Victorian landlords will be banned from evicting tenants without a valid reason and the penalty for breaking a lease slashed under renter-friendly changes.
After a raft of recent moves to win over prospective first homebuyers, the Victorian government has turned its focus to renters.
Legislation would be introduced to parliament by the end of 2024 to ban no-fault evictions, also known as no-grounds evictions in other states, Consumer Affairs Minister Gabrielle Williams announced on Wednesday.
Tenants in Victoria can be evicted at the end of their first fixed-term tenancy without being provided a reason.
Under the change, landlords will still be able to kick out tenants for usual reasons such as failing to pay rent, damage or the owner moving in.
The move is designed to crack down on landlords evicting tenants and putting the property back on the market to bump up the rent.
The NSW Labor government passed laws to establish a similar ban earlier in October.
South Australia and the ACT have already banned no-grounds evictions for both periodic and fixed-term tenancies, while Queensland and Tasmania have put a stop to only the latter.
Western Australia and the Northern Territory allow no-grounds evictions for all tenancies.
Other incoming Victorian measures include capping the cost of breaking a rental agreement, outlawing fees to process rent or carry out background checks, and financial penalties for making dubious bond claims without evidence.
The Victorian government has proposed a limit of one week's rent for each month left on the broken lease, up to a maximum four weeks in total, but is yet to settle on a final number.
Landlords and agents also won't be able to terminate access to electronic keys or security fobs without ending the rental agreement, and cannot unreasonably deny a request for an extra electronic key.
Ms Williams said 30 per cent of Victorians rent and the number is growing, with people renting for longer amid the housing crisis.
She said the state Labor government had pushed through more than 130 rental market reforms and the latest six were about fairness.
"It is about making sure that we are providing that growing number of renters in our community the benefit of a safe, secure and fit-for-purpose home," the minister told reporters.
The reforms will be gradually rolled out over the next 12 months through different pieces of legislation.
The end of no-fault evictions would allow renters to breathe a collective sigh of relief, Tenants Victoria managing lawyer Georga Wootton said.
"For a lot of renters, we hold that burden, we hold that stress as we sign up to a new lease, wondering are be going to be the same position a year from now," she said.
"It's a wonderful opportunity we have now to remove that burden."
Greens housing spokeswoman Gabrielle de Vietri described the reforms as common sense but suggested the biggest issue remained unaddressed.
"The reality is that while landlords can still jack up the rent to their heart's desire, renters will still be drowning in rent payments," she said.
"The thing that renters actually need right now is an end to unlimited rent rises."
