New Victorian Tenancy Law Changes

Originally set to enter into effect on 1 July 2020, the start day of the Residential Tenancies Amendment Act 2018 was postponed indefinitely due to the coronavirus pandemic. While several of the changes have currently been applied, Consumer Affairs Victoria (CAV) revealed that all changes will certainly be applied by 29 March 2021.

There are 132 reforms in total. Below's a breakdown of the main changes in the brand-new VIC domestic tenancy laws.

1. Terminology modifications
The new VIC domestic occupancy legislations refer to landlords as rental providers, tenants as renters, tenancy arrangements as rental arrangements, and rooming house proprietors as rooming house operators. The listed below changes will certainly show the upgraded terms.

2. Completion of no-grounds expulsions
To end a rental arrangement, rental providers have to supply a valid factor such as sale, change of use or demolition of the rental home, or the rental provider moving back right into the rental property. For modification of use, rental providers must connect documentary proof to a notice to leave, as specified by the Director of CAV.

3. Notice to leave changes
Rental providers can provide a notification to vacate if:

The occupant or their site visitor threaten the safety and security of neighbours, the rental company or their agent, or a specialist or worker of the rental company or their representative. The occupant or their visitor has seriously endangered or frightened the rental service provider or their representative, or a service provider or staff member of either the rental company or their representative. An occupant or their site visitor, by act or omission, purposefully or recklessly triggers significant damage to the rented home, including to any security tools or common locations.

4. Restriction on rental bidding
Progressing, rental suppliers and also representatives are outlawed from inviting rental proposals as well as can only advertise or supply rental homes at a set price.

5. Where as well as just how rental fee is paid
While any type of technique for lease repayment can be specified in a rental arrangement, the rental service provider has to provide at the very least one accessible, fee-free approach of repayment and also need to permit payments by means of Centrepay. Rental providers must additionally disclose any type of prices connected with the nominated method prior to the occupant going into the arrangement.

6. Added openness and protections for tenants
The new reforms will increase transparency and securities for tenants. Rental companies and representatives can not:
Encourage someone to become part of a rental agreement by making deceptive or false representations. Demand unacceptable info in a rental application. Unlawfully victimize tenants i.e. declining to rent a residential or commercial property to an applicant, issuing a notice to abandon or establishing approval for special needs relevant adjustments. Rental service providers as well as agents can just utilize personal information revealed in a rental application to evaluate the applicant's viability as a renter. Furthermore, tenants can request a cost-free copy of their personal details provided on a renter database when every 12 months.

7. Bond commitments
Tenants will certainly no more need the rental company's approval to have all or component of their bond launched. They can put on the Residential Tenancies Bond Authority (RTBA) and the rental company will have 14 days to dispute the case.
In long-lasting contracts of more than five years, rental service providers can ask for an additional bond if the renter has lived at the rental home continually for five or more years, as long as the rental company gives at 120 days' created notification. It will be harder for rental suppliers to ask for a bond or lease in advance of greater than one month's lease as the rental price threshold has been raised.

8. Rental fee boosts and lease break
Effective 19 June 2019, rental companies can just increase rent when every one year rather than every 6 months. This requests leases participated in on or after 19 June 2019.

Below are some other changes to rent boosts and lease break:

For fixed-term agreements, rental fee increases can only take place if the rental agreement defines the amount or technique of the rent rise. When making a compensation order for lease break, VCAT should consider the extreme hardship the occupant may have suffered because of an unforeseen adjustment in scenarios, if the arrangement had proceeded. Certain circumstances such as being approved into social housing permit renters to give 14 days' notification of purpose to leave without paying lease break costs.

9. Ending fixed-term agreements
For fixed-term agreements of less than five years, rental providers can only release a notice to leave at the end of the very first fixed-term.
Moreover, a notification to abandon for the end of a fixed-term arrangement can be flexible. It can define a date on or after the end date specified in the contract.

10. Rental fee debts and non-payment of lease
If an occupant falls into debts yet repays past due rental fee within 2 week, any kind of notification to vacate that was issued for that past due rental fee is revoked. Nonetheless, this requests the initial four events in a 12-month period.

If the renter continues to fall under arrears or fails to pay rent a 5th time in the exact same 12-month duration, the rental provider may issue a notification to vacate and use to VCAT for a belongings order.

