How Will New Rental Laws In VIC Impact Landlords?
After more than 20 years without change, Victorian real estate legislation laws are under review. With more Victorians renting now than ever before, the Victorian Labor government has decided it's time to introduce new standards.
According to the Victorian government initiative Rent Fair, in 2019, ""only 7.6% of new lettings in Melbourne were 'affordable' – compared to 30% a decade ago.""
As rental levels continue to increase across Melbourne, the legislation changes seek to combat rental affordability issues in the State.
The first legislation change relates to the frequency at which landlords are legally permitted to increase rents. With the change now in effect as of 19th June 2019, rental increases may only be enacted every 12 months. Previously, landlords with a periodic lease in place were legally entitled to increase rents every 6 months.
Further to this, the legislation specifies that rental increases must be deemed reasonable and in line with current market levels. If a tenant believes that this is not the case, they can appeal to the VCAT (Victorian Civil Administrative Tribunal) to have the increase reviewed.
For those landlords and tenants with a current fixed term or periodic lease in place, this new legislation will not impact you; however, it must be applied to any lease renewals and for all new tenancies signed after the 19th June 2019.
You can review the information presented by the REIV here.
At aussieproperty.com, we do not believe our clients will be affected by this change in legislation as we are experienced in analysing the market and dedicated to ensuring that rental levels match.