Homeowners pleading for answers while Government avoids property sector

Author: Gil King, CEO of Real Estate Institute of Victoria
Date: 6 Jul 21

Opinion Editorial  

As we approach the three-month mark of the Andrews Government’s sweeping changes to the Residential Tenancies Act, the real estate sector is operating in a vacuum of information having sought clarification on numerous issues with very few answers being provided.
 
Disappointingly, everyday mum and dad property investors are getting radio silence to a long list of simple but important questions surrounding vague and at times poorly written legislation.

On behalf of the sector, the Real Estate Institute of Victoria has made myriad attempts to find answers to the most basic of questions.
 
The 132 changes to the tenant-owner relationship include increased cost, obligation, and legal consequences for the owner. Not to mention confusion.
 
Are electrical and gas safety checks required for ‘new build’ houses that are rented out, given that plumbers and electricians have recently signed off? Can notices of entry be served by email? Two examples of simple yes or no questions that have been ignored.
 
When do the minimum standards for rental properties and the obligation to carry out electrical or gas safety checks apply to properties that have been continuously occupied by the same renter?
 
The sector would be delighted if the Government could unlock the puzzle of ‘dead’ locking devices for doors. Three types exist: a deadlock, a deadbolt and a deadlatch. The legislation requires a deadlock be fitted to any external door that can fit a deadlock. The definition of ‘deadlock’ is flawed because it means a ‘deadlatch’ with at least one cylinder. The result of the definition is that a deadlock is not a deadlock and a deadbolt is not a deadlock whereas a deadlatch with only one cylinder, which has no ‘dead’ locking function is a deadlock. Got all that? As a result, many rental providers are not replacing locks at all simply because they don’t know what is required.
 
Another, is the additional information required by the Director of Consumer Affairs Victoria for a notice to vacate if the rental provider is going to demolish the property. Currently, a notice to vacate for this purpose will be invalid if a planning permit is not attached to the notice. The problem with this requirement is that most demolitions do not require a planning permit. How can you attach a document that does not exist?  

Given that rental providers may be unwittingly breaking the law, the failure to address the uncertainty is unacceptable, particularly given the ease at which many of these issues could clarified by the Andrews Government.

The failure of the Andrews Government to recognise the property sector and its contribution to the state - both economically and socially - means that Victoria is fast becoming a less desirable place to invest and do business.

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