The Victorian government will officially introduce a series of five new rental reforms from Tuesday. Pictured: Jacinta Allan and Nick Staikos. NewsWire/Andrew Henshaw.
Victoria’s rental market will be hit by a new wave of regulations and rule changes from next Tuesday, including the end of no-fault evictions and the disappearance of rental bids.
The changes coming into effect from Tuesday also include an extension of the notice periods for rent increases to 90 days, as well as for certain notices requiring them to vacate the property.
The Consumer Affairs website also indicates that homes offered for rent beginning Nov. 25 must meet the state’s minimum standards, and that any lease signed since March 29, 2021 will be subject to mandatory annual smoke detector checks.
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Landlords and agents will also be required to protect tenants’ information from misuse, and it will become an offense to disclose information without the tenant’s consent.
On December 1, another major change will make it mandatory that all window cords be anchored and prevented from forming loops, in an effort to address a home safety hazard.
With the final five of Victoria’s 150 rental reforms since 2021 looming, Consumer Affairs Minister Nick Staikos has indicated he does not expect to announce further changes in the near future.
“Never say never, but I have a pretty full dance card when it comes to rent reform,” Staikos said.
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Victorian Consumer Affairs Minister Nick Staikos has not ruled out more rent reforms but says his ‘dance card’ is now pretty full. Photo: NewsWire / Diego Fedele
He noted that the change to prevent landlords and agents from accepting offers higher than tenants’ asking rents was the latest step in eradicating the practice, after rental providers were no longer allowed to ask for them in 2021, and enforcement would begin immediately.
“By closing this loophole, we are excluding rental bids and putting dishonest and opportunistic agents and rental providers on notice – from next Tuesday it will be illegal to accept bids from potential tenants above the advertised rental price of a property.”
Consumer Affairs Victoria’s rental taskforce has issued more than 90 fines totaling more than $750,000 for major rental violations since its inception in 2024.
Tenants will also receive protection from eviction, with only valid reasons allowing their removal from the home, including sale of the property, renovation or a breach of the agreement – such as non-payment of rent.
When a fixed term expires, the tenant automatically switches to a month-to-month rental contract unless a new fixed-term agreement is signed.
Tenants Victoria CEO Jennifer Beveridge said the move marks the end of tenants being “pitted against each other” to drive up prices.
Tenants Victoria chief executive Jennifer Beveridge says the changes are a big win for tenants.
“Tenants can now attend open inspections of properties within their budget without fear that the house will be rented for more than they can afford,” Ms Beveridge said.
“It’s hard enough to find a place to live without turning the rental market into an auction house.
“More needs to be done to level the playing field for tenants and the changes coming into force this month show that there is a real willingness to fix some of the system’s biggest failings.”
Property Investors Council of Australia board member Ben Kingsley said the exodus of landlords in Victoria was still underway. Tuesday’s changes were the latest evidence that the state government did not want investors here.
“No landlord is asking for a dance with this government on his or her dance card,” Kingsley said.
Mr Kingsley said the no-fault eviction change had been particularly poorly handled, with poor communication to investors about the details of the changes from the Government.
PICA board member Ben Kingsley says the reforms have been poorly communicated.
Real Estate Institute of Victoria CEO Toby Balazs said it was important tenants had access to safe housing at a time when vacancy rates were low.
“The REIV wants to ensure that there is a fair and balanced rental market that takes into account all key stakeholders: tenants, rental providers and property managers,” said Mr Balazs.
“Private rental providers represent more than 90% of the market, so it is important that the government recognizes this when adding rules, regulations and costs that they must bear and adhere to.
“One of the biggest challenges for property managers is keeping up with the pace of change to stay compliant and meet minimum standards. While the new regulations are still being finalized, the impact of the breadth and depth of these changes cannot be underestimated for those trying to manage these properties.”
From Tuesday, tenants will receive additional protection against eviction.
Just over a week ago, the government also passed a bill that will allow tenants to transfer their deposit from their old home to their next one from next year, meaning they won’t have to pay for two bonds at once when they move.
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