The Victorian government has introduced sweeping reforms aimed at curbing rent increases and preventing dodgy rentals for tenants across the state.
New rent increase and rental standard reforms represent a significant step in tenant protections, targeting long-standing issues that have placed renters at a disadvantage in an increasingly competitive housing market.
These changes follow years of consultation and build upon over 130 rental reforms already implemented by the government, although most have been previously announced. Premier Jacinta Allan and Minister for Consumer Affairs Gabrielle Williams today announced the Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill, a comprehensive package designed to address excessive rent increases and improve the quality of rental properties.
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From banning rent fees to requesting extra keys, here are Victoria’s new rental reforms
Addressing excessive rent increases
One of the most significant changes in the proposed legislation is the expansion of factors considered in rent reviews. Currently, tenants facing substantial rent increases have limited recourse. Rent reviews can only consider narrow grounds, excluding the size of the increase itself or the condition of the property.
This has led to situations where renters face significant rent hikes even in cases where a landlord has failed to maintain the property. For example, a tenant living in a home with unresolved mould issues could still see their rent rise dramatically without any mechanism to challenge the increase.
Under the new reforms, both Consumer Affairs Victoria and the Victorian Civil and Administrative Tribunal (VCAT) will have broader criteria for assessing rent increases. The legislation proposes that the magnitude of the increase and improvements (or lack thereof) made to the property since the last rent hike will now be considered. This change ensures that renters are not penalised with unreasonable increases while living in substandard conditions.
The government hopes this expanded rent review process will curb instances where tenants are forced to absorb unjustified costs, particularly in the context of an ongoing housing affordability crisis. These changes also aim to deter landlords from exploiting the system by ensuring rent increases are tied to fair and reasonable justifications.
Ensuring rental properties meet standards
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Another critical area addressed by the Bill is the condition of rental properties. Existing laws require rentals to meet minimum standards, such as having a functional kitchen, secure external doors, and being free from mould and damp. However, tenants frequently report moving into properties that fail to meet these basic standards, forcing them to negotiate repairs after taking possession.
To tackle this issue, the new legislation will make it mandatory for properties to meet minimum standards at the point of advertising, not just when a tenant collects the keys. This reform shifts responsibility to landlords and agents to ensure that rental properties are ready for occupancy before they are even listed on the market.
Landlords and agents who fail to comply could face significant penalties. Fines of more than $11,000 for individuals and $59,000 for companies will apply to those advertising or offering substandard properties for rent. This provision is designed to prevent landlords from offloading maintenance responsibilities onto new tenants while also ensuring renters can focus on settling into their new homes without worrying about urgent repairs.
The government views this reform as a necessary step to improve accountability in the rental market, creating a more transparent system where tenants are guaranteed a minimum standard of living from the outset.
Additional rental reforms
The Bill includes a wide range of measures aimed at improving fairness and transparency for renters:
- Removal of no-fault evictions, ensuring tenants cannot be removed from their homes without a valid reason.
- A ban on rental bidding, where prospective tenants are pressured to offer higher rents to secure a property.
- Increased notice periods for rent increases and notices to vacate, extending the minimum requirement to 90 days.
- Enhanced privacy protections for renters, including stricter rules around the use, collection, and destruction of personal information during the application process.
- Mandatory licensing, training, and registration for real estate agents, property managers, and other industry professionals.
- Stricter penalties for landlords and agents who breach the law, including fines for misconduct or failure to comply with regulations.
- Mandatory annual smoke alarm checks to ensure tenant safety.
- The establishment of Rental Dispute Resolution Victoria, a new body aimed at resolving disputes more efficiently.
Future reforms, scheduled for introduction in 2025, will address additional issues, such as:
- Capping costs for breaking a lease to prevent excessive compensation demands on tenants.
- Banning dubious bond claims by landlords who fail to provide sufficient evidence.
- Ensuring tenants can access extra keys or fobs for their apartments without undue restrictions or fees.
- Prohibiting third-party rent tech apps from charging tenants additional fees to pay rent or apply for properties.
These changes aim to create a more balanced rental market, removing unfair practices and reducing the financial burden on tenants.
Existing protections for tenants
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In addition to the proposed changes, current Victorian rental laws already include protections for tenants facing rent increases. Under existing legislation:
- Rent can only be increased once every 12 months for leases signed after 19 June 2019, or every six months for agreements signed earlier.
- Landlords must provide tenants with a minimum of 60 days’ written notice before any rent increase takes effect.
- During fixed-term leases, rent increases are only allowed if explicitly stated in the rental agreement, and the method of calculation must also be specified.
- Notices of rent increases must be in writing and include key details such as the amount and date of the increase.
Tenants who believe an increase is excessive can request an investigation by Consumer Affairs Victoria. If the increase is deemed unreasonable, renters can apply to VCAT to have the rent reassessed. These protections are designed to ensure that rent increases are both fair and transparent, providing tenants with options to challenge unjustified hikes.
Government commitment to renters’ rights
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Premier Jacinta Allan emphasised the importance of these reforms, stating, “We’re building more homes for renters to live in, and we’re legislating more rights so renters get more respect.” She added, “It’s not fair that a renter can cop a 200 per cent rent increase just because they’ve asked for a basic issue to be fixed – so we’re putting the brakes on excessive rent increases and ensuring properties meet minimum standards.” Allan also highlighted the stress renters face when moving into substandard properties, saying, “New tenants should be able to focus on where they put their couch, not worrying about if they need to go to VCAT because the mould in the bathroom that was supposed to be removed after the inspection is still there.”
Minister for Consumer Affairs Gabrielle Williams echoed the Premier’s sentiments, stating, “We’re giving regulators more powers to stop excessive rent hikes, particularly if the landlord hasn’t maintained the property.” She added, “This is about making the rental market fairer for everyone – the new legislation will upskill real estate agents, give them clearer rules to follow, and provide renters with better protections.”
These reforms build on the Victorian government’s broader housing agenda, which includes increasing housing supply and improving affordability for renters. By addressing issues such as rent increases and substandard properties, the government aims to create a more equitable and sustainable rental market that benefits both tenants and landlords.
Find out more about rent increases and your rights as a tenant here.
