Consumer Affairs Victoria rental rules: new laws start, licence plan pitched
Key takeaways
- New Victorian rental laws are now in force. Landlords must give advance notice, with proof, before claiming on a bond.
- The Greens want a licence for every landlord, with three strikes before a ban. This is a proposal, not law.
- Victoria has passed more than 150 renters' rights reforms. The state has about 2 million renters.
Two big rental stories hit Victoria on the same day. One is law. The other is only an idea.
The mix has confused many renters and landlords. This explainer separates the two.
The law part started this week. New rental rules are now in force across Victoria, Australia. The idea part is a pitch from the Greens party.
The party wants every landlord to hold a licence. Three strikes would cost a landlord that licence.
What happened
First, the law. The Victorian government put new rental reforms into force this week. They change how landlords handle bonds, records, and safety checks.
A bond is a deposit. A renter pays it at the start of a lease. The landlord holds it as cover for damage or unpaid rent.
Under the new rules, a landlord must warn the renter in advance before claiming on the bond. The landlord must also give proof to back the claim. The goal is to end surprise bond grabs at the end of a lease.
Landlords and agents must also keep records. The records must prove the home met rental standards before it was advertised. The rule applies before the home is offered or the renter moves in.
Safety checks got tighter too. A gasfitter must check the property within six months before any draughtproofing work. Draughtproofing seals gaps that let cold air in.
It becomes mandatory for landlords from July 1 next year. Gas and electrical safety checks are now mandatory every two years for all rental homes.
One more change started on Tuesday. Landlords and agents can no longer charge fees for rental applications. The application itself must be free.
Victorian Minister for Renters Tim Richardson said the state has now introduced more than 150 renters' rights reforms. He said the latest changes would ensure there were "no surprise bond grabs".
He added: "Labor believes renting your home shouldn't mean you're treated like a second-class citizen."
Second, the proposal. On the same day, the Victorian Greens called for a landlord licence. Under the plan, owners would need a licence before renting out a home.
A landlord who breached a renter's rights three times would lose the licence. Losing the licence would mean a ban on renting out homes.
Greens spokesperson for renters Gabrielle de Vietri leads the pitch. She said the licence would give tenants more confidence to hold bad landlords to account. She said many tenants fear retaliation if they ask for repairs.
Retaliation means punishment for speaking up. A tenant may fear a rent rise or an eviction after asking for a fix.
De Vietri used a striking comparison. She said: "In Victoria you need a license to keep bees and if you want to use a metal detector." Her point was simple.
If small hobbies need a licence, landlords should need one too. She added: "If you can't provide a safe home then you shouldn't be a landlord."
Under the proposal, a landlord could lose the licence for breaches such as failing to remove black mould. Other breaches include failing to meet heating and cooling standards. Failing basic safety requirements would also count.
That is according to news.com.au.
The Greens also proposed an independent regulator. The regulator would run the licence scheme. It would keep a public landlord register.
It would require rent-worthy checks and energy efficiency disclosure for all advertised leases. It would carry out independent inspections. It would enforce penalties and take away licences for multiple or serious breaches.
The party estimated $50 million would be needed to set up the regulator.
The pitch comes ahead of November's state election. It sits beside other Greens policies. The party also wants to freeze and cap rents so they never rise faster than wages.
Why it matters
The story matters because it affects about 2 million renters in Victoria. That figure comes from Tenants Victoria. The group's chief executive is Jennifer Beveridge.
She said rental law compliance is the second biggest priority for renters. She said repair issues are the top concern in 84 per cent of Victorian electorates.
A rental property register would help, she said. It would give Consumer Affairs Victoria a live view of the sector. That would help the agency target audits and compliance work.
Renters would also know a home meets minimum standards before signing a year-long lease.
The story also matters because the Greens have a track record. At the last election, the party took four rental policies to voters. The four were a rent freeze, an end to no-grounds evictions, a ban on rental bidding, and minimum standards.
Three of the four are now law. Only the rent freeze was refused.
That record is why many people take the licence idea seriously. It is still only a proposal. It has not passed.
It may never pass. But the party has turned ideas into law before.
The reaction from landlord groups has been sharp. The Property Investors Council of Australia called the idea "an overreach". The group said it would make Victoria "the least investor-friendly state".
It warned the plan could be "the final straw" for many investors.
The Property Council of Victoria took a similar line. Andrew Lowcock is the group's deputy executive director. He said the policy would put a "stop sign" in front of people who want to build rental homes.
He said Victoria is competing for capital to invest in new homes. He warned the rules could push investment to New South Wales and Queensland.
The Real Estate Institute of Victoria also pushed back. Chief executive Toby Balazs said the volume of changes had become a significant burden for landlords. He questioned whether taking away licences would help tenants at all.
The Property Owners Association of Victoria went further. Spokesman Phil Spencer said the scheme should target social housing, not private investors. He also called for a public list naming bad tenants who are repeat offenders.
For renters, the key point is the paycheck squeeze. Rent is often the biggest monthly cost. Rules that protect the bond and force repairs matter to daily budgets.
But rules alone do not cut rents. The Greens say rent controls are also needed. Critics say heavy rules push landlords to sell.
Fewer landlords could mean fewer rental homes.
What happens next
Nothing changes for the licence plan right now. It is a policy call from a minor party. It is not a bill.
It has no start date. It has no fee set. It has no list of strikes in law.
Nobody should sell a house or break a lease over it.
The election in November will test the idea. Voters will hear the pitch on the campaign trail. The Greens will argue that renters need protection.
Landlord groups will argue that rules drive investors away. The outcome will shape what happens next.
The new laws, by contrast, apply now. Landlords must follow the bond notice rule. They must keep compliance records.
They must arrange gas and electrical checks. They must plan for draughtproofing by July 1 next year. Tenants can ask for proof.
They can also report breaches to Consumer Affairs Victoria.
For renters, the practical steps are simple. Keep copies of your lease and bond papers. Ask for repair requests in writing.
If a landlord claims on your bond, ask for the advance notice and the proof. If you face a fee for a rental application, know that the fee is now banned.
For landlords, the practical steps are also simple. Get the records in order. Book the gasfitter check.
Plan the draughtproofing work early. Do not wait for the deadline. Good records are the best defence if a dispute arises.
The bigger question will stay open for months. Can Victoria protect 2 million renters without driving landlords away? The new laws test one side of that balance.
The licence proposal tests the other. The election will decide how far the state goes.
This article is for information only and is not financial advice.
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