What Victoria's newest rental laws might mean for landlords

In March 2021, rental law reforms came into effect in Victoria. These changes have had an impact on how landlords operate in Victoria through a variety of set standards, some of which are included below.

For example, under these new rental laws, if a renter pays overdue rent within 14 days of it becoming due, any notice to vacate issued by the landlord for the overdue rent is invalidated. This process applies the first four times this happens in a 12 month period, after which a notice to vacate may be relied on in an application to VCAT for a possession order.

Under the new rental laws, there are now 14 categories in which the rental property must meet certain minimum standards.

What are some of the minimum standards?

Door locks

All external entry doors to the rented premises which are not able to be secured with a functioning deadlatch — other than any screen door attached to an external door — must at least be fitted with a locking device that is operated by a key from the outside, and may be locked from the inside with or without a key.

This does not apply to a front door that opens to common property (for example, the entrance to an apartment building). 

Ventilation

Rented premises must meet the ventilation standards in the Building Code of Australia.

Vermin proof bins

These must be supplied by local council and compliant with council regulations.  

Bathroom facilities

These must include a reasonable hot and cold water supply with a washbasin and shower or bath, alongside a minimum 3 star rated showerhead.

Kitchen facilities

Must have a dedicated food preparation area with a sink (with hot and cold water) and a stovetop in good working order with two or more burners. If an oven is present, it must be in working order.

Mould and dampness

Each room must be free from mould and damp caused by the building structure.

Electrical safety

Premises must have electrical safety switches installed from 29 March 2023. This means that all power outlets and lighting circuits will need to be connected to a switchboard circuit breaker and residual current device. This is something that landlords will need to get an electrician to fit.

Window coverings

All windows in bedrooms and the living area must have coverings that can block light and provide privacy from 29 March 2022.

Lighting

Interior rooms and corridors must have appropriate access to light – artificial or natural. Any habitable rooms must have access to both. 

What are some of the other reforms that have been included?

Ending a fixed term lease

New renting laws mean landlords can only issue a notice to vacate at the end of the first fixed term of a rental agreement. This new law does not apply to long-term rental agreements of more than five years. After receiving a notice, renters can give landlords a 14 day ‘notice of intention to vacate’.

Reasons for notice to vacate

With these new reforms, landlords may only issue a notice to vacate to end a rental agreement, for certain specified reasons. They cannot issue a ‘no specified reason’ notice to vacate.

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Information disclosure

Under new renting laws, rental providers must disclose certain information to renters before they sign a rental agreement. For example:

• if an agent has been engaged to sell the property,
• if a contract of sale has been prepared, or
• there is an ongoing proposal to sell the property.

Repair costs

Landlords must reimburse a renter for the costs of urgent repairs within seven days of the renter claiming these costs. Accepted urgent repairs have now been updated and include repairs to air conditioning, safety devices and any fault or damage which makes the property unsafe or insecure. This can include pest infestations, or mould/damp caused by or related to the building. The monetary limit for renters to complete urgent repairs has also been increased, where the landlord has not immediately responded to an urgent repair request.

Free keys

Landlords must provide a free set of keys to each renter that has signed the rental agreement. However, if the renter requests an additional key or device, then the landlord can charge a reasonable fee.

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Utility bills due to hidden faults

If a renter receives an excessive utility bill due to a hidden fault (eg, a leaking water pipe), the landlord will need to pay the costs that exceed the renter’s ordinary usage amounts.

Rules of entry

In compliance with more detailed rules around rights of entry, there will be changes to the following:

• Notice periods for some grounds will be extended.
• Restrictions for renters protected under personal safety and family violence legislation.
• Length and frequency of entry.

Capped rent increases

The amount or method for calculating any increase of a fixed-term rental must be set out in advance in the rental agreement.

Landlords and renters who have existing rental agreements signed before 29 March 2021 will be exempt from some of these new rental laws, until the prior agreement is completed and a new agreement is signed.

You can stay reassured by knowing that GIO can help provide cover to your property from a range of devastating events, including malicious acts or vandalism by tenants, and loss of rent. See the Product Disclosure Statement for more details.

As we offer a lifetime guarantee on the workmanship of GIO authorised repairs to your property, alongside our 24/7 claims capability where you can claim, and track the progress of your claim, online or over the phone – you can take comfort in a ready-to-use claim process. We know that some accidents happen and you can’t control everything, but we also know that you can trust us to get the job done when they do^*.

00:01 Meet Taylor. 

00:02 Taylor has just rented out her  investment property to the Patels. 

00:07 Congratulations Taylor,  you’re officially a landlord! 

00:11 So she’d like to learn a little  more about Landlord Insurance 

00:16 First, Taylor would like to know  what Landlord Insurance covers. 

00:22 GIO Landlord Insurance offers  new for old replacement  

00:25 and Taylor can get cover for certain situations.* 

00:29 This can include loss or damage  from insured events like storm,  

00:33 flood, and fire including bushfire, but  not within the first 72 hours of cover. 

00:39 She may also be covered for insured events like  theft, vandalism, and malicious acts of vandalism  

00:46 as well as accidental breakage of glass  if they fall within the policy terms**. 

00:51 She can even be covered for legal  liability up to $20 million. 

00:57 Taylor thinks that kind of cover  would be great for peace of mind...  

01:01 but it sounds a lot like Home  Insurance. Are they the same thing? 

01:07 Great question! While there can be crossover,  Home Insurance and Landlord Insurance have  

01:12 some important differences, which would  ultimately depend of the policy wording. 

01:17 Taylor would generally look at landlord  insurance instead of home insurance  

01:22 because the property she is looking at  insuring is not being occupied by her. 

01:27 So, what are some of the  differences between the two? 

01:32 Unlike Landlord Insurance, Home Insurance  normally doesn’t include things like loss  

01:37 of rent and tenant default. It also  ordinarily wouldn’t cover Taylor’s  

01:40 property for malicious acts caused by tenants. 

01:44 So, does Taylor have to  take out Landlord Insurance? 

01:48 No, it’s not required by law. But certain  lenders may require their customers to have it  

01:54 when they take out a mortgage on a  property. You should check with your  

01:57 lender and make your own enquiries. Finally, Taylor is wondering whether  

02:04 she can claim Landlord Insurance  as an expense on her tax return. 

02:09 Generally speaking, landlords can claim Landlord  Insurance as a deduction at tax time however you  

02:15 should seek your own advice from an accountant  or the Australian Taxation Office on this point. 

02:22 Make sure to read the Product Disclosure  Statement when considering this product. To get a 

02:26 Landlord Insurance quote, head to gio.com.au. You’ll also find some handy information and  

02:34 tips about Landlord Insurance  on our GIO Know More blog.

Read more:

• Tips on getting the most from your home and contents insurance
• Home insurance claims: Repair or replace?
• What can void home insurance?

^* Terms and conditions for coverage apply relevant to the Product Disclosure Statement for GIO Landlord Insurance. When we repair or rebuild the home, we guarantee the quality of workmanship of that work for the lifetime of the home.

Landlord Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Read the Product Disclosure Statement before buying this insurance. Go to gio.com.au for a copy. This advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. The Target Market Determination is also available.