Tenancy reform is on the table as the Victorian Government promises to make life fairer for tenants

“No-fault” evictions will be banned, registration fees will be scrapped and the cost of breaking a tenancy will be capped at four weeks’ rent under new reforms proposed by the Victorian government.

After unveiling a raft of housing policies and promising to be “the prime minister who gets millennials into homes”, Jacinta Allan has added six new promises, this time aimed at making rents fairer.

Under planned reforms, which will be introduced to the Victorian parliament in the next 12 months, landlords will no longer be able to evict tenants on fixed-term contracts for no reason.

But tenants can be asked to move out for reasons such as damage, non-payment of rent or if landlords want to move back into the property.

Owners will need to provide evidence for bond applications

“Done” bond applications are also under the spotlight, with the state government planning to impose requirements for evidence such as photographs or receipts and impose financial penalties on those who do the wrong thing.

A report by a Melbourne law firm earlier this year, which was based on the experiences of hundreds of tenants over two years, found too many letting providers were making unreasonable claims about their tenants’ bonds.

The government is also looking to crack down on landlords who move out tenants at the end of a contract and then raise the price.

It wants to discourage the practice by banning landlords from evicting their tenants after the end of the first fixed term without reason.

Another key government promise is to limit tenancy break charges to fair and reasonable compensation for lost rent, capped at a total of four weeks’ rent.

This would apply to fixed-term tenancies of five years or less, with one month’s rent due for each remaining month – until the cap is reached.

Meanwhile, an already tight Victorian rental market shows no immediate signs of improvement, with the state recording its steepest drop in rental stock since records began in 1999.

Real estate investment groups say previous rounds of pro-tenant reforms — including new minimum standards — have fueled an exodus of landlords from the state.

Tenancy reforms are about respect, says Jacinta Allan

The Prime Minister said tenants’ rights were “all about respect”.

“That’s the principle we’re trying to bring to the rental market through more than 130 reforms, and that’s why we’re leading the nation in that.”

The government’s other tenancy reforms include banning agents, providers or third-party apps from charging an extra application fee if they want to check a tenant’s “blacklist” rental history.

The reforms, if enacted, would also prohibit third-party “rental technology” apps from charging hidden fees, instead making it free to pay rent either digitally or in person.

Finally, the Allan Government promised to change the law so that any tenant who loses a security fob or electronic key must receive a replacement if they request one.

“More money” in tenants’ pockets

Consumer Affairs Minister Gabrielle Williams said the reforms would put “more money in tenants’ pockets”.

“These reforms firmly place Victoria at the absolute forefront of rental rights in this country – we’ve heard what tenants are saying and we’re acting.”

Tenants Victoria chief executive Jennifer Beveridge said the not-for-profit organization welcomed the measures, which would help protect the rights of the nearly 30 per cent of Victorians who rented.

“After all, housing is an essential service and a human right,” Ms Beveridge said.

“Extending the ban on no-cause evictions gives tenants more security. It puts them on a fairer footing to claim repairs, for example, knowing that rental providers can’t ask them to leave without a reason under the law.”

Banning no-fault evictions is likely to be one of the first reforms under consideration, with the state government planning to introduce the reform to parliament before the end of this year.