In response to new legislation for rental properties being introduced to Victorian Parliament today, the Real Estate Institute of Victoria (REIV) welcomes some measures but warns that other new measures will add further strain to a rental market already under pressure.

Of the measures in the Consumer and Planning Legislation Amendment (Housing Statement Reform Bill) introduced into the Victorian Parliament today, the REIV warns some are likely to create further deterrents to investment. These include an expansion of factors that can be considered by Consumer Affairs Victoria and VCAT in rent reviews, removal of no-fault evictions, and increases in notice to vacate terms to 90 days.

In addition, the REIV views increases in maximum penalties for rental providers and agents advertising properties that do not comply with rental minimum standards as unnecessary, as sufficient penalties are already in place.

However, the REIV is also supportive of many new measures, including a mandate for yearly smoke alarm checks and a requirement for properties to adhere to rental minimum standards at the point they are advertised. The REIV also supports the introduction of mandatory training to several professions across the real estate industry, as well as the expansion of licensing and registration requirements to owners corporation managers.

Kelly Ryan, CEO of the REIV, said the reforms will have a mixed effect on Victoria’s property ecosystem and some may turn away investors at a time where greater investment is needed.

“The new measures introduced to Parliament today will have a mixed effect on Victoria’s  property ecosystem. Many measures benefit renters but don’t do enough to support rental providers, many of whom are already being forced to pull rental stock from the market due to high compliance costs.”

“A healthy rental ecosystem relies on mutual benefit and value for renter, rental provider and the real estate industry. To achieve this, the Victorian Government must start focusing on incentivising rental providers and providing greater support to real estate professionals.”

“We are pleased to see the Government has listened to industry feedback and deferred its introduction of new energy efficiency minimum standards for the moment.”

The REIV continues to engage with the Victorian Government on legislation concerning the rental market, and will play a role supporting Consumer Affairs Victoria (CAV) in keeping its members informed of new initiatives.

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