REIV Calls for Balanced Change

In its latest submission titled Striking a Balance, the REIV outlines a series of legislative recommendations to restore confidence in Victoria’s rental sector, ensuring both renters and rental providers are treated fairly.

Why Reform Is Urgently Needed

Since 2021, more than 130 legislative changes have reshaped the rental landscape, most aimed at improving renter protections. While well-intentioned, this wave of reform has had unintended consequences:

• Investor confidence has plummeted, with many leaving the rental market altogether.
• Rental supply has declined, driving up weekly rents.
• Small-scale investors (mum-and-dad landlords), who own 72% of rental properties, are facing rising costs, compliance burdens, and limited legal recourse in problem tenancies.

As a result, Victoria is experiencing historically low vacancy rates, just 2.5% in metropolitan areas and 2.1% in regional Victoria (as of April 2025), well below the 3% benchmark for a balanced market.

REIV’s Key Recommendations for Reform

The REIV’s submission offers a practical, balanced path forward, with four major reform priorities:

1. Strengthen Protections Against Illegal or Misleading Behaviour

Current issue: Rental providers face difficulty evicting tenants who provide false information or engage in illegal activities.

REIV proposal:

• Expand grounds for issuing Notices to Vacate (NTVs) to include:
  • Drug-related conduct
  • Unauthorised commercial use of a rental property
  • Knowingly submitting false or misleading rental applications

These changes would bring private rental rules in line with public housing provisions, allowing property managers to better protect community safety.

2. Improve Responses to Rent Arrears and Persistent Breaches

Current issue: Tenants can miss up to five rent payments per year before serious consequences apply.

REIV proposal:

• Reduce the threshold for possession orders from five to two breaches in 12 months.
• Remove the requirement that the same breach must occur multiple times.

This aims to stop chronic non-compliance and protect landlords from unrecoverable rental losses.

3. Align Notice to Vacate Periods

Current issue: Renters only need to give 14 days' notice to vacate, while rental providers must now provide 90 days' notice.

REIV proposal:

• Extend renters’ required notice to 28 days, creating parity and allowing landlords adequate time to re-let properties and avoid income gaps.

4. Introduce a Merit-Based Points System

Current issue: There’s no scalable system to deal with repeat offenders.

REIV proposal:

• Create a points-based system that tracks the severity and frequency of tenant breaches.
• Once a threshold is reached, the system would allow escalation to a possession order.

This would offer a more transparent, fair, and enforceable process for managing difficult tenancies.

Why These Reforms Matter

According to Jacob Caine, Interim CEO of the REIV, the proposed changes are not about rolling back renter protections. Instead, they aim to strike a balance that ensures the long-term viability of the rental sector.

“While the REIV supports protecting fundamental renter rights, our recommendations seek to address a growing imbalance that negatively impacts rental providers,” Mr Caine said.

Without urgent legislative reform, Victoria risks:

• Losing more rental providers
• Reducing housing availability
• Further inflating rental prices
• Undermining trust in the private rental sector

Victoria’s rental crisis requires more than just temporary solutions, it needs a fair and balanced legislative framework. The REIV’s proposed amendments to the Residential Tenancies Act 1997 offer a clear, actionable path forward that benefits both renters and landlords.

As housing affordability continues to be a major issue across the state, these reforms can restore confidence, encourage investment, and help stabilize the rental market for all Victorians.

Read the full REIV submission here:
Striking a Balance – June 2025 (PDF)

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