Victorian Rental Reforms

Discussion in 'Property Management' started by Lil Skater, 5th Aug, 2018.

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  1. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Felt like reviving this thread a little bit.. We've had more clarification on the reforms, looks like they'll come in periodically with the final date for the whole amendment to be in play pay mid 2020. Yippee!!

    After A LOT of reading and a few training sessions, I have a bunch of reforms that I'm going to break down in simple terms. It's an hour before a public holiday here in Melbourne and I have some time to kill - so pull up a chair my friends ;) This isn't all of them

    Quick short hand: RRA = Residential Rental Agreement (lease) RRP = Residential Rental Provider (landlord) Renter (tenant). WHY they needed to change these, I don't know, but try to say Residential Rental Provider 10 times quickly.

    29A - RRA signed by renter only =The lease is enforceable, even if only signed by the tenant.
    29B - Application to VCAT to order RRA = Renter can apply to VCAT to create a lease, including periodic agreements
    30D - Disclosure before entering into RRA = These will be prescribed matters, but so far include things like the possibility of a sale, asbestos, if the property is under a mortgagee, if the property is part of an embedded network. I'm sure there will be further clarity soon.
    30E - Misleading or deceptive conduct = Basically exactly what it says, the agent or the RRP cannot engage in deceptive conduct. Ie. says that there's air conditioning and there's not etc.
    30F - Rental premises must be offered for rent at fixed amount = No rental bidding, must be fixed price, not a range. You CAN still accept a higher offer though, but you cannot ASK for it.
    31 - Max bond = they've deemed this 4 weeks rent, unless double the median rent. Fun fact about this is they've stated 4 WEEKS and we currently work on a calendar month basis, so I'm thinking this may see the end of calendar monthly leases and what not.
    35 - Condition report = Will have a prescribed form, can be ELECTRONIC (wooo), tenant MUST be invited to the outgoing inspection, increase to 5 business days to return condition report (currently 3), VCAT has authority to change the condition report.
    36 - Condition report is evidence of state of repair = Renters can use the condition report to report maintenance.
    42. Where and how rent is to be paid = all fees and charges must be outlined (including dishonour fees), Centrepay MUST be an option available, must have free options available. Also cannot force a tenant to pay by a means that's no longer reasonable, ie. cheque.
    44. Rent increases = Now once per year
    54. Give key or security device to all renters = Every tenant must be provided a set of keys.
    61. Renter or visitor must not damage premises OR common areas = common areas aren't covered at the minute, but duh.
    63A. Renter's safety related duties = Renter's cannot damage or tamper with things like smoke alarms, or they can be issued a NTV. They also must use a "suitable" tradesperson for repairs.
    64. Modifications to rented premises = These are going to be prescribed, interestingly in the advertisements for the changes it listed things like "picture hooks" but the legislation says that it cannot "penetrate" the surface. Also, fun fact is you can take a reasonable additional bond to cover rectification.
    65. Duty in relation to provision of premises = Basically the day the tenant moves in the property must be reasonably clean, meet minimum standards and vacant. BIG penalties for screwing this one up.
    65A. Minimum standards = Again to be prescribed, but talks of things like vermin proof bins, windows secure, toilet, kitchen, cook top, oven (I actually have some apartments WITHOUT ovens, so that'll be fun), sink, heating in the living area, and blinds. Again big penalties.
    68. RRP duty to maintain premises = Must be maintained in good repair, despite price paid for property, and again, repairs by a suitably qualified tradesperson.
    68B. Keep and produce records of gas and electrical safety checks = Again, prescribed and approved by Energy Safe Victoria.
    70. Locks = ALL external doors must have deadlocks, unless there's another form of security barrier. Don't know what this means for fob access apartment buildings. Locksmiths will be happy.
    71A. PETS = Can keep with consent (written) or VCAT order.
    71B. Renters request for consent = Another prescribed form from CAV
    71C. Cannot unreasonably withhold consent for a pet = You must provide a yes/no within 14 days, if you don't respond it's an auto yes. If you say no, it's off to VCAT you go. No word of whether a previous VCAT hearing declaring the property unfit for pets can carry over permanently.
    71D. Application to refuse consent or exclude pet = VCAT can exclude the pet and give the renter 14 days notice to remove if the tenant hasn't asked for permission.
    71E. Tribunal orders on pets = VCAT can say yes or no, if they exclude a pet and don't comply they can terminate the tenancy under 91ZZG
    72. Urgent repairs = Now 7 days to reimburse the tenant and includes cooling
    76. Tribunal orders for repairs = Can order works to be done by a qualified tradesperson, can also rule on compensation.
    79. RRP may do repairs and renter liable = Renter has 14 days to reimburse, or can apply to VCAT on hardship.
    85. Entry to premises = Either upon agreement, or varying terms depending on why you're entering. 24 hours is current and 24 hours will remain for family violence, otherwise it's anywhere between 48 hours and 7 days.
    86 (1). Grounds of entry = Includes photos and/or video, buyer, lender, sale, OFI
    86 (2). Grounds of entry = Increases time for leasing the property from the last 14 days to 21 days.
    86 (2A) Grounds of entry = intention to sell 14 days notice, no more than 2 inspections per week for up to an hour, unless agreed. Compensation is also "prescribed" for EACH inspection.
    89A. Produce advertising images and videos = Renter has the right to view these prior to going live and ensure they cannot be identified, also limits the usage of the image to 12 months, unless by agreement.
    211A. Further matters to be considered by tribunal = This surrounds break lease situations.
    91L. Termination by renter before possession = renter can terminate the lease before taking possession if they're not vacant, in good repair, unfit, do not meet minimum standards, clean, safety/security concern.
    91N. Termination after death of SOLE tenant = Now no notice period, either by agreement or VCAT order the tenancy is terminated, no more than 28 days.
    91ZB. Reduced period of notice of intention to vacate = Basically the renter can terminate at any stage once a NTV is served, regardless of how long is left on the lease.
    91ZC. Fixed term of more than 5 years doesn't comply with standard form = another prescribed lease form. If it's not in the prescribed form the lease can be terminated by the renter at any stage with 28 days notice.
    91ZI. Damage = no longer specifies "malicious" and can issue a NTV
    91ZJ. Danger = If renter of visitor endangers the RRP, agent, employee or contractor they can be issued a NTV
    91ZK. Threats and intimidation = 14 day NTV
    91ZM Non payment of rent = This one suckkkkkkkkkkkks. If a tenant pays within the 14 days' notice the notice is VOID, on the 1-4 occasions VCAT can put on a payment plan, refer to counselling or issue a possession order. On the 5th occasion it's a payment plan or possession.
    91ZZK Notice by mortgagee = Increased time to 60 days
    91ZZO Form of NTV = Another prescribed form with documentary evidence
    322. Application for possession order = 120 day NTV has been removed and 90 day end of lease has been restricted to the first lease only. Suggestion would be to do a slightly longer lease to start so you can do two routine inspections and have extra time before deciding whether to give someone the boot or not.
    388 Fee for goods left behind = can charge the tenant for storage of their s*it either less or equivalent of weekly rent.
    439P. Rental Non-compliance register = Agent or RRP can be listed on this if they've received a breach of VCAT order. Stays for 7 years from memory.

