The Victorian state government has released details of a raft of tenancy reforms aimed at protecting tenants and making renting more secure.

With more than one-quarter of Victorians now renting their home, premier Daniel Andrews said now is the time to give tenants greater protection.

But Gil King, CEO of the REIV, says the Andrews government hasn't taken the supply-side impact into account when drafting the new laws.

"The Andrews Government has been shortsighted in introducing these reforms which will decimate the private rental market, ultimately driving up rents and reducing the supply of rental properties at a time of unprecedented population growth," he said.

In an period of unprecedented population growth - the current rate of population growth in Victoria is 150,000 people per annum - King says the reforms will constrain the supply of rental properties.

The main changes are:

• The government will limit rent increases to once a year.
• The government will crack down on rental bidding, in which would-be tenants can out-bid each other on rent.
• Landlords will not be able to use ‘no specified reason’ notices to vacate their property.
• New restrictions will be put in place for ending leases without a reason at the end of a lease when that lease has lasted more than one fixed term. Landlords will be unable to end a fixed-term or periodic tenancy.
• Landlords will only be able to refuse pets in certain circumstances.
• Tenants will able able to make minor modifications to the rental property, such as installing hooks for picture frames, although consent from the landlord will be required.
• The government has introduced a system for quicker reimbursements for tenants who pay for urgent repairs themselves.
• Bonds will be capped at one month’s rent where the rent is twice the current median weekly rent – currently equivalent to $760 per week or less, covering the vast majority of Victorian rental households. 
• The government will also ensure faster release of bonds at the end of a tenancy. Under the reform, tenants will be able to apply for the release of bond without written consent from their landlord, who will have 14 days to raise a dispute before the bond is repaid automatically.
• The government will introduce a landlord and estate agent blacklist for renters.
• False, misleading, and deceptive claims by landlords will be outlawed.
• A Commissioner for Residential Tenancies will be established to champion the rights of Victorian renters and provide them with a say in future reform.

Earlier this year, the Victorian government introduced long-term leases.

These latest reforms lack balance and will significantly weigh the market in favour of tenants, according to the REIV.

"Under these reforms landlords will be unable to end a tenancy under almost all circumstances, while tenants will retain these valuable rights," said King.

"The Andrews' Government has removed a number of valuable landlord rights, which significantly reduces the attractiveness of property investment in Victoria."

"An REIV survey of landlords suggest a significant number (around 17 per cent) of landlords will exit the market if many of these reforms go through - which will reduce supply and increase competition for available properties."

Vacancy rates in Melbourne are already tightening, said King - they currently stand at 2.2 per cent - and there is increased competition for available rental properties.

"The retention of the Notice to Vacate for No Specified Reason is crucial to retaining balance in the market - with Victoria already having one of the nation's highest notice periods."

"A rental property is a significant financial investment and any future legislation needs to balance the rights of all stakeholders - not just tenants as these reforms do."

Majority of Victorian landlords are 'mum and dad' investors with only one rental property, according to the REIV.

These reforms have the ability to cause a rental crisis as those at the lower end of the market, according to the REIV. Tenants will be priced out and will be unable to be accommodated by public housing. Victoria has the lowest proportion of public housing in Australia and most of the developed world.

Premier Daniel Andrews said, “Everyone deserves the chance to have a safe, secure and affordable home – whether you own it or not.”

Minister for Consumer Affairs, Marlene Kairouz, said, “More people are renting than ever before and for longer – that’s why tenants need a fairer deal.”

You can read more about the changes to Victoria's tenancy laws here.

Read more about changes to Victoria's rental laws:

Victoria's rushed long-term tenancy legislation unattractive for landlords: REIV

NSW landlords need 'no grounds' eviction notices to remain put

Time is right to build and rent