REIV to continue to advocate on Tenancies Act changes

The Residential Tenancies Bill 2018 (RTA) passed the Parliament on 6 September 2018.

At this point we do not know when the Bill will come into effect. Real estate professionals, property owners and renters in Regional Victoria should be aware that the current Residential Tenancies Act 1997 remains in place for the foreseeable future.

The Victorian Government has declared there will be a period of consultation around the regulations, which will sit alongside the RTA 2018 and that could take up to 18 months.

The REIV will continue to advocate on behalf of our members and their clients to ensure the regulations are workable and will be an active and vocal participant in this consultation process.

The REIV campaigned strongly against elements of the legislation which swing the pendulum of rights overwhelmingly over to renters.

It is in everyone’s interests – renters, investors, agents and government – that we have a system that is fair, balanced and practical.

Rental vacancy rates have continued to decline in Regional Victoria over the last 15 years and are now at an all-time low of 1.5 per cent (compared with 2.3 per cent in July 2017 and the current metropolitan rate of 1.9 per cent). There are fears that the RTA 2018 will make it too hard and too risky for landlords to rent their properties out, which could further constrain this already tight rental market.

The changes contained in the yet-to-be proclaimed RTA 2018 include:

• Tenants can bring pets onto a landlord’s property without consent and the landlord has 14 days to take the tenants to VCAT;
• Tenants can make prescribed modifications to property without the landlord’s consent;
• Landlords must upgrade all appliances to meet energy efficiency standards;
• Tenants will have up to five (previously three) opportunities to bring late payment of rent up to date, and
• The 120 day ‘No reason’ Notice to vacate, where the landlord wants their own property back for a reason not specified in the legislation, has been removed.

For more detailed information, please see the RTA Review section of the REIV website.