The Victorian Government has proposed changes to rental standards which could negatively impact the rental market even further, with significant costs potentially in store for landlords.
In a media statement released by the Real Estate Institute of Victoria, proposed changes outlined by the government include introducing minimum standards for energy efficiency and safety in rental properties.
While the REIV welcomes such improvements, it suggests the government needs to consider financial incentives, longer timeframes, education and compliance training for rental providers in order to minimise the negative impact on the struggling rental market.
Without this support, the REIV fears rental providers will simply sell up, further exacerbating the rental property shortage.
In a statement released on July 2nd, REIV President Jacob Caine said, “We are concerned that rushing to implement these new standards without a strategic plan and clear, unambiguous guidelines might, in practice, lead to delays or outcomes contrary to the intent of the legislation. Therefore, we strongly urge the government to extend the timelines for this rollout, especially for complex works where a property is already broadly compliant.”
The REIV suggests the government consider providing financial assistance for energy upgrades such as through land tax rebates, and implementing a 36 month lead time with a transitional period for compliance.
They also suggest there needs to be education for landlords and tenants on exemptions as well as energy efficiency and safety obligations, along with compliance training to avoid potential issues around non-compliance.
Stay tuned for the outcome.
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By Wendy Chamberlain
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With a passion for all things real estate spanning 20 years, Wendy loves that her role as a Buyers and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.