Landlords brace for significant change in residential tenancy obligations.
Mum and Dad property investors in Victoria are facing a substantial increase in the cost and time invested in managing their assets, following this week’s release of the Victorian Government’s Residential Tenancies Regulations 2021 which will underpin the Residential Tenancies Act of 1997.
More than 120 new landlord obligations come into effect on 29 March 2021, just one day after the completion of an onerous COVID-19 rental moratorium that put significant pressure on property owners and managers throughout 2020.
The changes will require extensive education and engagement in just two months to help ensure the real estate sector is equipped to implement the regulations effectively.
Real Estate Institute of Victoria CEO Gil King said the new standards will trigger an unbalanced regulatory burden on the rental market.
“Increasing ownership costs and making maintenance and management of property more complex is a deterrent for investment,” Mr. King said.
“New costs introduced through these changes are likely to result in higher rents and could see Mum and Dad investors exit this asset class, putting further pressure on rental availability and affordability for Victorians.
“The REIV has made these consequences known to property policy makers, so we are surprised to see even more of a pendulum swing away from investment property owners, now referred to as rental providers.
“That said, the changes are a now reality that the sector needs to face and the REIV stands ready to help property owners, managers and stakeholders adjust accordingly.”
The new standards will, in many cases, require substantial changes to processes, documents and systems, meaning a fresh round of education is needed for the sector.
The REIV will lead on-and-offline information sessions and courses for its members throughout February and March, as well as have a range of tools and resources available at www.reiv.com.au. Self-managers of investment properties are encouraged to seek assistance from an REIV member to help navigate the new regulations.
Mr. King added: “For decades, real estate in Victoria has managed to play well with the cards it has been dealt, with the market’s performance in a coronavirus-stricken 2020 a good example. For this reason, we should have confidence that the competent people in the industry will manage through these changes and continue to contribute to a thriving sector.”
Article courtesy of REIV.