Are the Current proposed changes to the Residential Tenancies Act 1997 really “Fairer Safer Housing”. We’re asking all property investors to have their say.
The Victorian state government’s current changes to Residential Tenancies Act could have a substantial negative financial impact on Victorian landlords. If you own or are about to purchase an investment property in Melbourne here’s a few things you need to know.
The key issues that are a cause for concern include:
- Setting minimum standards for rental homes that could create a significant financial impact on landlords;
- Potentially removing the “no specified reason” notice from the Act;
- Non-structural property modifications without landlord consent;
- Landlords paying an upfront special ‘maintenance bond’ for urgent repairs; and
- Creating constraints on open for inspections for properties for lease and for sale – which are likely to make it more difficult to undertake OFI’s.
As property managers, landlords and investors ourselves these changes to the act concern us here at AusInvesta.
Main concerns with the guidelines are;
- Who is going to set these minimum standards and how will they be determined?
- Removing the 120 days no specified reason notice to vacate from the act will increase the difficulty to remove a problem tenant from your property without having to go through VCAT.
- Non-structural modifications without landlord notice, I don’t want a tenant making any modifications without notifying their property manager or landlord and how will this be policed.
- This is really not necessary as most landlords have a minimum urgent repair allowance in their lease and management agreement.
- 24/48 hours’ notice to inspect a property for either sales, leasing or routine inspections is sufficient. Most agents and tenants are willing to work together to ensure that the lease or sale of a property is not overly impacted and the tenants enjoyment of the property is also maintained.
The AusInvesta team encourages all landlords to have their say, click on the Link provided to sign the petition against proposed changes or get in contact with the government and give them your feedback. http://www.reiv.com.au/news/policy-issues/rta-review
If you would like to know more about these proposed changes please don’t hesitate to contact us directly on 1300 569 576.