24th April 2020 / Andrew Paterson: Changes to Residential Tenancies Act Expected to be Postponed to January 2021

In a recent update from REIV President, Leah Calnan, the Victorian Government will propose changing the commencement date of the Residential Tenancies Amendment Act to no later than 1st January 2021.

'This means that if conditions improve earlier, the government could proclaim an earlier date for commencement than 1st January 2021. Regardless, this is a welcome relief for the real estate profession and allows us to focus on current matters,' said Ms. Calnan.

In the interim, our tenants and rental providers can rest assured that our Property Management team continues to receive ongoing training in response to the proposed changes. All properties are effectively managed in collaboration with new and existing processes in mind, allowing us to better serve our clients and keep them updated as changes arise.

For more information on changes to the Residential Tenants Act, please see below.

Legislated changes already in place 2019-20:

• Long Term Leases (01/12/2019): Long-term leasing is a new option available under the Residential Tenancies Act. A long-term lease allows tenants and landlords to tailor the terms of a lease agreement of more than five years and agree up front on things like rent increases and minor changes to the property.
• Changes to Rent Increases (19/06/2019): Where leases entered are into on or after 19 June, landlords must not increase the rent more than once in any 12-month period.
• Pets in Rental Properties (02/02/2020): The new renting laws mean renters can keep pets at a rental property, with the written permission of the rental provider (landlord). Rental providers can only refuse permission with approval from the Victorian Civil and Administrative Tribunal (VCAT).

  Consumer Affairs Pet Law Information

In addition to the recent change in legislation now in force (regarding pets at rental properties), important draft regulations regarding minimum standards have been released and we believe they will now come into law no later than 1st January 2021.

The urgent repair definition has also been updated to include: cooling, safety devices, mould and dampness.

Put simply, the State Government has been working to introduce a minimum standard that applies to rental properties in Victoria. This means that property owners will no longer be authorised to lease out properties that do not meet certain requirements. Consequently, tenants will have the right to withdraw from tenancies where these standards have not been met.

New Pool Regulations Have Come Into Effect

On 1st December 2019, new pool and safety standards were announced by the Victorian Government in response to a series of investigations which saw faulty and unsafe pool barriers result in the deaths of children in backyard swimming pools.

The new regulations require that all pool and spa owners must register their pool or spa with their local council by 1st January 2021. All owners also have a legal obligation to ensure their safety barriers are inspected once every four years.

If Fletchers are managing your property which includes a pool or spa (functional or not), please contact the relevant council or check their website for more information on how to register your pool or spa, including the fees payable. You will be required to complete a registration form and pay the registration fee with the council direct.

Please communicate with your Property Manager to advise once you have registered your pool with the applicable council by 1st January 2021.

Owners are also required to have safety inspection checks completed by registered Pool Safety Officers and will be required to lodge a certificate of barrier compliance with their council. If a safety barrier is not compliant, it is the owner's responsibility to make the barrier compliant and once these works have been completed, a further safety inspection check will need to be conducted to ensure the barriers comply.

Fletchers can arrange a safety inspection check to be completed at your property, please advise your Property Manager if you would like us to arrange this on your behalf.

To access further information regarding pool safety and requirements, please visit the links below and your local council website.

• https://www.kidsafevic.com.au/water-safety/pool-fence-safety/pool-fencing-laws/
• https://www.vba.vic.gov.au/consumers/swimming-pools

Proposed changes to Residential Tenancies Act (1st January 2021): Rental Minimum Standards"

1. Locks: All external entry doors other than any screen door, attached to an external door must have a functioning single action deadlock. Double action deadlocks will no longer be permitted.
2. Vermin Proof Bins: Rubbish and recycling bins must simply have a lid and be of a standard provided by the council or compatible with local council collection.
3. Toilets: Must be in good working order and connected to a reticulated sewerage system or wastewater system or any other system approved by the local council.
4. Bathroom facilities: Must be connected to a reasonable supply of hot and cold water and contain a washbasin, a shower or a bath. If a shower is present, a shower head is to be either a 2 or 3-star rating, depending on whether it's a mains pressure or gravity fed system.
5. Kitchen facilities: The following are required to be provided:

   • A dedicated area intended for cooking and food preparation.

   • A sink in good working order connected to a reasonable supply of hot and cold water.

   • An oven in good working order.

   • A stovetop in good working order – The number of burners required depends on the number of bedrooms in a property.

6. Laundry Facilities: Any laundry facilities present must be connected to a reasonable supply of hot & cold water.

7. Structural Soundness: The rented premises are to be structurally sound and weatherproof, including no leaks.

8. Mould & Dampness: Each room in the rented premises must be free from mould and damp caused by or related to the building structure.

9. Electrical Safety: On and from 1st July 2022 in relation to electrical safety, all power outlets & lighting circuits are to be connected to a switchboard circuit breaker that complies with prescribed electrical standards.

10. Window Coverings: On and from 1 July 2021 each window in a room that is likely to be used as a bedroom or living area is to be fitted with a curtain or blind that can be opened or closed to reasonably block out light and provide privacy.

11. Windows: All external windows which should be capable of opening must be able to be set in a closed or open position and have functioning latches to secure against entry.

12. Lighting: Interior rooms corridors and hallways are to have access to light whether natural or artificial to provide a level of illuminance appropriate to the function or use of these rooms.

13. Heating

    • On and from 1st July 2020 a fixed heater in good working order is to be installed in the main living area of a Class 2 building i.e. apartment buildings

    • On and from 1st July 2020 a fixed heater in good working order is to be installed in the main living area of a Class 1 building i.e. single standalone single house terrace house, row houses or townhouses. If a fixed heater is not installed on or by 1 July 2020 an energy-efficient fixed heater which is not fuelled by LPG is to be installed.

    • On and from 1st July 2022 an energy-efficient fixed heater in good working order is to be installed in the main living area of a Class 1 building and the energy-efficient heater is not to be fuelled by LPG.

    Definition of energy-efficient:

    • A non-ducted air conditioner or heat pump with a 2 star or above heating rating

    • A gas space heater with a 2 star or above heating rating

    • A ducted heating or hydronic heating system which has an outlet in the main living area

    • A slow combustion wood heater

Note: No electric heaters meet the above criteria under the new regulations.

Safety-Related Activities

1. Electrical Safety Activities: compulsory check of all electrical installations, fittings and appliances provided by the rental provider – the landlord every 2 years. Compliance Certificates must be issued to confirm the checks.
2. Gas Safety Activities: compulsory gas safety check of all gas appliances every 2 years. Compliance Certificates must be issued to confirm the checks.
3. Smoke Alarm Activities: smoke alarms checked and tested every 12 months. Compliance Certificates must be issued to confirm the checks.
4. Carbon Monoxide Alarm Safety Activities: If the premises contains carbon monoxide alarms they are to be checked and at least tested every 2 years. Compliance Certificates must be issued to confirm the checks.
5. Pool Fence Safety Activities: Pool fence to be in good repair and meet recent new standards introduced.
6. Bushfire Prone Area Activities: Only relates if the rented premises is in a bushfire prone area and required to have a water tank for bushfire safety.

Non-Compliance with Minimum Standards

Rental Providers must ensure that the property complies with minimum standards before a Renter moves in. If a property does not comply with the minimum standards, the Renter can terminate the rental agreement before they move in, with no recourse, or they can request it as an urgent repair.

Expanded Definition for Urgent Repairs

Urgent repairs will now include repairs or replacements relating to air conditioning, safety devices and any fault or damage which makes the property unsafe or insecure, including pest infestations, or mould or damp caused by or related to the building structure.