Victorian property investors face cost increases with 100+ new landlord obligations
Property investors in Victoria are facing a substantial increase in the cost and time invested in managing their assets, following new Victorian Government’s residential tenancies regulations.
More than 120 new landlord obligations come into effect on March 29.
The Real Estate Institute of Victoria CEO Gil King said the new standards will trigger an unbalanced regulatory burden on the rental market.
“Increasing ownership costs and making maintenance and management of property more complex is a deterrent for investment,” Mr. King said.
King says the new costs were “likely to result in higher rents.”
‘Or Victoria could see Mum and Dad investors exit this asset class, putting further pressure on rental availability and affordability for Victorians.”
The REIV noted investment property owners were now referred to as “rental providers” by the Andrews government.
King said the new standards will, in many cases, require substantial changes to processes, documents and systems, meaning a fresh round of education is needed for the sector. The Regulations will affect rental providers (landlords) and the 1.5 million Victorians living in rental housing. This includes private rental housing; public and social housing; rooming houses; caravan parks and residential parks.
The new regulations include what rental minimum standards will look like; modifications renters can make to rental properties along with updates to some forms for renters and rental providers given the terms used in the regulations that apply from 29 March 2021 will need to be changed to renters – currently called tenants; rental providers – currently called landlords; rental agreements – currently called tenancy agreements and rooming house operators – currently called rooming house owners.
