The State Government's new rental reforms do nothing to balance the rights of landlords and will drive more people from the investment sector fears KR Peters Director Peter Nicolls.

In early March, The Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024 passed through the Victorian Parliament.

The Bill stops all types of rental bidding and changes the notice period from 60 days to 90 days.

Mr Nicolls said increasing the 60 days notice to vacate to 90 days means agents will need to be better prepared and organized with their paperwork

The bill also bans no fault evictions.

A new standard application form will be introduced for both renters and real estate agents and it will be an offence for renters to be charged fees by rent tech platforms when making a rental application or for paying their rent.

Properties must meet minimum standards when they are advertised for rent and it is up to the agent to take 'reasonable steps to verify that the property meets the rental minimum standards'. If those standards are not met it must not be advertised or offered for rent.  According to Property Compliance Victoria, the burden of proof is on the landlord and agent. The maximum fine for individual landlords or agents is $11,855.

Real estate agents, property managers, owners corporations managers and conveyancers will also be required to be registered and undertake ongoing professional development to maintain their registration.

Additional reforms in the Bill will make annual smoke alarm safety checks mandatory for all rental properties and will give the Director of Consumer Affairs and Victorian Civil and Administrative Tribunal additional powers when considering rent increase reviews.

Mr Nicolls said the reforms place further burdens on landlords and property managers.

He said VCAT decisions already favour renters at the expense of landlords who may face mounting financial losses as they try to deal with bad tenants.

"My experience is that VCAT adopts the position that renters need all the assistance they can get and clearly favours their position in matters of dispute," Mr Nicolls said.

"These changes come on top of extra taxes already levied by this state government to deal with its debt crisis.

"Rental providers are continuing to sell their investment properties which is creating an acute rental shortage this will only get worse with the introduction of the new Act."

The new laws will come into effect in November with additional reforms announced last October to be introduced in a Bill later this year.

Property investors wanting to discuss these significant changes to the way rental properties are managed in Victoria can contact the team at KR Peters Officer 5943 1111 or Wantirna South 9800 0000.