All you need to know about rental minimum standards in Victoria

Here is what we will cover:

What are minimum standards for rental properties in Victoria?

The Minimum Standards comprise a set of 14 categories that every rental property in Victoria is required to adhere to, as outlined in the Residential Tenancies Act 1997.

Failure to ensure compliance with these standards may result in substantial penalties and fines for rental providers and real estate agents.

It is imperative for every rental property to meet each of the 14 categories independently to maintain compliance with the regulations.

Why does Victoria need minimum rental standards?

Minimum rental standards were essentially designed to increase protection for renters, ensuring their privacy, comfort, and safety.

In Victoria, this includes having a functional kitchen, energy-efficient heating in main living area, lockable external doors, as well as having mould-free home, structurally sound, and waterproofed.

While many rental properties across Victoria are well maintained and in relatively good condition, a significant amount fail to meet basic standards.

Intense competition for rental properties, especially in the lower price range, results in vulnerable renters being compelled to settle for inadequate conditions that put their health and well-being at risk.

What are the 14 categories of minimum rental standards?

The 14 categories of minimum standards are:

Locks, Bins, Toilets, Bathrooms, Kitchens, Heritage exception, Laundry, Structural soundness, Mould and dampness, Electrical safety, Window coverings, Windows, Lighting and Heating.

When did the requirement came into effect?

In September 2018, the Victorian Parliament enacted the Residential Tenancies Amendment Act 2018, which modified the primary legislation governing residential tenancies, namely the Residential Tenancies Act 1997.

These amendments have been gradually implemented since 2018. They encompassed over 130 reforms to Victoria’s rental laws.

The comprehensive set of new rental laws took effect on 29 March 2021, applying to all rental agreements initiated on or after that date, or to agreements that commenced prior to 29 March 2021 but transitioned into periodic agreements on or after that date.

Certain standards, such as those pertaining to window coverings and electrical safety, were phased in during 2022 and 2023, respectively.

Is it illegal to provide rental property that is not meeting minimum standards?

Yes, absolutely.

It’s crucial to understand that allowing a renter to occupy a property that doesn’t meet rental minimum standards constitutes a criminal offense.

Penalties for non-compliance can be severe, with companies facing fines exceeding $57,000 and individuals facing fines of up to $11,000.

Renters have the right to terminate a rental agreement before moving in if the property fails to meet minimum standards at the commencement of their lease.

Additionally, if already residing in the property, renters can seek urgent repairs or compensation through the Victorian Civil and Administrative Tribunal (VCAT).

In one of my recent cases at VCAT, the renter has been awarded $1,221 in compensation.

The ruling found that the rental provider had neglected to ensure adequate ventilation in the bathroom, leading to condensation and mould growth on the walls and ceiling.

The renter contended that these mould issues detracted from their enjoyment of the property.

How can Consumer Affairs Victoria find out about non-compliant property?

A new task force was set up by Consumer Affairs Victoria to crack down on advertising and rental properties that do not meet minimum rental standards.

The task force will allow public to report illegal conduct by the agent or rental provider and engage their intelligence team to upload evidence and photos through their website.

Consumer Affairs Victoria is urging public to report illegal conduct to designated task force. The task force would start responding to complaints this year and be staffed by intelligence analysts, inspectors, investigators, and lawyers.

In addition, social media has become increasingly popular for reporting real estate issues, particularly in the realm of residential rentals, amidst rising concerns over the cost of living and a rental crisis.

Sections of the Act that relate to minimum standards

If you want to know what the law says about minimum standards for rental properties, you can read these sections of the Residential Tenancies Act 1997:

• Section 65A - Occupation of rented premises that do not comply with rental minimum standards
• Section 72 - Urgent repairs

Conclusion

There you have it, a comprehensive guide to the minimum standards for rental properties in Victoria. It is crucial for rental providers and real estate agents to ensure compliance with these standards to avoid substantial penalties and fines.

Are you a property manager or rental provider in Victoria? Use our Rental Minimum Standards Checklist to ensure your property meets all the requirements.

And if you have any other questions or concerns regarding rental minimum standards, feel free to reach out to us via social media channels.

We are here to help you!