Landlords in Victoria Face $11,000 Fines for Misconduct
Investigators will inspect issues such as functional kitchens, lockable external doors, and leaky taps.
The Victorian Labor government intends to create a new task force that may penalize landlords who engage in misconduct.
However, the Opposition is inquiring in Parliament about whether this task force will extend to government landlords of state-owned housing.
According to the government’s reforms, a landlord who allows a new tenant to move into a rental property that fails to meet specific standards could face an $11,000 (US$7,300) fine.
The task force, housed within Consumer Affairs Victoria, is supported by a $4 million investment and will enlist additional intelligence analysts, inspectors, investigators, and lawyers within the government agency.
The task force will target offenses like false advertising, failure to submit bonds, and renting out properties that do not meet basic standards.
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These basic standards encompass features that individuals would reasonably expect in a home.
This can range from a functional kitchen to lockable external doors and being water-resistant and structurally sound.
“Most rental providers and real estate agents act ethically—today’s announcement aims to deter those attempting to commit rental offenses,” Ms. Williams noted.
Consumers Affairs Victoria also mentioned that they will encourage the public to report on illegal practices to their intelligence team and provide evidence.
Companies may face a $57,000 penalty if they fail to meet these minimal rental standards.
Opposition Raises Concerns With Taskforce and Taxes
Shadow Minister for Home Ownership and Housing Affordability Evan Mulholland questioned the applicability of the task force to the Victorian government.
Ms. Allan expressed that there are still “too many agents” and “rental providers” who persist in renting out substandard properties.
“This is why we are setting up a dedicated new task force focused on identifying those engaging in misconduct. Allowing a renter to move into a property that fails to meet these standards is a criminal offense,” she stated.
“We will ensure it is treated as such.”
Building on Rental Reforms in 2021: Government
The labor government implemented over 100 rental reforms in 2021, which they asserted made renting in Victoria more equitable and secure.
This was preceded by a consultation that concluded in 2019, involving more than 700 submissions from the Victorian community.
These changes included prohibiting rental bidding, introducing new rental minimum standards, prohibiting evictions without cause, and enacting new rules on urgent repairs.
“The rental task force builds on the initiatives outlined in the Labor Government’s housing statement, including banning all forms of rental bidding, limiting rent hikes between consecutive fixed-term rental agreements, and extending notice periods for rent increases and vacating to 90 days,” the government declared.
Ms. Williams added, “It has been almost three years since our groundbreaking package of over 130 rental reforms took effect, and today we are making the rental market more equitable for all by establishing the rental task force.”
Victorian Property Taxes
This comes following the implementation of new taxes on Victorians who own a second home or an investment property on Jan. 1, 2024.
Shadow Housing Minister Richard Riordan recently highlighted the impact of property taxes in Victoria on renters.
“Unprecedented tax rates are harming individuals and families who can least afford it. A government cannot simply tax its way out of financial challenges.”
On March 18, Mr. Mulholland also raised concerns about data indicating a 0.8 percent decrease in rental bonds in Victoria.
“As Labor’s promise to construct 80,000 homes annually for the next decade drifts farther away, the rental shortage worsens with Labor’s hikes in land tax and failure to address other punitive property taxes such as stamp duty.”
