Three years on since the Victorian Rental Law changes came into effect in March 2021, we have been advised that Consumer Affairs Victoria have commenced their audit on rental documentation and compliance surrounding safety checks and minimum standards. We have also heard on the industry grape vine that Energy Safe Victoria, are conducting electrical checks on new builds, leading to a prediction that this will shortly be the case for established investment properties as well.

More recently, the REIV has informed agents that the Allan Labor Government is establishing a new renting taskforce to crack down on rental providers and estate agents who do the wrong thing. Minister for Consumer Affairs Gabrielle Williams announced on the 21st March 2024 a dedicated taskforce that will focus on offences like false advertising, renting out properties that don’t meet minimum standards, and not lodging bonds. You can see further information at https://www.premier.vic.gov.au/taskforce-crack-down-dodgy-rentals

It would appear that any grace period afforded to investors to action safety checks and ensure minimum standards are met, is now well and truly over.

First National Real Estate Neilson Partners have a compliance partner, CheckHero, to manage our investor clients safety checks and they have been doing an amazing job. If you no longer wish to self-manage the safety checks on your investment property or properties or are using another provider and would like to switch over, please get in contact with your property manager at Narre Warren, Berwick or Pakenham.

Minimum standards are different to safety checks of course, and relate specifically to the basic requirements afforded to a renter’s amenity, safety and privacy. The Residential Tenancies Act 1997 states: “65A Occupation of rented premises that do not comply with rental minimum standards without limiting sections 65, 68, and 70, a residential rental provider (owner) must ensure that rented premises comply with prescribed rental minimum standards on or before the day on which the renter enters into occupation of the premises”.

The renter can also end the rental agreement before moving in if you do not comply. If they are already living in the property, they can request an urgent repair to ensure the rental property meets the minimum standards at any time.

What are the Rental property minimum standards?

A rental property within Victoria must comply with the 14 categories of minimum compliance standards. We have provided a breakdown of those on numerous occasions to ensure proper education and awareness to our investors. They are also included with our Disclosure Statement when you sign an authority, are re-leasing your property or renewing a current rental agreement.  These can be viewed again by clicking on this link: https://www.consumer.vic.gov.au/housing/renting/repairs-alterations-safety-and-pets/minimum-standards/minimum-standards-for-rental-properties

If I don’t comply with Victoria’s rental minimum standards, what will happen?

Penalties under the new regulations for non-compliance are a fine of up to $10,000 for individual rental providers and up to $50,000 for body corporates. In addition, the owner and agent will be publicly named and listed on the Consumer Affairs Victoria Non-Compliance Register. Yes, it does exist!

How is the penalty calculated?

In the case of a natural person, 60 penalty units apply. For body corporates, it’s 300 penalty units.

Currently (Year 2023 – 2024), one penalty unit equals $192.31, and 60 penalty units amounts to $11,538.60).

Consumer Affairs Victoria has an online Rental non-compliance register that shows rental providers and agents who have been non-compliant. They stay on the record for three years.

How our expert Property Management team help you avoid these harsh penalties?

So, these penalties and a red mark against your name may seem a little terrifying, but the good news is we are here to help, so you don’t have the worry about breaking any laws. Our dedicated, experienced property management team are well-versed in residential property, the ins and outs of rental providers’ and renters’ rights. Here’s how we support you (the rental provider), as your trusted agent:

First National Neilson Partners have expert knowledge of compliance and disclosure requirements while following all residential tenancies act rules and regulations.

First National Neilson Partners know all the questions to ask our rental providers to ensure a property is compliant.

First National Neilson Partners have compiled a full and thorough Disclosure Statement including all these questions for the rental provider to complete, so there are no nasty surprises!

First National Neilson Partners Disclosure Statements are paperless for ease and speed of completion.

First National Neilson Partners have an existing partnership with CheckHero to assess the compliance status of properties and manage all ongoing safety checks and reporting on properties.

First National Neilson Partners can handle all non-compliant items and ensure they are rectified, making the process easy for our clients.

First National Neilson Partners can arrange a minimum standards audit of your property if required – cost applicable.

Now more than ever, owners need to be accountable for, and on top of issues, relating to their property. This protects the renter by providing them with a safe place to live, that is in good repair, but also protects you from penalties and maintains the value of your investment.  It is essential to ensure appropriate checks and repairs/upgrades are completed and documentation is maintained to prevent any problems further down the track.