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, it’s important to stay on top of your legal responsibilities as a rental provider in Victoria. The legal landscape for property owners in Victoria is dynamic, so keeping up with it requires proactive actions.
Maintain the property
All properties must adhere to the 14 categories of minimum standards for rental properties. These must be met on or before the day a renter moves into the property and cover the structure, maintenance requirements and services that are required for each rental property. There are currently new proposed standards, expected to come into effect in October 2025.
Follow correct procedures for rent increases
In order to increase the rent, the rental provider needs to give the renter at least 60 days advanced notice. In most cases, rental can’t be increased more than once every 12 months. If renters believe the increase is higher than the market range, they can challenge it via Consumer Affairs Victoria.
Be mindful of the legalities around tenant deposits and bond collection
In most cases, a bond can’t be more than one month’s rent. There are, however, instances when an owner can ask for a higher bond – such as when the weekly rent is more than $900 or VCAT has set a higher bond (usually in the case of the character of the property or the quality of the fixtures and fittings). The bond is held by the Residential Tenancies Bond Authority (RTBA). If a rental provider asks for a bond, they must give the renter 2 copies of a property condition report (or 1 electronic copy). The bond must be lodged with RTBA within 10 business days. Rental providers can only ask for additional bond when there is a long-term agreement (more than 5 years) or when renters ask to make changes to the property, and the owner must give 120 days written notice.
Handle disputes and legal actions in the correct manner
The first step should be to try and resolve the issue by discussing it with the renter. If that does not work, the next step is to put the request/complaint in writing or issue a formal written notice. There are standard forms available via Consumer Affairs Victoria. If the issue is still unresolved, as a last resort you can take the issue to VCAT. You should ensure you have adhered to the full process and keep all records of anything regarding the issue before going to VCAT.
Why working with a property manager ensures you stay compliant
At Living Melbourne, we are 100% focused on property management. This means we keep abreast of any changes and make sure we help our owners stay compliant. We do this by keeping up with legal requirements and changes, conducting routine inspections of properties, organising compliance checks and actions, maintenance requirements and requests, and then communicating this to our owners. We’re also here to answer any queries or alleviate concerns you may have around your legal requirements.
For more information on how we help our property owners keep compliant, reach out to enquiries@livingmelbourne.com.au
