From November, Victoria will see the introduction of new rental reforms, including the implementation of an extended notice period, as well as the removal of the ‘no reason’ notice to vacate.
Landlords will now have to provide a genuine reason to terminate a tenant’s lease and give tenants a notice period of 90 days, increased from the previous 60 days.
Similarly, agents will be required to interpret new rules, update processes, and ensure compliance, while supporting both renters and landlords.
Under the new reforms, rental providers and agents will be prohibited from accepting unsolicited rent offers higher than the listed price and will not be able to accept more than one month’s rent paid in advance.
Barry Plant franchise development manager in property management, Megan Kimpton, told Broker Daily sister brand REB that limiting tenants’ ability to pay rent upfront may have unintended negative impacts on retirees and downsizers, who may rely on their savings and super rather than a traditional income.
“In many cases, these applicants offer to pay several months’ rent upfront to provide property owners with confidence that tenancy obligations can be met, despite not having a conventional income stream,” Kimpton said.
“While we support the overall intent of the reform, we hope that appropriate provisions are made to ensure it does not inadvertently disadvantage responsible renters who rely on alternative means to demonstrate affordability.”
Agents will also have to ensure that a property meets all minimum standards before it is advertised on the market.
There will be an overhauled framework for rent review to ensure the state’s governing bodies consider more factors when determining if a rent increase is fair and justified.
Additional factors may include the size of the proposed rent increase compared to the existing rent, as well as any improvements made to the property since the last increase.
Kimpton said that the increased frequency of the reforms has placed more pressure on property managers.
“With limited clarity around how the latest changes – set to take effect in November – will function in practice, Property Managers are once again responsible for interpreting the legislation, adjusting processes, and ensuring all clients are supported and informed,” Kimpton said.
“Despite these challenges, Property Managers continue to demonstrate resilience, professionalism, and adaptability, working tirelessly to provide the best possible experience for both renters and rental providers.”
Similarly, Kimpton said the new rental reforms may cause financial stress for the home owners and investors, especially under the ‘no reason’ notices and the more extended notice periods.
“The removal of this particular notice also limits a property owner’s ability to regain possession outside of prescribed reasons,” Kimpton said.
In addition, she said that the financial pressures raised by the compliance measures have forced many investors to look to sell their properties in Victoria.
“This has placed further strain on vacancy rates, driving rents higher and ultimately leading to less favourable outcomes for renters,” she concluded.
“While we support legislation aimed at creating fairer outcomes for renters, we believe there must be a cautious approach to reforms targeting large-scale landlords that inadvertently place undue pressure on everyday ‘mum and dad’ investors.”
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