The Victorian Government introduced the greatest rental reforms in over 20 years, back in March 2021.
As a real estate investor, it's likely that you are already familiar with many of the biggest changes, such as those relating to pets, minimum standards, safety-related activities, and disclosure documents.
The disclosure document has been designed to assist Renters on making an informed decision before entering into a new lease agreement. Some owners have enquired regarding the need to do this “every time” the renter signs a new lease agreement. It is necessary to complete a new form with every new lease/ lease renewal. This is because from year to year your circumstances or the condition of the property may change.
There are two parts to this new legislation. The first is in the Residential Tenancies Act 1997, Division 1B which covers disclosures and representations prior to entering into residential rental agreements. The second is in the Residential Tenancies Regulations 2021 which outlines in full detail what must be disclosed. An interesting read if you’d like to delve deeper into the requirements.
Of particular note is the Penalty of 60 units for an individual who fails to provide this to their renter when signing a new lease. This equates to approximately $11,000. Thus when it’s lease renewal or leasing time, we urge you to allow time to promptly complete the Mandatory disclosure form that your property manager will provide you.
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