Tax and legal advice

Victoria rental reforms address ‘politics’, not ‘problems’

By Sasha Karen
Victoria, house for rent, rental, property investment, rental market, property rental, property investing, Victoria rental reforms

A recently formed council of property investors has claimed that Victoria’s recent proposed reforms to the Residential Tenancies Act 1997 would create more issues than solve pre-existing issues.

The Property Investors Council of Australia (PICA) has claimed that the rental reforms, announced back in October 2017, would result in rents being raised, investors going interstate, and removing many rights of landlords in favour of tenants.

Ben Kingsley, PICA chairman, said that if the reforms go ahead and turn investors away, rents could dramatically increase and put tenants in an even worse situation than before.

“Landlords make a significant financial investment to help accommodate growing rental demand, especially when the Victorian government … committed fewer funds into social and public housing over the past 10 years,” Mr Kingsley said.

“The very least the government should do is consult with important stakeholders before surprising us with these big changes. We are concerned this has more to do with politics than in addressing any serious problems with the existing act.

PICA, on behalf of its members, want a meeting and consultative process first as our landlords have a lot of unanswered questions regarding these proposed changes.”

Of all the 14 proposed reforms, the most concerning changes for landlords, according to Mr Kingsley, are:

  • The change to the timing regarding the ending of a lease, such as the removal of a landlord’s abilities to serve a no-specified reason 120-day notice to vacate and an end of fixed term tenancy 60- or 90-day notice to vacate after the first term;
  • Allowing for tenants to make non-structural changes to rental properties;
  • The capping of bonds, where rent is less than $760 per week, to one month’s rent; and
  • The removal of the right to consent or refuse a tenant having a pet

PICA is also promoting the Real Estate Institute of Victoria’s RentFair is Unfair petition, which is calling for those who disagree with the reforms to sign.

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Tune in to the latest episode of Property Showcase, the podcast with the inside track on the products and businesses that will help turbocharge your portfolio, maximise returns and make your overall investment experience seamless and stress-free!

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To hear more about these services, make sure to tune into this episode of Property Showcase!

 Make sure you never miss an episode by subscribing to us now on iTunes!

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Many investors who would have been successfully approved for finance last year are struggling now to either begin or continue their property investment journey because of the current financial climate.

In this episode of the Smart Property Investment Show, broker John Manciamelli and Momentum Media director Alex Whitlock joins host Tim Neary to discuss how APRA changes and the royal commission have resulted in a tighter lending economy and what that means for Australian investors.

They discuss what traps investors should avoid if they are trying to obtain finance, the four key growth drivers in a property market and unpacking trust structures while revealing one type of trust that you should miss.

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Why buying new property doesn’t mean buying better property

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