Some rental providers are losing thousands of dollars in rent as a massive backlog at the Victorian Civil and Administrative Tribunal (VCAT) creates headaches for owners and property managers alike. 



KR Peters Senior Property Manager Crystal Barneveld described current wait times at VCAT as "horrendous".



"COVID stopped VCAT hearing some types of cases completely - bond and compensation cases for example. Other cases that used to be heard quite quickly are now severely delayed," she said.



Ms Barneveld said a hearing for the possession of a property when a renter is not paying rent for instance has blown out to 17 weeks. Pre-COVID the wait was 4 to 6 weeks.



"By the time you receive a hearing date, if the renter has continued to not pay rent, a renter could be in excess of $10,000 in arrears."



Ms Barneveld has one case on her books where the renter is $8,500 in arrears. Luckily, she has managed to convince VCAT to fast track that hearing after providing evidence of the financial hardship caused to the property's owner.



"On average, owners can expect a wait of up to five months, and that's just to get a hearing date," she explained.



"It's an additional three to four weeks to actually get the hearing. By that point there could well be a substantial amount of rent owning. In the meantime, the rental provider has to continue to pay the mortgage and fund their own expenses and accommodation. Essentially they have to float two properties."



Ms Barneveld said the situation was causing a “massive amount of stress” for rental providers.



The situation is the same for bond and compensation cases. Ms Barneveld has one case which has been pending since December 2020. Other KR Peters property managers have cases that have been waiting even longer.



"Essentially these cases are not being heard. VCAT has started going through the backlog but they are not necessarily hearing cases.



"The only cases being heard any time soon are urgent repairs or cases involving domestic violence."



To alleviate the pressure, VCAT has introduced several emergency measures and appointed new members to bolster the tribunal.



One innovation is 'On the Papers', whereby rather than waiting for a hearing, parties can submit evidence to VCAT via email which is then reviewed and a determination made without an in-person hearing.



VCAT's dispute resolution team is also helping with the bond compensation backlog by encouraging parties to mediate an agreement prior to a hearing. If they agree, VCAT writes up an enforceable order. If not, the dispute is referred back to the pool of cases waiting for a hearing date.



VCAT has also introduced payment plans whereby if the renter and rental provider agree to a payment plan they can lodge documents to that effect with the authority. If the renter doesn't stick to the plan the matter can be reheard.



Ms Barneveld said the situation had made her job "difficult in the sense that when we run out of the options we normally use we are having to wait so long".



"It has taught us to negotiate payment plans with renters to try to work around VCAT wait times. In a lot of instances negotiation can resolve the issue before the hearing."



Ms Barneveld said the new measures were a "step in the right direction" but the backlog will take some time to clear.



In the meantime everyone potentially loses out.



"It is vital VCAT gets through the backlog and back to a regular timeframe to prevent so much loss occurring. If the rent isn’t paid, the rental provider may lose their property, rendering the renter homeless - it’s a lose-lose situation."



Her advice to rental providers is to be open to payment plans and trust the process.



"If your agent has good negotiation skills a payment plan is preferable rather than relying on the VCAT process to resolve the issue," she advised.



"Be patient and trust the process and be open and honest with your property manager. If you are struggling they may be able to assist you get an earlier hearing."