The first of two planned changes to real estate laws in Victoria has now passed in parliament. Mainly focussed on rental laws, it also increases the penalties for underquoting to up to $47,422 per offence.
Included in the rental changes is the removal of “No Reason” vacate notices, a ban on rental bidding, a minimum notice to vacate period of 90 days (currently 60) and increased privacy provisions relating to holding details of rent applications. The changes are due to take effect no later than November, 2025.
The increased penalties for underquoting will be very welcome. The remaining changes are of debatable merit. None of the changes make owning an investment property more attractive. They largely have the feel of tweaking laws to show that an effort is being made to provide further protection to renters, without addressing the reality that increased rental availability would be of far more assistance.
Toughening laws is far easier politically than addressing the cause of the constantly reducing rental stock, especially when this is a direct result of Government action. The main causes being land tax hikes and more and more onerous rental laws.