    If you've gotten all this way, congratulations! Hopefully that clears up some things, even though we still don't have the prescribed forms :rolleyes:
     
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  2. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Some of that stuff is really exciting- Gee I wish minimum standards would hurry up to QLD. Other parts of it (knock knock, rent arrears) look bad.

    All in all, not too negative for you Victorians I think?
     
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  3. Michael Mitchell

    Michael Mitchell Well-Known Member

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    lol @ 439P

    Gotta love the ol' hardship so tenants can just get out of their financial obligations. If that's the case they should get slapped with the equivalent of declaring bankrupt type of thing so others can avoid going through the same crap with them..
     
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  4. Lil Skater

    Lil Skater Well-Known Member Business Member

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    439P Is intriguing to me. Why? Because the legislation to list a TENANT on the databases requires us to jump through many a hoop and it only stays for THREE years, not seven. Equality, huh?

    I also think hardship needs to be proven more, but I guess one could argue that getting them out of a lease agreement could save them from bankruptcy..

    Look, all in all it's not so bad. I'm still annoyed about the bond thing and the changes to the notices to vacate, plus also pets. I'm also annoyed that there's going to be all these prescribed forms and requirements... but we don't actually know what they are still. I suppose it's still early days and CAV will wait until the last second to implement these changes as they'll need to employ new staff to actually DO the forms.
     
  5. Owlet

    Owlet Well-Known Member

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    I understand these changes have passed. When do they actually come into effect? Is it for new leases? Are existing leases grand fathered? For example if I have a tenant on his second lease can I give him a 120 day no reason so he vacates at the end of his second tenancy?
     
  6. Lil Skater

    Lil Skater Well-Known Member Business Member

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    These will come in no later than 1st July 2020.

    So you should be able to issue a 90/120 day notice for end of lease/no reason up until this point, unless it comes into effect sooner.
     
  7. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    I wonder if this enforcement will be passed down the line to the likes of the websites that advertise properties for sale/rent. Presently, old images are there and you can scroll through and say oh look, that's what the place looked like 5 years ago. I wonder if images will just vanish after 12 months because it's just too hard to run stocktakes of which images can stay and which will go...
     
  8. Lil Skater

    Lil Skater Well-Known Member Business Member

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    I hope not, I love stalking old properties and it helps when doing appraisals before getting to the place!
     
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  9. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    Indeed @Lil Skater ... it also helps to get a visual on things like "oh... ok... there was once a wall there which they've knocked out. Need to check if there are appropriate supports in place in the roof cavity to make up for it" or "oh... I see we've reno'd the bathroom recently... I wonder if it was a DIY job. Must ask about who did the waterproofing".
     
  10. Frank60

    Frank60 New Member

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    When the "NO REASON TO VACATE" eviction notice is removed from July 2020.How many days notice do you have to give the tenant to vacate if you want to renovate the property
     
  11. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Well, fun fact they're also removing the 90 day end of lease NTV after a tenant has leaded the property beyond their first lease.

    So maximum NTV if on periodic/additional lease would be 60 based on renovations, landlord moving in etc.
     
  12. dabbler

    dabbler Well-Known Member

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    I think that is exactly what will happen.

    We have all prob had people in first term that fall behind for whatever reason, sometimes the explanations are legit, but we never really know why, but, who would want to keep them on if they have done this, I was only just thinking I would of had to boot quite a few as I was reading this.

    LL has to be able to get property back, just as tenant has to be able to move if they so wish.
     
  13. dabbler

    dabbler Well-Known Member

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    Frankly, with all the nanny state stuff, and meddling to make some things very tenant oriented, couple that with falling markets and Labour likely to drive the stake in even further, it is looking pretty unattractive to invest in many places.

    Next you will have to allow AirBNB guests to stay on permanently and bring all pets as well...lol
     
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  14. Frank60

    Frank60 New Member

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    Dan ,the premier will have egg on his face when rents shoot up and supply dwindles
     
  15. Tony3008

    Tony3008 Well-Known Member

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    Balanced by the smile on my face if this happens (which I don't believe will happen for a minute)
     
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  16. Frank60

    Frank60 New Member

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    Happened in 1989 when keating removed negative gearing ,then reinstated it .laws of supply and demand