top of page
Writer's pictureRia McIntyre

$450K in Fines Issued for Rental Law Breaches in Consumer Affairs Victoria Crack Down

Consumer Affairs Victoria’s renting task force was launched earlier this year in March and has now issued more than 40 fines totalling over $450,000.

In this article we cover:


  • the top breaches of rental laws which led to fines being issued;

  • the costs of non-compliance, both financial and other;

  • best practice to avoid falling foul of the Consumer Affairs Victoria crack down; and

  • the benefits of using an external provider to conduct Rental Minimum Standards inspections and gas, electrical and safety checks.


 

Established to crack down on a range of rental law offences, the newly-formed Victorian Government rental task force wields the power to issue penalties for rental bidding, not lodging a bond, false advertising and renting out a property that doesn’t meet the mandatory minimum standards.


The rental task force is well-resourced, employing intelligence analysts, inspectors, investigators and lawyers to monitor rental campaigns and conduct targeted inspections. Furthermore, they can take enforcement action, including official warnings, infringements (fines), disciplinary proceedings against Estate Agents, and court actions for the most serious breaches.


Top Breaches of Rental Regulations Leading to Fines


In the last 7 months, fines have been issued for a range of compliance failures including:


  • Failure to meet Minimum Standards for Rental Properties: Letting a Renter move into a property that does not meet all 14 categories of minimum standards is an offence. Areas of non-compliance must be rectified prior to the day the Renter moves in.

  • Neglecting Safety Check Requirements: Annual smoke alarm safety checks must be regularly conducted at rental properties in Victoria, along with gas and electrical safety checks every 2 years by a licensed Technician.

  • Bond Lodgement Breaches: Victorian law mandates rental bonds be lodged with the RTBA (Residential Tenancies Bond Authority) in a prompt manner. Not lodging bonds promptly is deemed a breach of the law.

  • False Advertising: Opaque, inaccurate or incomplete advertising of rental properties, especially regarding rental prices, can mislead Renters and result in penalties for the Agency or Owner involved.


The Cost of Non-Compliance


Failure to comply with rental regulations can bring a variety of short and long term implications:


  • Financial Penalites: It should now be clear to both Owners and Property Managers that substantial fines will be issued for non-compliance. For failure to meet Rental Minimum Standards, these fines can be up to $11,000 for Owners or $57,000 for Managing Agencies, or where the property is owned by a Company. False or misleading advertising may also breach Australian Consumer Law where fines can be substantially higher - up to $50 million for corporations and $2.5 million for individuals.

  • Reputational Damage: Further to financial penalties, Owners and Real Estate Agencies (both the company and individuals ) can be listed on the Consumer Affairs Victoria Non-Compliance Register here https://registers.consumer.vic.gov.au/RPRsearch. The impact of this on brand trust and reputation can be significant and very hard to win back, with long-term effect on an agency.

  • Renter Safety: Gas, electrical and smoke alarm safety checks are called "safety checks" for a reason. Along with Rental Minimum Standards, these checks are all part of keeping properties safer and to a reasonable living standard for Renters. Failure to undertake regular safety checks or keep a property to minimum standards can have serious health and safety consequences for Renters.

  • Property Deterioration: Rental Minimum Standards checks provide peace of mind that a property is compliant, but also acts as a "health check" of sorts for Owners on the condition of their investment. A thorough Rental Minimum Standards inspection can identify areas that could become a concern in future, allowing Owners to take preventative action and potentially avoid more costly maintenance or rectification work down the track.


Best-Practice to Avoid Non-Compliance


  • Keep on Top of Safety and Compliance Checks: Ensure that properties are receiving the required safety checks as and when they are due, and that Rental Minimum Standards inspections are undertaken before renters move in. Reminders can be set up in your CRM to ensure that inspection dates are not missed, with some CRMs now offering specific "Compliance" sections. The easiest and most fail-safe way to ensure that your property complies is to use an experienced external provider (see benefits listed below).

  • Maintain Compliance Reporting and Documentation: Detailed reporting and documentation to show compliance with rental regulations not only provides proof of compliance should it be needed, but is also part of thorough and efficient rent roll management.

  • Ongoing Education and Training: Having a full understanding of the legal responsibilities as a Property Manager along with keeping up to date with new regulations and changes to rental law is essential. Equally important is the clear communication of regulations to Owners - this should include outlining their legal obligations, the implications of non-compliance and providing them with the best solutions to ensure they do not breach standards.

  • Make Transparency in Advertising a Priority: Transparency is always the best policy when it comes to property advertising. It reinforces a reputation of integrity and fairness, builds trust with potential Renters and helps to avoid disputes.


The Benefits of Engaging an External Safety and Compliance Check Provider


The easiest way to ensure that your property remains compliant with gas, electrical and smoke alarm safety checks, and meets Rental Minimum Standards is to use an experienced external provider to inspect your property.


Using an external provider for these safety and compliance checks provides certain clear benefits. At Taskforce Australia our RentSafe services bring peace of mind to our clients in the following ways:


  • Experienced Technicians: Our technicians conduct Rental Minimum Standards inspections and gas, electrical and smoke alarm safety checks regularly and so are efficient and experienced in what to look out for. In the case of Rental Minimum Standards inspections, they come equipped with specialist tools which can more thoroughly check certain categories such as mould and dampness where issues may not be easily visible.

  • Single-visit Safety Checks: We streamline our gas, electrical and smoke alarm safety checks into a single annual visit, minimising disruption for Renters, reducing workload for Property Managers and lowering job cancellation rates to less than 1%.

  • Detailed Reporting: All our safety and compliance checks come with a clear and detailed report which is received within 24hrs of the inspection. Our software integration with major CRMs reduces double handling and is designed to streamline compliance management for Property Managers (see "CRM Integration" below).

  • Rectification Recommendations: Where any categories are found to be non-compliant, we will recommend and provide quotes for rectification following your report. These are optional but provide a quick and easy avenue to bring your property to compliance.

  • CRM Integration: Safety and compliance checks are scheduled using our award-winning proprietary software platform, which integrates with major CRMs to streamline compliance management for Property Managers. Key features include allowing updates to tenant information and other property details in your CRM to be synced in our system, and PDF reports (not links) of safety and compliance checks to be updated into your CRM property folders. (It should be noted that levels of integration vary slightly between CRMs - if you would like to know more email pm@taskforce.com.au.)

  • Affordable Checks: Our mission at Taskforce is to make managing and owning rental properties more affordable and less hassle. To this support this:

    • We have not increased the cost of our gas and electrical safety checks since they were introduced over 3 years ago;

    • We offer the most cost-effective Rental Minimum Standards check on the market ($149+GST).

    • We don't lock our customers into rolling contracts - only pay for what you need after the service has been completed.


 

How to Book Safety Checks and Rental Minimum Standards Inspections


Safety and compliance checks can be booked directly through your Taskforce Agent Portal.


If you are new to Taskforce or would like to know more, email us at pm@taskforce.com.au for more information or assistance.

 

It's Easier Than You Think to Change Provider.


The RentSafe Health Check is designed to transition any size of rent roll into our tech platform. Our Health Check audits all your safety check expiry dates and optimises them into an actionable calendar of annual visits in your own Taskforce Agency Portal. This means that changing provider needn't be a big deal.



Find out more at https://www.taskforce.com.au/rentsafe-audit or book a health check here.


 
References:
12 views
bottom of page