They’ve been a long time in the planning, but the amendments to the Residential Tenancies Act (RTA) are finally coming into force on March 29 2021. They will have a significant impact on the way that CEHL and Common Equity Rental Housing Co-operatives (CERCs) do business as landlords. CEHL will be providing training, advice and support to co-ops with the changes.
In total there are forty areas of change, some of which are relatively minor. For instance, from 29 March 2021
- Tenants will be known as “Renters”
- Landlords will referred to as “Residential Rental Providers”
- Tenancy agreements will be known as “Residential Rental Agreements”
Some of the changes that offer more rights to renters:
- Renters can keep a pet with the written permission of the residential rental provider, permission cannot be unreasonably refused
- Renters will be allowed to make certain modifications without the residential rental providers consent, for example installing picture hooks, screws for wall mounts, shelves or brackets on surfaces other than exposed brick or concrete walls
Some changes offer more rights to the residential rental provider:
- A new ‘strike’ system applies; the first four times in a 12-month period a renter is given a notice to vacate for non-payment of rent are treated differently to the fifth and subsequent times a notice is given
- If a renter has received four notices to vacate for rental arrears in a 12-month period, they will accrue ‘4 strikes’ against their name. If no more notices are received during that period, the strikes will be cleared when the 12-month period ends
- However, if a fifth or subsequent notice is given in the same 12-month period, the rental provider may apply to Victorian Civil and Administrative Tribunal (VCAT) for a possession order at the end of the 14-day notice period. VCAT may issue the order even if the renter pays the outstanding rent within the 14-day notice period
- Further, VCAT cannot dismiss the application solely on the grounds that the renter could pay off the unpaid rent under a payment plan
Some changes affect maintenance:
- The definition of urgent repairs is being widened to include a breakdown or failure of cooling appliances supplied by the residential rental provider, and faults or damage that makes the premises unsafe or insecure, including the presence of mould or damp, caused by or related to the building structure
- Mandatory gas and electrical safety checks will be required for all installations, appliances and fittings provided by the rental provider, to be carried out every 2 years by licensed or registered electricians and gas fitters
CEHL has been active in the consultation process that has led to these amendments, and overall we are comfortable that they will offer improved rights and protection to both renters and residential rental providers. We have all been given a very tight timeline to implement the changes, and over the next six weeks we will be offering a range of training, materials and resources to make sure that we are all prepared in good time. This builds on the training many of you have already attended in 2019 and 2020.
We will be in touch soon with details of some training that we will be offering, but if you have any questions in the meantime please contact your Co-op Development Coordinator who will be able to discuss the changes with you in more detail.
Also see summary article about RTA changes to take effect