Changes to the Residential Tenancies Act were passed by the Victorian Parliament in September 2018. They will come into force gradually commencing 1st of July 2020.
Concerns many agents and landlords have about what these changes will mean will soon become reality. The bill sees a massive shift in power from landlords to their tenants, in a move that some landlords fear will leave them disempowered and unable to ensure the security of their investment. In any other industry, such bias towards the renter would be absurd. If one was to hire a car, or a tent, or even an appliance, to put such power in the hands of the person renting would be laughable. What’s not laughable are the very real consequences for agents and landlords that find themselves in the worst case scenario with very few options.
According to the 2016 census, of all occupied dwellings in Melbourne, over 66% are rented. This huge number encompasses people from all walks of life, and it’s impossible to know which of those are going to turn out to be trouble. Under the new legislation, while landlords will still be able to remove difficult tenants who disturb their neighbours or fail to pay rent, the option to give notice to a tenant for “no reason” has been removed. What this means is that if a landlord winds up housing someone whose conduct is bad enough to make life difficult, but without enough tangible proof or severity to be covered under the law, there is nothing that can be done.
Where landlords may also find themselves powerless is the highly contentious issue of renters keeping pets. Under the new legislation, landowners cannot “unreasonable refuse” a renter permission to keep a pet. While consent must still be granted by the landlord, upon refusal the renter is within their rights to escalate the matter to VCAT, wherein this important decision as to who may live in a landlord’s property is taken out of their hands. To add insult to injury, new limitations on bonds could result in landlords being out of pocket for any damage caused by pets. Bonds cannot be any greater than a month’s rent (except for properties that double the average rent of $700/week). Considering the average month’s rent can be anywhere between $1500-$3000/month, it’s likely this amount won’t come close to the cost of replacing carpets or repairing structural damage caused by the presence of animals.
Perhaps one of the more concerning aspects of the new legislation for landlords, is the ability for renters to make “reasonable alterations” to a property without consent. There are currently no guidelines as to what will be considered as “reasonable”, but even seemingly reversible alterations such as picture hooks or painting walls can have massive consequences for a landlord should a DIY job be botched, and can affect the value of the property.
Agents will also be feeling the effects of the new act. Of all the various aspects of the highly talked about bill, one of the quieter changes that will be affecting selling agents especially, is that should an inhabited property be put on the market, renters can request that any images containing their personal belongings be excluded. Renters have the right to review any advertising material before it hits the market, and have the power to exclude any image that contains their personal effects. Renters will also be able to dob in the agents and property managers who fail to meet their obligations to a “non-compliance” register; essentially a name-and-shame list.
There’s always going to be a push and pull between the owners of property and those that are living in them. Owners need renters to be the source of income that makes having a rental property worth it. Renters need a home where they can feel some measure of stability and dignity. It’s in the interest of both to ensure that the property is maintained well, and whether the new legislation is able to keep this balance in mind is something only time will tell.
Whilst the “no reason” eviction clause is now a thing of the past, it is note-worthy that every legitimate reason for evicting a tenant has been preserved under the new legislation. As for the issue of pets and making modifications to a property, one has to be realistic. The fact of the matter is that if tenants want to keep a pet or put a hook on a wall, they’re going to. The difference is that now they won’t be compelled to lie about it, and in fact there is room for more transparency between landlords and tenants that a blanket “no” in a contract just does not allow. At the end of the day, while control over ones private assets is an important consideration, the lives and wellbeing of the overwhelming number of people renting their homes matters too.
