REIV release 30 January 2019
Late last year the Andrews Government passed the Residential Tenancies Act. The new Act is the most comprehensive change to residential tenancies in 20 years.
It is a very complex piece of legislation. It is very important to remember that the Act has not come into effect yet. This means the Residential Tenancies Act 1997 remains the law.
The Government will be working with REIV and other stakeholders to develop a range of Regulations that sit alongside the Act and make it workable and understandable. This process has not started yet and will take some time. The Government has indicated that it expects this process could take up to 18 months, as such the new Act may not come into effect until as late as July 2020.
The REIV is working with the Government and Consumer Affairs Victoria to ensure this process is timely but also comprehensive – it’s important we get the Regulations right. Remember, we are in the box seat.
Once the Regulations are in place, the REIV will provide training to members on the changes to ensure that members have accurate information.
7 September 2018
The Residential Tenancies Bill passed the Parliament on 6 September 2018.
The commencement date of the Bill has yet to be proclaimed. There will be a period of consultation around the regulations which will sit alongside the legislation 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.
The current Residential Tenancies Act 1997 remains in place for the foreseeable future.
The REIV campaigned strongly against elements of the legislation which swing the pendulum of rights overwhelmingly over to renters.
Our main areas of concern are:
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Proposed in RTA Bill |
REIV Position |
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A tenant can bring a pet to your property without your consent. You have 14 days to take the tenants to VCAT. Could take six (6) months for the pet to be removed. Pet could damage your property. |
The Landlord must give consent. And where the parties have agreed to a pet, there should be a pet bond. |
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Tenant can make modifications to property without landlord's consent. These are defined in the legislation, nonetheless, one unintended consequence relates to warranties. |
No modifications or urgent repairs are to occur without the landlord's prior consent. |
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Landlords to upgrade all appliances (white goods, fixures and fittings, heating and cooling) to meet energy efficiency standards. While the standard has not been defined, the landlord is required to comply immediately. Failure to do so means the landlord will be liable for the tenant's excess charges. |
This must be incremental with the landlord given time to make the upgrades. The Government needs to look at ways of incentivising this with rebate schemes and the like. Failure to do so will drive up rents. |
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Currently a tenant can be taken to VCAT on three sequential occassions. The Bill proposes five opportunities for a tenant to bring arrears up to date. Under this proposal a landlord could not receive agreed rental payment 42 per cent of the year. |
Simplify the number of times a tenant can be taken to the Tribunal. Rental arrears causes significant mortgage stress on landowners. If the system becomes more complex, it is likely that landlords will repurpose their rental property for other forms income streams such as Airbnb. |
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120 Day "No reason" Notice to vacate |
Reinstatement of the 120 Day ‘No Reason’ Notice to Vacate. |
The REIV acknowledges that the Residential Tenancies Act 1997 requires an update and there are many aspects of the Bill that we support including:
· Protection for agents and landlords against threats and intimidation of tenants
· Outlawing rental bidding
· Proposals around family violence and protected persons
· Reforms around minimum standards for safety
· Protections against any type of criminal activity
Have your say against the proposed changes to the RTA
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