Victorian landlords are facing hefty fines and tougher rules to increase their rent amid new proposed rental reforms.

The Allan government announced Wednesday two new measures on top of a raft of reforms put forward in October — including an end of no-cause evictions and a cost-cap on tenants who break their lease early — as part of a new bill to be introduced in parliament.

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Individuals and real estate agencies who list a rental property that doesn’t meet the minimum standards set out in the Residential Tenancies Act could face an $11,000 or $59,000 fine, respectively.

The Labor government also plans to “expand the list of factors” considered by Consumer Affairs Victoria and the Victorian Civil and Administrative Tribunal (VCAT) when conducting a rent review, designed to “put the breaks on excessive rent increases,” Premier Jacinta Allan said.

Premier Jacinta Allan. Picture: NewsWire / Valeriu Campan

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“We’re building more homes for renters to live in, and we’re legislating more rights so renters get more respect,” Ms Allan said.

“It’s not fair that a renter can cop a 200 per cent rent increase just because they’ve asked for a basic issue to be fixed.

“New tenants should be able to focus on where they put their couch, not worrying about if they need to go to VCAT because the mould in the bathroom that was supposed to be removed after the inspection is still there.”

Minister for Consumer Affairs Gabrielle Williams said they were giving regulators more power to stop excessive rent hikes particularly if the landlord hadn’t maintained their property.

“This is about making the rental market fairer for everyone – the new legislation will upskill real estate agents, give them clearer rules to follow and provide renters with better protections,” Ms Williams said.

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But Real Estate Institute of Victoria (REIV) chief executive Kelly Ryan said the continuous addition of rental reforms was putting more pressure on landlords to maintain their existing properties and was “counter-productive”.

These reforms are said to be putting more pressure on landlord to maintain their existing properties. Picture: NCA NewsWire / Gaye Gerard

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“There’s an influx of investors leaving the market and selling their homes, and we are seeing an influx of people complaining about their rent increases and the size of their rent increases,” Ms Kelly said.

“But that is because the cost of these changes are becoming too much for investors, so they have two options; sell or put the rent up.”

She added that it was unclear yet on how the Victorian government was going to make it harder for landlords to increase rent.

“It’s already creating, whether it’s intended or unintended, another level of concern and angst around what control a rental provider has over one of their biggest investments,” she said.

“The consequence of all of this is less people actually being able to access house that they can afford. And if they can’t afford it, then that pushes them one step closer to being incredibly vulnerable.”

REIV chief executive Kelly Ryan said that the costs of these changes are becoming too much for investors, so they have two options; sell or put the rent up.

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Better Renting executive director Joel Dignam said it was great to see more power to stop excessive rent increase, and he supported expanding the factors that Consumer Affairs Victoria considered when ruling on a proposed rent rise.

“That said, we call upon Minister Williams to be more ambitious here and look to implement rent stabilisation measures like the Australian Capital Territory already has,” Mr Dignam said.

“In Victoria’s current system, all the pressure is on renters to put in the effort to oppose an excessive rent increase.

“A simple shift of onus, from renter to landlord, would help to moderate rent increases and bring more stability to renters’ lives.”

Tenants Victoria chief executive Jennifer Beveridge said they welcomed the new renter legislation from the state government especially because 30 per cent of the population were tenants.

“For renters who challenge unfair rent increases at VCAT, the extra assessment grounds that VCAT will be able to use, including the size of the increase, are a step forward,” Ms Beveridge said.

Victorian Minister for Government Services Gabrielle Williams (left) said they were giving regulators more power to stop excessive rent hikes particularly if the landlord hadn’t maintained their property. Picture: Ian Currie

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“To give renters more certainty we believe the next step in rental reform is to introduce a ‘fairness formula’ that guides the setting of fair rent increases.”

She said renters should have peace of mind that their place at least met minimum standards.

“Stricter penalties for not complying will ensure landlords meet the minimum standards at the point of advertising a property for rent,” she said.

“Landlords should all provide good housing that meets community expectations for safe and comfortable homes. They need to be mindful that they are providing an essential service.”

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