Victoria's housing market is always evolving, along with the regulations governing rental agreements. As of 2021, new rental property laws have brought significant changes, impacting both landlords and tenants. Understanding these changes will ensure you’re aware of your rights and compliant when it comes to your responsibilities. In this guide, we'll outline the fundamental changes to Victorian residential tenancy laws and explain what they mean for you. Although over 130 amendments were introduced, we’ll start by covering new rental rules on modifications, pets, inspections, and maintenance.
What are the new rental rules?
Key takeaways:
- Modifications: Tenants have more freedom to personalise their rental home, but landlords retain the right to protect the integrity of their property.
- Pets: Tenants in Victoria are now allowed to keep pets in rental properties, as the 'no pets' policy no longer applies.
- Inspections: Landlords must provide seven days' notice for routine inspections, while other legally required visits require at least 24 hours written notice.
- Maintenance: Landlords must maintain their property to meet minimum standards as per Residential Tenancies Regulations 2021.
Rental property modifications
Tenants now have greater freedom to personalise their rental homes with minor modifications—many of which no longer require landlord permission. Such permissible changes include installing non-permanent items like curtains, adhesive picture hooks, free-standing shelves, and child safety devices.
New laws have mostly gone in favour of tenants when it comes to modifications. Landlords must have a legitimate reason for preventing tenants from painting walls, installing a pet door, or dishwasher or building a garden bed. Landlords are only allowed to refuse changes to their rental property if they cannot be reversed.
However, for more substantial alterations or structural changes, landlord consent remains necessary.
Landlord rights and obligations
There are certain circumstances in which it would be reasonable for a landlord to refuse a modification. Converting a garage into a living space is just one example.
On the other hand, a landlord cannot unreasonably refuse consent for modifications that improve safety, energy efficiency, or accessibility.
Under Residential Tenancies Regulations 2021, landlords can request that tenants remove any modifications and restore the property close to its original condition at the end of the tenancy.
Additional costs for tenants
If major modifications are made without the landlord's agreement, a tenant may be responsible for restoring the property to its pre-existing condition at their own expense. In some cases, landlords may request an additional bond to cover potential restoration costs.
The best approach to any kind of addition or alteration is for the tenant and landlord to discuss it and reach a mutually convenient agreement. If a dispute arises, consult the Residential Tenancies Regulations 2021 or consider enlisting the help of a knowledgeable Property Lawyer.
Laws concerning pets in rental properties
New laws allow all tenants in Victoria to have pets living in their rental property. However, conditions must still be met for this to happen. Tenants must inform the landlord that they will have a pet living in the house and formally receive permission from the landlord before the pet can move in.
Landlord rights and obligations
Landlords in Victoria have a specific timeframe for responding to a tenant's pet request. Upon receiving a formal application, they have 14 days to decide whether to accept or reject the request.
While due process exists, a landlord's ability to deny a pet request is limited. They can only refuse if they obtain a formal order from the Victorian Civil and Administrative Tribunal (VCAT) stating that their refusal is justified.
Additional responsibilities for tenants
Even with approval, pet owners still have reasonable responsibilities. For instance, apartment living often comes with specific pet rules. Pets typically can't access common areas and shouldn’t be a nuisance to other tenants.
Breaching pet ownership rules can have serious consequences. Landlords may impose financial penalties or, in severe cases, initiate eviction proceedings.
Rental property inspection laws
Under the new laws, landlords' rights to conduct inspections have been modified to balance property oversight with tenants' right to quiet enjoyment. This means landlords must now provide written notice before entering a property for inspections, repair, or other permitted reasons.
Landlord rights and obligations
Landlords can conduct routine inspections, but they are limited to once every six months. They must provide at least seven days' written notice before an inspection. For urgent repairs or if there's reasonable suspicion of lease violations, landlords may enter with 24 hours' notice.
Tenant rights
Tenants have the right to be present during inspections. They can also negotiate the timing of inspections within reason. If a landlord breaches these rules, tenants can seek compensation through VCAT.
Rental property maintenance and repair laws
New laws have clarified and strengthened maintenance obligations for both landlords and tenants. The rental provider must follow these laws regardless of the character, age, or condition the property was in prior to the move-in date or the amount of rent paid. If urgent repairs are needed, the rental provider cannot refuse to arrange them.
Landlord responsibilities
Landlords must ensure the property is in good repair and meets minimum standards of cleanliness and safety. This includes maintaining all fixtures and fittings provided, ensuring proper ventilation, and addressing any structural issues promptly.
The new laws have expanded the definition of urgent repairs and increased the amount tenants can authorise (up to $1,800) for such repairs without landlord authority.
Tenant responsibilities
Tenants are required to keep the property clean and avoid causing damage beyond regular wear and tear. They must report any maintenance issues to the landlord or property manager as soon as possible.
If a tenant causes damage that exceeds fair wear and tear, they may be held responsible for the repair costs. This could impact their bond return or future rental applications.
Eviction rules for rentals
New law changes mean that landlords must provide an acceptable reason as to why they are evicting a tenant from the rental property. To clarify things further, there are now established reasons a landlord can use to justify evicting a tenant.
Accepted reasons for evicting a tenant include the landlord wanting to move into the rental property or planning to sell, demolish, or change the use of the property (e.g., from residential to commercial).
Keeping up-to-date with rental property laws in 2024 and beyond
Recently, the Victorian government has proposed new minimum standards for rental properties to improve energy efficiency and tenant comfort. These changes will require landlords to invest in upgrades such as ceiling insulation, draught proofing, heating, cooling, and energy-efficient hot water systems.
With that in mind, staying up-to-date with rental laws is highly recommended to avoid unexpected issues or financial setbacks down the track.
The bottom line
Whether you’re a property owner, renter, or both, open communication is essential for compliance and protecting your rights. When you need advice, always consult a legal professional. A well-drafted lease agreement and ongoing legal advice can safeguard your property and minimise disputes.