New rental laws set to come into effect in Victoria, including fine for third-party fees
Landlords and property managers in Victoria will soon face fines if tenants are charged by third-party apps as new laws come into force next week.
From March 31, a number of new protections for tenants will come into force, including a standard form for all rental applications, rules on what information can be requested from prospective tenants, a ban on third-party fees for applications and rent payments, and new guidelines on what constitutes excessive rent increases.
Businesses found to be violating these tenant protection laws will face fines exceeding $12,000, while individuals face fines exceeding $2,400.
Tenants have long complained about being asked to pay fees to third-party platforms or apps when making rent payments. Under current Victorian rules, housing providers must ensure tenants have at least one free payment method.
Announcing the changes, the Victorian Government said these reforms would make finding a home to rent “fairer, faster and more affordable”.
“More and more Victorians are renting and Labor is the only one dealing with them with new laws to protect their rights,” Consumer Affairs Minister Nick Staikos said.
“These new laws will protect Victorians from unfair and excessive charges during the current cost of living crisis.”
REA Group Senior Economist Angus Moore says being a renter is “very challenging”, with affordability falling to record levels. “The realestate.com.au rental affordability index measures how much rental housing is affordable for households on different incomes,” Mr Moore told Sky News Australia. “The typical income household in Australia can only afford a third of rent. “This pressure we’re seeing on rent is definitely fueling inflation.” In partnership with realestate.com.au
The move comes after a number of other rent protections came into effect in November, including a minimum 90-day notice period before rent increases can be implemented.
Other changes included a ban on rental bidding, a ban on no-fault evictions, and minimum standards for rentals.
At the time, Tenants Victoria, a not-for-profit advocacy group, welcomed the changes as the strongest tenant protections Victoria had ever seen.
“This marks a huge change for Victoria’s nearly 2 million tenants. These reforms recognize that tenants deserve the security and stability of their homes,” Tenants Victoria CEO Jennifer Beveridge said.
