Amendment of Residential Tenancies Act 1997

The law explicitly states that both residential rental providers (landlords) and their agents (real estate agents and property managers) can be held legally liable if a non-compliant property is advertised without a reasonable belief that it meets the standards.
 

This means liability can apply to:

1. Individual landlords (natural persons).
2. Corporate landlords (body corporates or companies that own rental properties).
3. Individual real estate agents who are responsible for advertising the property.
4. Real estate agencies or property management companies that oversee leasing properties.

 

If a breach occurs, both the landlord and the agent can be fined separately, meaning fines can accumulate if multiple breaches are found across different properties.

The penalties outlined in Section 65B are:

• For Individual Landlords or Agents (Natural Persons): 60 penalty units
• For Companies or Real Estate Agencies (Body Corporates): 300 penalty units

 

As of July 1, 2024, the value of a penalty unit in Victoria is $197.59.

Therefore, the maximum fines are:

• Individual Landlord or Agent:
  • 60 penalty units × $197.59 = $11,855.40
     
• Real Estate Agency or Corporate Landlord:
  • 300 penalty units × $197.59 = $59,277.00

 

These fines are per offense, meaning if multiple properties are found in breach, the fines can multiply significantly.

Additionally, Consumer Affairs Victoria (CAV) has the authority to issue infringement notices for lesser fines or escalate matters to the Victorian Civil and Administrative Tribunal (VCAT) or court proceedings, where full penalties can be enforced.

To avoid penalties, landlords and agents must demonstrate that they took reasonable steps to confirm that the property met the rental minimum standards.

 

A "reasonable belief" could be supported by:

• Recent property reports verifying compliance with standards.
• Certificates of compliance for gas, electrical, and safety checks.
• Written documentation from qualified tradespeople confirming repairs or upgrades have been completed.
• Internal compliance checklists used by real estate agencies before listing a property.

 

If a landlord or agent fails to provide evidence of reasonable belief, they may struggle to defend against penalties or legal action.

For Landlords:

• They must ensure their property meets the minimum standards before leasing.
• They cannot pressure agents to advertise non-compliant properties.
• They may be fined separately from their agent if a breach occurs.
   

For Real Estate Agents & Property Managers:

• Due diligence is crucial - agents cannot blindly trust a landlord’s claim that a property complies.
• Internal compliance procedures should be established to verify a property’s compliance before listing it.
• Failure to comply can result in direct liability, even if the landlord is also penalized.
• Agencies should train staff on minimum standards compliance and documentation best practices.

The Victorian government has intensified enforcement in the rental sector, with Consumer Affairs Victoria (CAV) increasing compliance inspections and issuing fines.
 

Recent reports indicate:

• Over $450,000 in fines have been issued since the Renting Taskforce launched in 2024.
• More frequent inspections of rental listings for compliance with advertising laws.
• Crackdowns on agencies failing to disclose non-compliance in advertisements.

With the introduction of Section 65B, enforcement is expected to increase, meaning both landlords and real estate professionals must be proactive in ensuring compliance.