renters from being kicked out without a valid reason and landlords evicting tenants to increase the rent.

However, tenants can still be asked to move out for not paying rent, causing damage or if the owner wants to move back into the property.

The government has said it still needs to consult with renters and the industry before legislating an appropriate limit on lease break fees, but the cap could be as high as four weeks’ rent.

Minister for Consumer Affairs Gabrielle Williams said renters’ rights were all about respect.

“That’s the principle that we are trying to bring to the rental market through more than 130 reforms and that’s why we are leading the nation on it.

“By banning fees and charges on rental payments and applications, and cracking down on unfair bond claims, we’re putting more money back into the pockets of renters.”

Tenants Victoria chief executive officer Jennifer Beveridge welcomed the measures to better protect the rights of renters, who she said make up almost 30 per cent of Victoria’s population.

“Housing is an essential service and a human right,” she said.

“Extending the ban on no-reason evictions gives renters more security. It puts them on a more even footing to request repairs, for example, in the knowledge that rental providers cannot ask them to leave without a reason under the law.”

As part of the reforms, the state government has also announced plans to establish a free public dispute resolution service to give renters an easier way to resolve disputes with their landlord.

The new Rental Dispute Resolution Victoria will sit within the Victorian Civil and Administrative Tribunal, is expected to be able to resolve more than 60 per cent of disputes and will start its work in mid-2025, with legislation to be introduced to Parliament this month.

Ms Williams said the RDRV service would provide a “faster, fairer and cheaper avenue for dispute resolution”, while Ms Beveridge said the service would be better positioned to respond to common rental disputes, helping to avoid “long waits and unnecessary costs for people exercising their tenancy rights”.

A portable bond scheme is also set to be implemented, allowing renters to transfer their previous bond to a new property, rather than finding themselves out of pocket for two bonds at once when moving.