The Real Estate Institute of Victoria (REIV) confirmed this week its intent to participate in the Victorian Government’s consultation process for proposed new minimum rental standards, which will focus on improving the energy efficiency of rental properties.
The Victorian Government is proposing to introduce new minimum requirements for rental property including ceiling insulation, draughtproofing, new electric hot water systems and three-star efficiency cooling.
The REIV welcomes the ambition to improve the energy efficiency of Victorian homes to reduce carbon emissions but says that the delivery of new requirements must avoid placing further financial strain on rental providers, many of whom are ‘mum and dad’ investors already facing tough operating conditions.
Jacob Caine, President of the REIV, said the Victorian Government should consider the financial capacity of Victorian rental providers when rolling out any new requirements, and ensure that new requirements do not add unnecessary pressure to the state’s struggling rental ecosystem.
“While we recognise these changes are needed to help realise the state’s net zero targets, the new requirements also come at a time when many rental providers may not be able to afford to make them. The costs of retaining an investment property have risen very sharply in recent times,” Mr Caine said.
“We’re asking the Government to be mindful that any further financial burden on rental providers could see them sell those homes, placing more strain on an already depleted rental property ecosystem.”
“These are complex issues and similarly complex changes that require adequate time and consideration to ensure implementation is efficient and effective; as such, we urge the government to allow more time to analyse and understand the impacts on the sector.”
“We welcome the opportunity to participate in the consultation and will be discussing the proposed changes with our members as part of our submission.”