11. Renting out with Pets
Starting 2 March 2020, tenants can now keep family pets at a rental building with the rental supplier's consent. A rental supplier can not unreasonably reject a request to maintain a pet. If there is sensible premises to refuse approval, a rental carrier can relate to VCAT for an order.

Note that these regulations do not put on family pets currently existing prior to 2 March 2020. Discover more concerning pets as well as renting below.

12. Making modifications
Tenants will be able to make recommended adjustments without the rental carrier's authorization as well as rental providers can not unreasonably reject consent to some modifications. The full listing of suggested adjustments will certainly be made a decision by April 2020, complying with public consultation.

13. Minimum rental criteria
Rental carriers must ensure their rental property satisfies the minimum rental criteria connected to facility, security and personal privacy before a tenant relocates, as well as problem coverage is called for despite whether a bond is taken.
Note that the last list of minimum criteria will certainly remain in the Residential Tenancies Rules 2020, which will certainly be made before 29 March 2021.
If the rental residential or commercial property does not satisfy the minimal rental criteria, the tenant can terminate the rental agreement before they relocate or they can ask for an immediate repair any time after they relocate.

14. Urgent repairs
Under the brand-new reforms, immediate fixings consist of replacements and repairs relating to air conditioning, safety and security tools, as well as any fault or damages that makes the rental residential property risky or uninhabitable.
The standards for urgent fixings will certainly be issued by the Supervisor of CAV to make clear durations. The cash limit for immediate repair services repayment has been enhanced. The rental supplier must repay the renter for the affordable cost of urgent repair services within seven days of the occupant giving created notification. For non-urgent repair work, renters can use straight to VCAT if the rental company has not executed the notified repairs within 14 days.

15. Protection for family and individual violence victims
Targets of family members and also personal physical violence will have the ability to end their occupancy to ensure they aren't held responsible for the financial debts of the perpetrators.

In case an occupancy is ended because of household or personal physical violence, rental carriers as well as their representatives are banned from listing the target on a household tenancy database.

In addition, VCAT can be chosen to offer papers on a criminal of family or personal physical violence as well as have to listen to household or individual physical violence associated applications within 3 organization days.

16. Rental non-compliance register
In addition to VCAT being able to buy the agent divulge the rental provider's information for the objective of legal proceedings, rental carriers discovered by VCAT to have devoted an offense under the Residential Tenancies Act 1997 will certainly have their name, rental residential or commercial property address as well as nature of their offense detailed on the CAV rental non-compliance register.

17. Formalising and imposing rental contracts
Under the brand-new VIC household tenancy legislations, VCAT can formalise rental contracts as well as impose anonymous rental agreements:
A renter can use to VCAT for an order needing the rental provider to go into a composed rental agreement with the tenant if a casual rental agreement already exists
If the occupant has actually authorized the rental contract as well as the rental provider has actually not authorized, but has approved lease, the contract is enforceable

18. Long Term leases
Efficient 1 February 2019, occupants and rental companies can go into a fixed-term rental contract for longer than five years however should utilize the recommended type to do so. If the lasting lease agreement is non-compliant, a tenant can give a rental supplier 28 days' notification of objective to vacate.

When the fixed-term duration ends, the agreement will automatically shift to a routine agreement unless the renter and also rental provider accept prolong the term. Rental suppliers can also call for an added bond every five years in a lasting lease, as long as they offer the occupant 120 days' notice.

Last but not least, after completion of the very first fixed-term period, a rental provider can offer a tenant under a lasting lease a fixed-term notification to leave.

19. Exemption for existing rental agreements
For existing rental agreements signed before 1 July 2020, rental providers and tenants will certainly be excluded from several of the new rental laws until that arrangement is terminated and a new contract is signed.

When do these new rental regulations enter into effect?
Some of the reforms have actually currently been applied, yet the remainder of the brand-new VIC domestic tenancy legislations will certainly come into result by 29 March 2021.

Note that the Victorian Federal government has actually replicated a small number of arrangements relating to family physical violence and rental contracts from the Residential Tenancies Change Act 2018 right into the new laws dealing with the moratorium on expulsions for non-payment of lease because of COVID-19.

To find out more, please visit CAV and Victorian legislation:

All changes to VIC household tenancy legislations