Key Points
- Researchers surveyed a range of rental properties to see if they met minimum standards.
- More affordable rentals were less likely to meet Victoria's minimum standards for rental properties.
- The authors of the report say more needs to be done ensure renters are more comfortable and safer at home.
An undercover research operation targeting Victorian rental properties says it's made a "worrying" discovery.
The so-called mystery shop of 100 homes available in Wyndham Vale and Bendigo found that while the majority of properties examined met Victoria's minimum rental standards, those that were more affordable were more likely to not meet the mark.
"Worryingly, properties we examined were more likely to have maintenance or minimum standards issues when the cost to rent was more affordable," the report by the Consumer Policy Research Centre (CPRC) and Tenants Victoria stated.
What are the minimum requirements for Victorian rental properties?
In 2021 the Victorian government introduced the minimum standards law, which meant that in all new rental agreements starting from 29 March 2021, the property had to meet basic minimum requirements before a tenant moved in.
Victoria's minimum standards require buildings to be mould-free, have an energy-efficient heater in the main living area and have compliant electrical switchboards, circuit breakers and safety switches.
All Victorian rental properties are required to meet the minimum standards which were rolled out in 2021.
"This is cause for concern and shows that work must be done to improve conditions for the third of the population who rent their homes," she said.
What did the report find?
Some 100 rental properties with rents between $300 to $569 a week in the outer Melbourne suburb of Wyndham Vale, and Bendigo in Central Victoria, were examined by the CPRC and Tenants Victoria to test how they fared under the state's rental minimum standards.
More than a quarter of homes had maintenance issues, including visible mould in nine, 15 failed heating standards, 26 did not meet a good standard for smoke alarm placement and 10 had no window coverings or curtains.
About 40 per cent of low-cost rentals were not well-maintained compared to 18 per cent of higher-cost properties.
Real estate agents were also asked about the properties' gas and electrical safety compliance, heater energy efficiency and any mould history. Only half were able to answer, and 13 were unable to provide any information at all.
Melbourne's rental vacancy rate is about 1.15 per cent and regional Victoria's 1.12 per cent, according to property research firm PropTrack's January market report.
"There's a risk that in a tight rental market, some people may feel they have no choice but to accept unsafe or unsuitable properties," the research centre’s chief executive Erin Turner told ABC Radio on Wednesday.
The report noted that the majority of homes examined met minimum rental standards and that renters in other parts of the country could see similar levels of compliance if state and territory governments followed Victoria's lead.
What has the report recommended?
The report made seven recommendations to strengthen protections including detailed guidance on what is required for a rental and for Consumer Affairs Victoria (CAV) to monitor and enforce laws on properties with lower-than-average rent.
More enforcement is required across all affordable rentals to ensure renters are protected.
"We did find that there's a lot of properties that are affordable that do meet the minimum standards, but we saw ... things that would make a home unsafe or unliveable," Turner said.
In its findings, the report urged the CAV to develop detailed guidance to help parties better understand what is required for a private rental.
Industry leaders were also urged to reform laws to ensure essential information about a property is provided at or before an inspection and expanding minimum standards to ensure people are comfortable and safer at home.
It also recommended that specific guidance around the requirements for toilets in enclosed spaces, structural soundness, ventilation, identifying mould and adequate lighting be developed.
SBS News has contacted the Real Estate Institute of Victoria for comment.
