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.