Understand Your Legal Responsibilities as a Rental Provider

September 26, 2024

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Your Legal Responsibilities as a Rental Provider: What you should know

Rental property has long been a source of wealth for investors through income from rent and the associated capital growth. However, to protect your investment and maximise your returns, you need to understand your legal responsibilities as a rental provider in Victoria. The legal landscape for property owners in Victoria is dynamic, so staying on top of it requires proactive action.

Maintain the property

All properties must adhere to the 14 categories of minimum standards for rental properties. These standards must be met on or before the day a renter moves in and cover the structure, maintenance requirements, and services needed for each rental property. New proposed standards are expected to come into effect in October 2025.

Follow correct procedures for rent increases

To increase the rent, the rental provider must give the renter at least 60 days’ advanced notice. In most cases, rent can’t increase more than once every 12 months. If renters believe the increase exceeds the market range, they can challenge it through Consumer Affairs Victoria.

Be mindful of the legalities around tenant deposits and bond collection

In most cases, a bond can’t exceed one month’s rent. However, an owner can request a higher bond in certain situations, such as when the weekly rent exceeds $900 or VCAT sets a higher bond due to the property’s character or the quality of fixtures and fittings. The Residential Tenancies Bond Authority (RTBA) holds the bond. When asking for a bond, the rental provider must provide the renter with two copies of a property condition report (or one electronic copy). The bond must be lodged with the RTBA within 10 business days. Rental providers can only request an additional bond for long-term agreements (over 5 years) or when renters request changes to the property, with 120 days’ written notice required from the owner.

Handle disputes and legal actions in the correct manner

Start by discussing the issue with the renter to resolve it. If that doesn’t work, put the request or complaint in writing or issue a formal written notice. Standard forms are available through Consumer Affairs Victoria. If the issue remains unresolved, you can take it to VCAT as a last resort. Ensure you have followed the full process and keep records of everything before going to VCAT.

Why working with a property manager ensures you stay compliant

At Living Melbourne, we focus entirely on property management. We stay up-to-date with legal requirements and changes, conduct routine property inspections, organize compliance checks and actions, handle maintenance requests, and communicate all this information to our owners. We’re also here to answer any queries or alleviate concerns about your legal requirements.