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Victorian Government proposed reforms will push rents higher and send investors interstate, says PICA

The Property Investorsย Council of Australiaย (PICA) have urged Victorian property investors to unite and petition the State Government to amend the proposed changes to the Residential Tenancies Act.

They say Victoriaโ€™s new rental laws, announced in October 2017, are will strip landlords of many essential rights, in favour of tenants.

PICA chairman Ben Kingsley said a falling rental supply amid a booming population could leave Victorian tenants worse off.

He also believes the proposed changes make property investment less desirable in Victoria, which will ultimately result in fewer rental homes and trigger a rental squeeze that will dramatically increase rents.

โ€œLandlords make a significant financial investment to help accommodate growing rental demand, especially when the Victorian Government have committed fewer funds into social and public housing over the past 10 years,โ€ Mr Kingsley said.

โ€œThe very least the government should do is consult with important stakeholders before surprising us with these big changes. We are concerned this has more to do with politics than in addressing any serious problems with the existing Act.

“PICA, on behalf of its members, want a meeting and consultative process first as our landlords have a lot of unanswered questions regarding these proposed changes.โ€

Among the 14 proposed reforms by the Andrews Government, Mr Kingsley said the most concerning to landlords include:

  • Changes to the notice periods around ending a lease, removing the ability for a landlord to serve a 120 Day Notice to Vacate for โ€˜No Specified Reasonโ€™, and removing the option to serve a 60 or 90 Day Notice to Vacate for โ€˜End of Fixed-term tenancyโ€™ after the initial first term.
  • Allowing tenants to make non-structural modifications to rental properties.
  • Capping bonds at one monthโ€™s rent where the rent is less than $760 per week.
  • Removal of the landlordโ€™s right to consent to, or refuse, pets.

The Property Investors Council of Australia (PICA) is a relatively new association set up to provide a voice for property investors, aiming to advocate on behalf of property investors to government, industry, and consumers.

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