As we all know by now, Rental Providers must make sure a property meets minimum standards on or before the day a renter moves in.
The minimum standards apply to rental agreements that:
A) Started on or after 29th March 2021, or
B) Started before 29th March 2021 and rolled over into periodic agreements on or after 29th March 2021
The minimum standards are divided into 14 categories and all residential rental properties must meet the standards for each category. There are penalties for failing to provide a property that meets minimum standards and there are also consequences for not carrying out requested repairs to bring a property up to minimum standards.
In a recent update to the CAV website, Consumer Affairs Victoria have outlined their regulatory priorities for 2023-2024 for the Real Estate sector. It is important to note that, the strongest emphasis is being placed on the rental minimum standards, underquoting & trust accounting.
The regulatory priorities set out the specific areas and consumer harms that CAV are concerned about in the marketplace, that they will focus proactive efforts on addressing over the next 12 months. These priorities are developed having considered a range of inputs, including emerging risks and their potential for consumer detriment, contacts from consumers, renters, businesses and others to Consumer Affairs Victoria, Victorian Government priorities and feedback from consumer, community and industry stakeholders.
Ensuring a fair and safe rental market – CAV Commentary (as at 30/01/2024)
The rental market is experiencing considerable challenges, with low rental vacancy rates and large increases in median rents across Victoria leaving many renters vulnerable to financial stress or poor conduct by rental providers. Emergencies such as floods and bushfires can further reduce housing supply and provide opportunities for unscrupulous conduct. Following the COVID-19 pandemic and the introduction of Victoria’s rental reforms in March 2021, we have an important role as Victoria’s residential tenancies regulator to ensure people understand and comply with rental laws.
Victoria’s rental laws largely regulate the private rights and responsibilities between renters and rental providers, but some types of poor conduct are also banned and can attract penalties. We will work with partners and stakeholders to promote awareness of the laws among rental providers and renters and will monitor and enforce compliance with key consumer protections, particularly where poor conduct targets renters and residents experiencing disadvantage in the current market.
CAV has outlined quite strenuously that adequate heating and mould prevention are particularly concerning in Victoria and have confirmed that under the 2021 rental reforms, allowing a renter to move into a rental property that does not comply with minimum standards is an offence. Whilst no clear plan has been declared, they have stated that they aim to educate rental providers and renters alike of their rights and responsibilities regarding minimum standards and in a quote directly aimed at rental providers who do not comply, they have declared – ‘we will also monitor non-compliance with the minimum standards and take regulatory action against rental providers who engage in egregious, deliberate, or systemic breaches’.
Industry chatter has revealed that some agencies have already received unexpected visits from CAV to audit their files, checking over all compliance records, including minimum standards. Allegedly, two agents have managed to keep themselves off the CAV non-compliance register as they were able to prove due diligence and communication records to their rental providers.
First National Real Estate Neilson Partners take the minimum standards very seriously and are unapologetic in our stance to inform owners of issues that need attention. Compliance is protection for our investors and us as your managing agent.
Ensuring your rental property is compliant can be costly and challenging for rental providers
Over the last 2.5 years, compliance laws introduced for Victorian investment properties have been a significant challenge for rental providers and property managers throughout the state. While the intentions behind these regulations, such as ensuring the safety of rental properties, are commendable, the increased costs for property owners and the substantial workload for agents have been an ongoing concern. Additionally, the quality and scope of services provided by Compliance Companies have proven to be anything but uniform.
To address this issue, First National Real Estate Neilson Partners have engaged with various Compliance Companies over the years and have gained valuable insights into the diverse services available and their suitability for our business and clients. In an effort to shed light on this often complex landscape, we decided to break down the information we've collected and provide a clearer picture of what these contractors offer in terms of services and costs.
Here's a glimpse of what we've discovered in our analysis of the most common and well-known ten providers of Compliance Safety Checks:
Quotes for Rectification Works
8 out of the 10 providers offer quotes for rectification works when an item is found to be non-compliant.
Business Software Integration
4 out of the 10 providers integrate with our business software for enhanced efficiencies.
Single Visit Convenience
7 out of the 10 providers aim to conduct all checks in a single visit to minimize inconvenience for renters, where possible.
TAPI BANNER
Payment Structure
6 providers offer a Pay-as-You-Go (PAYG) structure, while 4 operate on a subscription-based model.
Heater Compliance
6 out of the 10 providers offer a base service that aligns with the updated requirements for heaters.
Property Discounts
All 10 providers offer multiple property discounts for owners, but the criteria and offerings vary significantly.
Experience
The providers' experience ranges from 7 months to 18 years in the industry.
Cost Analysis
Excluding our management fee, the costs for Compliance Safety Checks across the two-year cycle range from $598 to $1065.90.
This overview illustrates the disparities within the compliance industry, prompting us to review the services and fees offered by contractors to ensure we provide the best service to our clients at a fair price. Neilson Partners utmost priority remains the safety of renters and the compliance status of rental providers.
For the best property management services in Narre Warren, Berwick, Pakenham and surrounds get in touch with First National Real Estate Neilson Partners.
