Tenants may soon be able to challenge a rent hike based on its size alone and when they get charged more despite owners not maintaining the property under proposed rental reforms.
Legislation was introduced to Victorian parliament on Wednesday to enact a raft of previously announced rental reforms.
But Premier Jacinta Allan and Consumers Affairs Minister Gabrielle Williams have added two changes to the mix to crack down on excessive rent increases and dodgy rentals.
In addition to the previously flagged changes, the bill will expand on the "limited" list of factors considered by Consumer Affairs and the Victorian Civil and Administrative Tribunal when assessing a rent review.
The extra factors have not been settled but proposed options include the size of the rent increase and any other improvements that have or haven’t been made at the property since the last rise.
Consumer Affairs Victoria executive director Nicole Rich said there had been a more than 100 per cent increase in rental review requests in 2023/24 and another 37 per cent rise this financial year so far.
"We had over 7400 Victorians reach out for help," she said.
"In about a fifth of the cases, we are finding that under the current laws (the rent rises are) excessive. That's already very concerning."
Other additional features include new penalties for those who don't comply with minimum rental standards.
Companies could be fined up to $59,000 and agents and landlords up to $11,000 for advertising or offering to let properties that do not meet the standards.
"We're talking about things like a functioning toilet, hot and cold running water, lockable doors," Consumers Affairs Minister Gabrielle Williams said.
"These aren’t asking for luxury, they're asking for the basics of livability."
Victorian Greens spokeswoman Gabrielle de Vietri said it was ridiculous the size of a rent increase was not already a factor when determining fairness.
"This is just more tinkering around the edges from Labor," she said.
"The only way to actually crack down on landlords jacking up the rent is by freezing and capping rents."
Premier Jacinta Allan rubbished the idea of a rent cap despite one operating in the ACT, with increases restricted to 10 per cent above the Consumer Price Index.
"International evidence tells us that rent caps don't work," she said.
Other elements of the bill were announced in late October during the premier's blitz of housing policy announcements and the 2023 housing statement.
They include ending no-fault or no-cause evictions, banning all types of rental bidding, outlawing fees to process rent or carry out background checks and lifting the notice period for rent increases and notices to vacate to 90 days.
More rental changes will be introduced through separate legislation to be brought to parliament in 2025.
