If you own or manage investment properties in Victoria, you will be affected by the changes to Residential Tenancies Regulations which are came into effect in March 2021.
There is a long list of changes to be aware of. Failure to meet compliance means you risk hefty financial penalties and potentially a public black-listing.
The changes affect things like how often a property owner can raise the price of rent as well as the process to evict a renter. They also revise the minimum rental standards for residential leased properties.
There is a great deal to be aware of, including a change to official terminology; for example a ‘landlord’ is now known as a rental provider, while tenants have become ‘renters’.
As a rental provider, you will need to make sure the tradespeople you have on call have an understanding of the changes so you don’t inadvertently fail to be compliant. This is especially important if you self-manage your properties.
What your tradies need to know about rental standards in Victoria
A repair is no longer ‘just a repair’ in the world of rental properties. Your tradesperson needs to complete every job so it meets the standards as defined in the new legislation.
For example, rented premises must meet the ventilation standards in the Building Code of Australia. Your tradesperson should be aware of this before making changes to the property. In addition, the bathroom at your rental property must include the following:
- reasonable hot and cold water supply
- a washbasin, shower/bath
- minimum 3 star rated showerheads
If you commission a plumber to fix or upgrade a bathroom at a rental property, they need to ensure every box is ticked.
Another example is kitchens, which must also have hot and cold water, a dedicated food preparation area and a stovetop in good working order, with two or more burners.
View more information about rental minimum standards here.
Protecting the safety of tenants
The new legislations are extensive and improve renter safety as well as comfort.
For example, residential rental properties must have electrical safety switches installed from 29 March 2023.
There is also the requirement for ongoing maintenance and inspections on all smoke alarms, gas and electrical services in all rented properties. For example, all Victorian investment properties are now required to have ALL gas appliances checked at least every two years by a qualified gas fitter.
If you are a rental provider, you must comply with prescribed requirements for keeping and producing records of gas and electrical safety checks conducted at the property. Your renters are not allowed to remove, deactivate or interfere with the operation of a prescribed safety device (e.g. smoke alarm), unless it is reasonable to do so.
When it comes to smoke alarms, the rental provider must ensure smoke alarms:
- are correctly installed and in working order
- are tested according to the manufacturer’s instructions at least once every 12 months
- have their batteries replaced as required
- are repaired or replaced as an urgent repair.
Renters must:
- notify the rental provider in writing as soon as possible after becoming aware that a smoke alarm is not in working order.
If your tradespeople are up to date on the legislation, they will be proactive in ensuring maintenance and inspections are carried out. They will also understand the importance of making sure everything is compliant and be able to provide the correct evidence of their visits.
Tradespeople are essential when it comes to not only maintaining the value of your investment property, but ensuring it is compliant so you avoid financial penalties. Look for providers who are 100% across the new rules. This will help you provide a smoother experience for your renters and better outcomes for your investment property.
