The changes to residential rental obligations in Victoria pose a challenge to mom and dad investors who could now face a substantial increase in the costs of their real estate investments, according to the Real Estate Institute of Victoria.
The new set of rules includes over 120 changes to owner obligations that will take effect on March 29, 2021.
Gil King, CEO of REIV, said the changes would increase the costs of ownership and make the maintenance and management of the property more complex. These could become a deterrent for investment.
"The new costs introduced by these changes will likely lead to higher rents and could see mum and dad investors move out of this asset class, putting additional pressure on rental availability and leasing. accessibility for Victorians, ”he said.
One of the new responsibilities given to the owners is to ensure the availability of all the basic amenities, such as hot and cold water in the bathroom and laundry room, ovens , functional hobs and sinks in the kitchen, permanent and functional heating in the living room.
Under the new rules, tenants will have more freedom to make simple changes to rental property. They won't need permission to install picture hooks, attach child restraints, replace curtains, and use energy efficient lighting.
The new rules, according to the state government, are a "step towards a more equitable tenancy for all Victorians".
"These are the biggest rental reforms in Victoria – setting the minimum standards that must be provided in all rental properties, to better protect vulnerable tenants and turn rental properties from a home into a real one. home, "said Melissa Horne, Minister of Consumer Affairs, Gaming and Alcohol Regulation.
King said that with the changes coming into effect soon, industry players need to be educable.
"Having said that, changes are now a reality that the industry must face and REIV stands ready to help owners, managers and stakeholders adapt accordingly," he said. he declares.
REIV will provide its members with tools and resources as well as online and offline information sessions and courses to guide them through change.
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