14 Jul Is your apartment compliant with the “New Minimum Standards”?
One of the recent changes to the Residential Tenancies Act in Victoria included what is known as minimum standards. This means when a residential property is rented, it needs to comply with a list of things with regard to locks, bins, toilets, bathrooms, kitchens, laundry, structural soundness, mould or dampness, electrical and gas safety, window coverings (starting 2022), windows, lighting, ventilation, and heating.
Most modern and well managed apartments already comply with all these requirements but may need minor tweaks or safety checks. However some older homes and apartments will need more significant work to make them comply. Consequently a number of investment owners of these older apartments are deciding the cost of compliance is not worthwhile and are preferring to sell the property.
Given most buyers are owner occupiers, this will reduce the total rental stock over time which will be another factor contributing to the upward pressure on rental values over the next few years.