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New Residential Tenancy Laws in Victoria

July 1998

The Victorian Residential Tenancies Act 1997 came into force on 1 July 1998, replacing the Residential Tenancies Act 1980, the Rooming Houses Act 1990 and the Caravan Parks and Movable Dwellings Act 1988. In consolidating these pieces of legislation into the one Act, the Victorian Parliament has introduced a number of changes to residential tenancy law in Victoria.

Under the new Act, a new body to be known as the Residential Tenancies Bond Authority (RTBA) is established to manage all Victorian residential tenancy bonds. The term "bond" replaces the previous "security deposit" for reasons of clarity. From 1 July 1998, all bonds received by a landlord must be forwarded to the RBTA within five business days after receipt of the bond, and must be accompanied by a completed Bond Lodgement Form. The RBTA must forward receipts displaying the registered number of the bond to both the tenant and the managing agent within seven days after receiving the bond.

If a landlord wants a tenant to vacate, notice must be given to the tenant by registered post and in a form prescribed by the new Act. Further, a reason must be given for the landlord wanting the tenant to vacate (unless it is a 90 day notice). A fixed term tenancy agreement of six months or more may now be terminated by either party giving 90 days notice. Where no reason is specified by the landlord in the notice to vacate, the minimum notice time has been reduced under the new Act from six months to three months.

Further, where there is a set ending date on the lease, the tenant and landlord or agent can agree to end the tenancy early. If agreement cannot be reached, the person who wishes to end the tenancy early has to apply to the Residential Tenancies Tribunal. The Tribunal can reduce the period of the tenancy agreement if letting the period of the tenancy agreement would be a serious problem for either the landlord or tenant, or if at the start of the tenancy the landlord or tenant did not know that the problem was going to occur. The Tribunal can also make an order providing for compensation to be paid by the person who has applied for the reduction of the period of the tenancy, to the other person.

At the end of the tenancy, the RTBA will pay out the bond upon the signed request of both the tenant and landlord or at the direction of the Tribunal.

For further information, contact Joe Lederman at BALDWINS, Australian Lawyers & Consultants.

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